Tag Archives: Mining OEM

Metso’s Vauramo sees positives in mining equipment pipeline

Comminution of minerals, Equipment maintenance, IoT, Mineral processing, Mining equipment, Mining finance, Mining maintenance, Mining services, Mining software, Water management, , , , ,

Metso may not have registered any large mining equipment orders in the June quarter, but President and CEO, Pekka Vauramo, remained upbeat about the company’s future mineral processing sales prospects.

The company’s June quarter results saw healthy market activity in both the Minerals and Flow Control division, Metso said, with orders received increasing 2% – to €869 million ($966 million) – sales up 16% – to €903 million – and operating profit rising to €114 million – from €86 million previously.

Minerals posted a flat year-on-year result, whereas Flow Control orders were up 9%, according to Metso, noting that Minerals orders were positively impacted by strong services and aggregates equipment orders, while Flow Control benefited from oil & gas projects as well as services.

Metso said on the Minerals division’s results: “Equipment orders declined 14%, whereas services orders increased 9%. The lower volume of equipment orders was a result of the lack of large mining equipment orders due to timing.”

When it came to Minerals sales, however, the €735 million number was a 17% improvement on the same period in 2018, with equipment sales growing faster than services in both Minerals and Flow Control segments.

During the quarter, the company completed the acquisition of HighService Service, expanding Metso’s services offering in the mining market of Chile and neighbouring countries. And, after the quarter ended, it announced a proposed acquisition of Outotec to become Metso Outotec. This deal, if completed, would see the combined company become the second biggest process, technology, equipment and services firm serving the minerals, metals and aggregates industries based on 2018 sales. The transaction would also see the company’s Flow Control business spunoff into a separate entity called Neles Oy.

Vauramo concluded on the latest financial results: “We continued to perform well and made good progress during the second quarter. Activity in our end markets remained healthy and is shown in the good order intake for both Minerals and Flow Control.

“The pipeline for mining equipment orders continues to be good even though there were no large bookings during the quarter due to timing. Sales grew at a healthy double-digit rate in both segments. In addition to volume growth, we continue to show higher operational leverage with improving profitability in both segments. This proves that the internal work done across the businesses is generating the targeted results.”

Cat Q2 sales highlight North America mining equipment demand

Equipment maintenance, Mining equipment, Mining finance, Mining maintenance, Mining services, Mining software, , , ,

Caterpillar’s Resources Industries division continued to perform well in the June quarter of 2019, with the segment registering strong demand from, in particular, North America.

Cat Inc saw sales and revenues of $14.4 billion in the three months ending June 30, a 3% year-on-year increase, while its profit per share was up slightly to $2.83 ($2.82/share in Q2 2018).

Following these results, Cat maintained its 2019 outlook for a record profit of $12.06-13.06/share, but said it was expecting the annual figure to come in at the lower end of this range.

Chairman and CEO, Jim Umpleby, said: “We have the right strategy in place to deliver long-term profitable growth through our continued focus on strategic investments, including growing services and expanding offerings.”

The highlight of these results was a record performance from Cat’s Construction Industries division, with the $6.47 billion of sales reflecting, according to Umpleby, the company’s “strong competitive position globally”.

While this was the headline from the quarterly results, the company’s Resources Industries division put in another good shift in the period.

Resource Industries’ total sales were $2.8 billion in the June quarter, a 11% year-on-year increase, with the jump primarily due to higher equipment demand and favourable price realisation, Cat said.

“Mining customers increased capital spending to support ongoing mine site operations, which drove higher sales. In addition, sales increased for non-residential construction and quarry and aggregate customers,” Cat said.

It was easy to see where, geographically, the boost came from. North America sales were up to $1.06 billion in the quarter, from $804 million a year earlier. Latin America and Asia/Pacific couldn’t match that 32% year-on-year rise, but still saw sales climb 14% higher to $448 million and $759 million, respectively. Year-on-year sales to Europe, the Middle East and Africa, meanwhile, came in 22% lower at $446 million.

Profit was also up in Resources Industries – at $481 million in the quarter compared with $411 million a year earlier. Favourable price realisation was again picked out by Cat as one of the reasons for the 17% year-on-year jump, in tandem with increased sales volume, which was partially offset by higher manufacturing costs.

