HELSINKI, April 1, 2022 /PRNewswire/ -- Valmet announced today on April 1, 2022 that the merger of Valmet and Neles has been registered and the combination of Valmet's and Neles' business operations has been completed. Neles is consolidated to Valmet as of April 1, 2022 and forms Valmet's fifth business line called Flow Control.
Valmet's business lines are now Services, Flow Control, Automation Systems, Paper, and Pulp and Energy. Automation Systems business line was previously called Automation.
Due to the completion of the merger, Valmet updates its guidance for 2022 and confirms its new financial targets.
Updated guidance for 2022
Valmet estimates that, including the merger with Neles, net sales in 2022 will increase in comparison with 2021 (EUR 3,935 million) and Comparable EBITA in 2022 will increase in comparison with 2021 (EUR 429 million).
The previous guidance for 2022, issued on February 3, 2022 was:
Valmet estimates that net sales in 2022 will increase in comparison with 2021 (EUR 3,935 million) and Comparable EBITA in 2022 will increase in comparison with 2021 (EUR 429 million).
Valmet's financial targets
Valmet confirms the financial targets that were preliminarily announced on July 2, 2021. Valmet's financial targets are the following (previous targets in brackets):
- Net sales for stable business to grow over two times the market growth (unchanged)
- Net sales for capital business to exceed market growth (unchanged)
- Comparable EBITA: 12-14 percent (10-12%)
- Comparable return on capital employed (ROCE) before taxes at least 15 percent (at least 20%)
- Dividend payout at least 50 percent of net profit (unchanged)
Stable business refers to Services, Flow Control and Automation Systems business lines. Capital business refers to Paper, and Pulp and Energy business lines.
Further information, please contact:
Pekka Rouhiainen, Director, Investor Relations, Valmet, tel. +358 10 672 0020
Kari Saarinen
CFO
www.valmet.com
Valmet is a leading global developer and supplier of process technologies, automation and services for the pulp, paper and energy industries. With our automation systems and flow control solutions we serve an even wider base of process industries.
We aim to become the global champion in serving our customers. Our 17,000 professionals work close to our customers and are committed to improving our customers' performance - every day.
The company has over 220 years of industrial history and a strong track record in continuous improvement and renewal. In 2022, a major milestone was achieved, when flow control company Neles was merged into Valmet. The combined company net sales in 2021 was approximately EUR 4.5 billion based on the respective company figures.
Valmet's shares are listed on the Nasdaq Helsinki and the head office is in Espoo, Finland.
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