Metso’s Board of Directors have decided on Metso's long-term financial targets. Targets agreed upon in November 2011 replaced the targets set in autumn 2008.
Our goal is to create shareholder value through growth and profitability. We will focus on growth in businesses in which we are targeting a strong global position and in the services business in all our segments. Growth in sales and earnings, combined with a high return on capital employed, are the main drivers of our shareholder value going forward.
In preparation for Metso's planned demerger, the Metso Board of Directors has approved the strategy, organization, and financial targets of the new Metso as well as set financial targets for Valmet.
New financial targets will be affective as of 1 January 2014 pending the approval of the Metso EGM, to be held on October 1, 2013, and registration of the demerger.
Visit our online Annual Report to read more about our financial targets and achievements.
Our target for annual average sales growth (CAGR) is over 10 percent including acquisitions. We will continue to emphasize growth in the Services business where the target is to reach more than 10 percent growth annually.
During 2012, we achieved the net sales growth target of over 10 percent, and the services net sales exceeded the annual 10 percent target. Metso’s net sales grew 13 percent and our services business grew 11 percent in 2012.
Services net sales:
Our group-level profitability target of the annual earnings per share (EPS) growth is to exceed the sales growth.
In 2012, our earnings per share grew 5 percent, i.e. EPS growth was less than the net sales growth.
Earnings per share:
The EBITA margin (before non-recurring items) targets are set on our segments. The following target ranges are reflecting the different characteristics of our businesses:
|Mining and Construction||10%||15%|
|Pulp, Paper and Power||6%||9%|