Komatsu Mining puts down roots in Western Canada with $40 m facility

Mining equipment, Mining maintenance, Mining services, , , , , , ,

Komatsu Mining has announced plans for the construction of a new facility to support the growth of its mining business in Western Canada, a region known for the oil sands industry, as well as significant coal operations.

The company plans to invest approximately $40 million to construct a 85,000 sq.ft (7,897 sq.m) sales and service facility in downtown Sparwood, British Columbia (artists impression shown), where the company has been operating for more than 30 years, it said.

Komatsu plans to break ground at the new site in early August, with construction to conclude by the end of 2020.

Steven Droste, Komatsu’s Regional Manager – Western Canada, said: “This facility will be a great new place of work for our employees while enhancing our capabilities, so we can continue to provide our customers unrivalled service delivery.”

Komatsu will continue to operate out of its leased facility in Sparwood until the new building is complete. The company purchased the 15 acre (6 ha) parcel for its new facility from the District of Sparwood and is working to prepare the land for development, it said.

Metso to establish new service centre in Lithuania

Mining equipment, Mining services, , , , , , ,

Metso has decided to establish a new Metso Business Services (MBS) centre in Vilnius, Lithuania, initially offering services for the company’s finance operations before moving into logistics.

The investment supports the company’s profitable growth strategy by improving operational excellence and scalability of business services, Metso said, with the opening of the new centre expected to take place during the December quarter.

“The objective is to centralise the related services to the new centre and thus gain benefits from process harmonisation, standardisation and digitalisation,” Metso said.

The centre will employ some tens of experts, but the number of personnel is expected to grow in the coming years, according to the company.

As part of the initiative, employee negotiations have been held at Metso Minerals in Tampere, Finland, to review the possible employee arrangements and implications, with the company deciding to transfer its Financial Services operations entirely from Tampere to Vilnius.

As a result, 28 permanent positions in Metso Financial Services in Tampere will be discontinued in 2020, after a transition period. Metso will support the affected personnel, for example by offering re-employment services and possible relocation support, it said.

Metso’s CFO, Eeva Sipilä, said: “In the past couple of years, Metso has invested in its Tampere operations by, eg strengthening its R&D and manufacturing activities. Currently, we are also exploring options for a new, modern facility in Tampere. However, the best location for the new service centre turned out to be Vilnius, which has a strong service centre culture supporting international companies.

“With this new centre, we aim to improve the efficiency of our business services and increase digitalisation to support Metso’s growth,” she said.

Metso is in the middle of trying to complete the acquisition of fellow mining OEM Outotec.

Sandvik makes mechanised cutting, autonomous equipment sales in Q2

Automation, Coal technology, Equipment maintenance, IoT, Mining equipment, Mining finance, Mining services, Mining software, , , , ,

The performance of Sandvik Mining and Rock Technology continued to stand out in Sandvik Group’s June quarter results as orders for mechanised cutting and autonomous equipment helped revenues jump.

Order intake from Sandvik Mining and Rock Technology of SEK11.9 billon ($1.27 billion) represented a historically high level, slightly shading the SEK11.4 billion posted a year earlier. Revenues and operating profit, meanwhile, were 3% and 13% higher, year-on-year, at SEK11.8 billion and SEK2.1 billion, respectively.

This compared positively with lower year-on-year order intake from the Sandvik Machining Solutions and Sandvik Materials Technology divisions, which led to overall group order intake falling 5% and adjusted operating profit dropping 2% for the quarter.

While Sandvik noted the mining market remained stable during the quarter, it also said “somewhat protracted decision-making among customers” became apparent over the three months.

Orders for equipment remained at a high level, positively impacted primarily by the mechanical cutting and automation divisions, Sandvik said, while orders for underground mining equipment declined against high comparables from last year.

Aftermarket orders increased at a “mid-single-digit pace”, both for parts & service as well as for consumables, the company said, adding that the aftermarket business accounted for 62% of revenues with the equipment business accounting for 38%.

