Metso's beyond mezzo when it runs the scale of energy, mining, and paper. The heavy equipment company operates in several segments and offers corresponding maintenance and support services. Its mining and construction unit, nearly half of sales, offers grinding mills, crushers, conveyors, and processing equipment. The pulp, paper and power division provides machines for paper, tissue, and paper board making, pulping and fiber handling equipment, and textiles used in paper production. The automation unit produces biomass, oil and gas, and chemical recovery boilers for power generation. Metso has operations in more than 50 countries and also owns a majority stake in car maker Valmet Automotive.
The company reorganized its divisions in 2011 to better reach its future business targets. No changes were made to its largest division, mining and construction, which accounts for about 40% of revenue. Its pulp, paper, and power segment also generates around 40%, automation generates 11%, and Valmet Automotive represents 4%. Metso moved its recycling business to become a separate business unit (3%), which makes machines that recycle scrap metal and other waste materials.
Metso saw its revenues increase by 20% from 2011 to 2011, while its net income surged by 39%. The growth was due to overall increases in total sales from all its reportable segments. Growth was strongest in mining and construction, which recorded a 23% uptick in net sales. Automation's net sales grew by 18%, while its pulp, paper, and power segment recorded an increase of 10%. Services business net sales increased 17%.
Metso's largest markets are Brazil, China, and the US, which collectively accounted for 35% of its total sales in 2011. Emerging markets represented 49% of the company's total sales.
Since companies don't buy major machinery very often, Metso is dependent on service offerings to maintain revenue. About 45% of the company's net sales come from its divisions' service offerings, which include project management, engineering, procurement, supply chain management, and parts.
Metso is looking for acquisitions that complement its product and service offerings in its various divisions. To that end, in mid-2012 it acquired full ownership of MW Power, a previous joint venture it had with Wärtsilä. MW Power supplies small- and medium-sized heat and power plants in Europe, catering to municipalities, process industries, and utility businesses.
Also that year Metso obtained Valstone Control, a globe valve and service firm serving South Korean petrochemical and power generation clients. The deal strengthened Metso's market position in the growing Asian markets in an ongoing initiative to grow its valve business. Metso previously opened new valve technology centers in Finland and China. – less