Outotec has taken a strategic decision to divest three businesses in the Metals, Energy & Water segment
Outotec has decided to divest three businesses from the Metals, Energy & Water segment’s portfolio. These businesses relate to aluminum, waste-to-energy and sludge incineration.
- The aluminum business to be divested includes green anode plant, rod shop and certain casthouse technologies as well as related service operations.
- The waste-to-energy business to be divested comprises of biomass, wood waste and various other fuel plants including related service operations.
- The sludge incineration business to be divested comprises of delivery of plants for treatment of municipal and industrial sludge and related service operations.
- In total, approximately 250 experts are working in these three businesses.
- In Outotec’s 2019 financial results, the businesses to be divested will be classified as discontinued operations, including the transfer of non-current assets held for sale and liabilities directly attributable to them on separate lines in the statement of financial position. The comparison figures in the statement of income will be restated for 2018 to show the discontinued operations separately from continuing operations.
- For the financial year 2019, the intended actions will lower the expected sales by approximately EUR 50 million but increase the adjusted EBIT* by approximately EUR 40 million. The restated comparable sales for the financial year 2018 would have been approximately EUR 1,200 million, EUR 80 million lower from the 2018 reported sales. The restated adjusted EBIT* for 2018 would have increased by EUR 20 million to approximately EUR 84 million (excluding provision for the ilmenite smelter project).
“Pursuing these strategic actions will enable Outotec to better focus on its core technologies in minerals processing and metals refining. We of course remain committed to serving our energy and aluminum customers until these divestments have been completed,” says Outotec’s CEO Markku Teräsvasara.