Metso and Outotec to join together in ‘industry-shaping combination’

Bulk handling, Comminution of minerals, Equipment maintenance, IoT, Mineral processing, Mining equipment, Mining finance, Mining mergers and acquisitions, Mining services, Mining software, Sustainable mining, Water management, , , , , , , , , , , ,

The boards of Metso and Outotec have unanimously approved a demerger plan and a combination agreement to combine Metso’s Minerals business with Outotec.

As part of the deal, Metso Flow Control, which was recently split off from the Metso Minerals division, will become a pure-play listed entity under the name of Neles.

The combination of Metso Minerals and Outotec is highly complementary and will create a unique company in the industry, according to the two companies. “Metso Outotec will leverage the strengths of both companies, including technology and R&D, product and process excellence, scale and global service offering footprint. The combination will deliver significant benefits to all stakeholders,” they said.

The combined company, Metso Outotec Corp, had illustrative 2018 combined sales and adjusted EBITA of €3.9 billion ($4.4 billion) and €369 million (excluding the impact of the €110 million provision recorded in relation to the ilmenite smelter project as described in Outotec’s 2018 financial statements).

This represents an illustrative combined adjusted EBITA margin of 9.6% in 2018, excluding the benefit of the expected synergies, and also Metso’s recently announced acquisition of McCloskey International. Including McCloskey, illustrative 2018 combined sales would have been approximately €4.2 billion.

Metso Minerals and Outotec expect to achieve run-rate annual pre-tax cost synergies of at least €100 million, and run-rate annual revenue synergies of at least €150 million, delivering significant value for shareholders, they said.

Upon completion of the agreed demerger, Metso shareholders will receive 4.3 newly-issued shares in Outotec for each share owned in Metso on the record date. This implies Metso shareholders would own around 78% of the shares and votes of Metso Outotec, and Outotec shareholders would own the remaining 22% of the shares and votes of Metso Outotec. In addition, Metso shareholders will retain their current shares in Metso, which will be renamed Neles.

The current CEO of Metso, Pekka Vauramo, will become Metso Outotec’s CEO, and the current CEO of Outotec, Markku Teräsvasara, will become the Deputy CEO of Metso Outotec. Eeva Sipilä will become the CFO and Deputy CEO of Metso Outotec.

The board of Metso Outotec will include board members from both companies. It is proposed that Metso Outotec’s Chairman will be Mikael Lilius and that the Vice Chairman will be Matti Alahuhta.

Shareholders representing 33.6% of the shares and votes of Metso and shareholders representing 24.8% of the shares and votes of Outotec have irrevocably undertaken to vote in favour of the transaction, which the companies hope will close in the June quarter of 2020.

Metso Outotec’s headquarters will be in Helsinki, Finland and it will maintain its listing on Nasdaq Helsinki, the companies said.

Outotec Chairman, Matti Alahuhta, called the deal an “industry-shaping combination” that joins two “uniquely complementary companies”, while Metso Chairman, Mikael Lilius, said the deal represented a “transformational combination of two great companies” and the simultaneous creation of an “independent leader in flow control”.

Outotec CEO, Markku Teräsvasara, said: “The combination of Outotec and Metso marks an important milestone in each company’s history and in Outotec’s strategic development. I am excited about the many benefits that the combination will deliver for customers, employees and ultimately shareholders, with the larger scale and combined strengths of both companies. Outotec has a highly compelling portfolio of technologies and capabilities that will be a key catalyst for unlocking many of these benefits. I look forward to building a great new company together with the Outotec and Metso Minerals employees, as part of Metso Outotec.”

And, Metso CEO, Pekka Vauramo, said: “This is a unique opportunity to create value for our customers, employees and partners globally. Metso Outotec will have capabilities that will enable us to drive sustainable growth, while providing our customers with high-quality technology, equipment and services that will ultimately improve their businesses. We will have an extensive global presence, complementary offering, strong services and a large installed base. We also have excellent people – the best talent in the industry. I am therefore eagerly waiting to join with Outotec’s personnel to begin our exciting journey together.”

