However, there is a wide dispersion of possible outcomes around the projections, given uncertainty surrounding the policy stance of the incoming U.S. administration and its global ramifications.
Short-term market outlook
Valmet estimates that the short-term market outlook has increased to a good level in board and paper (previously satisfactory level).
Valmet reiterates the good short-term market outlook in tissue and energy as well as the satisfactory short-term market outlook for services, automation and pulp.
President and CEO Pasi Laine: Increase in orders received and higher order backlog enable further improvement
Orders received increased 9 percent in 2016 supported by all business lines. Stable business, i.e. the Services and Automation business lines, accounted for about EUR 1.5 billion or 47 percent of all orders. During 2016, we were able to increase orders received in both stable and capital business. In capital business, the development was strong especially in Energy and Tissue. Our order backlog developed well during the year, which gives us a good starting point when moving into 2017.
In 2016, we also made good progress in improving profitability: Comparable EBITA margin increased to 6.7 percent from 6.2 percent in 2015. Although we reached our target range of 6-9 percent, our objective is to improve profitability even further. The long-term margin target from 2017 onwards is 8-10 percent, so there is still a lot of work to be done to reach our new goal.
During the last couple of years, we have put a lot of focus on our stable business. In 2016 we introduced the new Valmet Way to Serve -concept, and we have been able to grow both the Services and Automation businesses. Our new financial targets make sure that the development of stable business will be given emphasis also going forward.