The combination of the two companies is, according to Metso and Outotec, expected to deliver a range of strategic, commercial, operational and financial benefits:

  • A leading company with a wide presence across the value chain allowing Metso Outotec to provide an end-to-end offering in minerals processing;
  • Enlarged installed base coupled with advanced service offering providing opportunities to unlock significant benefits;
  • Leadership in sustainable technology across all businesses;
  • Breadth across verticals (minerals/metals/aggregates), geography and application provide enhanced performance;
  • Significant revenue and cost synergies, and;
  • Solid capital structure and attractive dividend policy.

The companies said: “The combination of Metso Minerals and Outotec will create a leading company in process technology, equipment and services serving the minerals, metals and aggregates industries. Metso Outotec will also have expertise in specialist areas, such as recycling and energy solutions.”

Metso Outotec will have a presence across the full minerals processing and metals refining value chain, with a “differentiated ability to deliver end-to-end solutions across the whole process from crushing to end products”, they said. The combined company will own a broad portfolio of leading technologies in, for example, comminution, beneficiation and metals refining, as well as a market leading aggregates business and global strength in services.

On a combined basis, Metso Minerals and Outotec had 15,630 employees globally, as of March 31, 2019, with close to 100 nationalities represented.

Completion of the transaction is subject to approval by a majority of two-thirds of votes cast and shares represented at the respective EGMs of Metso and Outotec, regulatory approvals, including competition clearances, and other conditions.

As a result of the combination of Metso Minerals and Outotec, Metso will be renamed as Neles and will become a globally recognised flow control company with highly attractive market positions.

Neles, which will continue to be listed on Nasdaq Helsinki, is expected to create additional value for Metso’s shareholders as a separate entity through:

  • Leading position as a flow control solution provider with market leadership across pulp & paper valves and down stream oil & gas control valves;
  • Continued outperformance of market growth with best-in-class profitability and proven resilience through the cycle;
  • Diversified sales mix both by region and industry;
  • A fully focused, dedicated management to deliver shareholder value and leverage further growth opportunities;
  • Solid balance sheet and financial position, and;
  • Crystallisation of attractive sector trading multiples.

At year-end 2018, Neles had illustrative combined net cash of €72 million. To support the capital structure of Neles, Metso has entered into a €150 million term loan facility agreement, which may be used for the repayment and replacement of Metso’s credit facilities and other liabilities that benefit the flow control business and are to remain with Neles post completion. Prior to the completion, Metso is also expected to enter into a new revolving credit facility of €200 million to be used for the general corporate purposes of Neles.

Olli Isotalo, who was named the new CEO of the Flow Control division last month, will become Neles’ CEO.

Epiroc investing in 3D printing for on demand spare parts

Equipment maintenance, Mining consumables, Mining equipment, Mining maintenance, Mining software, , , , ,

Epiroc says it is introducing a project focused on the use of 3D printing capabilities for the manufacturing of spare parts.

According to Anders Johansson, Product Manager at Epiroc, working with 3D technologies will open up unlimited possibilities for the company.

One promising technology gaining momentum is additive manufacturing or a phased build-up of an object using 3D modelling and printing, Epiroc said. This has not yet been widely developed for the mining and construction industry.

“The technology of fast details production involves the manufacturing of physical samples based on CAD-data or 3D-scanning data,” Epiroc said. “This includes the use of special equipment for layer-by-layer 3D-synthesis and practically no need of further refinement.”

Earlier in 2019, Epiroc begun to explore the opportunity to implement additive technologies in the process of manufacturing spare parts; it was after high standards of quality and accuracy with this.

Johansson said: “Working with 3D technologies opens up unlimited opportunities for the company to create complex geometric shapes and maintain high quality standards.

“This technology does not only provide additional opportunities for the creation of complex parts. It also allows companies to transfer digital models around the world in minutes to manufacture spare parts right on the spot where they are needed.”

For those who use Epiroc equipment, spare parts wait time will be noticeably reduced, according to Epiroc. Consequently, equipment downtime will also decrease. In addition, the possibility of 3D printing significantly optimises the process of delivery and storage of Epiroc spare parts, which will lead to increased value for the customers, the company said.

Johansson concluded: “Thanks to the opportunities this will give, we will be able to serve our customers in new ways and, at the same time, reduce environmental impacts throughout the world, which is high on our agenda as a modern global company.”

 

LiuGong appoints Kris Kulkarni as it strives for ‘world-class’ mining product line

Automation, Equipment maintenance, Mining equipment, Mining people, Mining services, , , , , , , , , ,

LiuGong Machinery has made Kris Kulkarni Vice President, Global Mining, at LiuGong North America.

Kulkarni began his professional career at Caterpillar, in 1996, in structures, and steadily progressed in engineering roles across diverse mining products including large wheel loaders, mining trucks, surface drills, and hydraulic shovels, LiuGong said.

“LiuGong has an emerging portfolio of mining products, including trucks, large tonnage wheel loaders, excavators and bulldozers,” the company said. “Kris is exceptionally well qualified to help lead the transformation of this mining product line to world-class levels.”

LiuGong Vice President of Strategy & Aftersales and Chairman of LiuGong North America, Kevin Thieneman, said: “Kris’ extensive background and knowledge of the mining industry brings an exciting new dynamic to our company. As LiuGong is committed to expanding not only product its current line-up of mining machines but its overall understanding of these highly specialised customers, Kris will be an invaluable part of that growth.”

Kulkarni said: “I am excited to have the opportunity to join an organisation so focused on customers and employees. LiuGong has a rich 60-year history, and an inspiring vision for its future. I look forward to helping write the next chapter as we broaden the portfolio by designing and manufacturing machines in a larger-size class which offer our customers the lowest total cost of ownership.”

Strong mining and construction demand leads to Cat Q1 sales jump

Automation, Equipment maintenance, Mine shafts and equipment, Mining consumables, Mining equipment, Mining finance, Mining maintenance, Mining services, Mining software, , , ,

Demand from the mining and construction sectors saw Caterpillar’s sales and revenue jump 5% in the March quarter, the equipment manufacturer has reported.

Sales and revenue came in at $13.5 billion in the first three months of the year, compared with $12.9 billion a year earlier, with the company’s profit per share rising to $3.25/share – a quarterly record.

Cat said the sales and revenue increase was down to higher sales volume for both equipment and services and favourable price realisation, primarily in Construction Industries and Resource Industries.

Within the Resource Industries segment, Cat saw total sales grow 18% to $418 million as mining production levels and commodity market fundamentals remained positive. Quarterly profit came in at $192 million within the segment, 52% higher year-on-year thanks to the higher sales volume and favourable price realisation, the company noted.

Following these results, Caterpillar upgraded its profit per share estimate for 2019 to $12.06-13.06, from the $11.75-12.75 it previously stated.

Metso Q1 financials benefit from strong mining equipment market

Comminution of minerals, Energy minerals, Equipment maintenance, Mineral processing, Mining equipment, Mining maintenance, Mining services, Mining software, Water management, , , , , ,

Metso’s March quarter results were bolstered by a rise in orders, sales and profit margin in the Minerals division, the company reported today.

Metso posted an operating profit of €100 million ($111 million) for the first three months of the year, up from €80 million a year earlier, with orders received increasing 18% year-on-year to €1.01 billion and sales growing 17% year-on-year to €836 million. Earnings before interest, tax and amortisation (EBITA) rose from €85 million, or 11.9% of sales, to €104 million, or 12.4% of sales, the company said.

The Minerals division was a big contributor in the quarter, with orders received at €823 million (up from €688 million), sales at €681 million (up from €584 million) and EBITA margin at 12.4% (11.9% previously).

The company noted the strongest growth within the division was from the equipment side, highlighting the second order booked for Albemarle’s new lithium project in Australia as a standout win.

Metso said in its announcement that market activity in both its Minerals and Flow Control segments was expected to remain at the current high level in both the equipment and services business.

Meanwhile, President and CEO Pekka Vauramo, said the group’s results were “strong”, with high growth and improved profitability.

“Our order intake was up 18% year-on-year and the growth was broad-based in both equipment and in services. Together with the healthy order growth of last year this has resulted in a solid order backlog, which we continue to deliver with better efficiency,” he said.

“The mining equipment market looks somewhat stronger compared to the other markets we serve, thanks to the mining customers’ plans to improve productivity and add capacity.”