Tag Archives: Pekka Vauramo

Metso focuses on growing ‘strong unified’ company and brand with name change

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Shareholders of Metso Outotec have approved the Board of Directors’ proposal to change the company name to Metso Corporation, bringing an end to a name that was instated in mid-2020 when the two firms – Metso and Outotec – merged.

The change of the parent company name Metso Corporation is effective starting May 4, 2023, but globally the change will be implemented in a phased manner. The visual identity of the company remains unchanged, but the new name is reflected in the company logo, Metso said.

Outotec continues as a product brand and carries significant value as the name of some key technologies and products, it clarified.

The news follows voting at the company’s Annual General Meeting yesterday.

“After the successful integration of Metso and Outotec, we will focus on growing a strong unified Metso company and brand,” President and CEO of Metso, Pekka Vauramo, said. “We have combined two valuable companies into one strong Metso. Our focus is clear: we continue enabling sustainable modern life and transforming the industry with a clear strategy and strong culture, supported by a name that is short yet established and well recognised among all our stakeholders. Services are an extremely important part of our business, requiring a strong name.”

Metso Outotec’s Executive Team has been renamed Metso Leadership Team (MLT).

Metso merged with Outotec on June 30, 2020, bringing together circa-15,000 employees, some 5,000 service representatives and around €4.2 billion ($4.7 billion) of sales (in 2019).

Metso Outotec to spread sustainable comminution message through CEEC

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Metso Outotec has become the latest company to join the Coalition for Eco Efficient Comminution (CEEC) as a new sponsor, with the OEM’s President and CEO, Pekka Vauramo, noting that the company’s sustainability focus aligns with CEEC’s objective to promote eco-efficient minerals.

CEEC’s vision is to accelerate the implementation of eco-efficient comminution practices through promotion of supporting data and industry benefits.

Alison Keogh, CEEC CEO, said: “Metso Outotec brings strong alignment and skills to support CEEC’s mission. Metso Outotec has a global reach and has been championing sustainability for a long time by proactively developing technologies and partnering with mining companies to become more energy efficient.”

Vauramo said: “We are committed to limiting global warming to 1.5°C and accelerating our sustainability efforts, as the most recent IPCC report makes it clear that the window of opportunity for keeping to 1.5°C is closing quickly. We want to support our customers in reducing their emissions with our sustainable offering that utilises the most efficient technologies.”
Metso Outotec Head of Grinding Business Line, Christoph Hoetzel, said that as comminution is the most energy-intensive step in mining, improving how rocks are ground and processed now and in the future is key to reducing industry’s carbon emissions.

“I encourage three collaboration actions through CEEC to accelerate our collective efforts for more energy and water efficient minerals: sharing case studies and knowledge, benchmarking and innovation,” he said. “Our combined learnings and operational successes can all help industry truly improve and accelerate the decarbonisation change.

“Visionary leaders are actively pushing towards what can be done better. Metso Outotec is keen to help communicate the business case for alternative grinding circuits and processing flowsheets. Our range of proven energy efficient solutions – which is the widest in the industry – allows a truly holistic approach considering efficiency, reliability and low operational costs. Such holistic approaches with innovative plant design and optimisation are vital to reduce mining’s footprint.”

Keogh commended Metso Outotec’s goals to accelerate eco-efficient minerals, noting its demonstrated track history of being a leader in comminution improvements.

Metso Outotec has previously been shared winners of the CEEC Medal twice.

In 2012, staff from Metso and Compañía Minera Antamina co-authored the paper ‘Optimisation and continuous improvement of the Antamina Comminution Circuit’, which won the inaugural 2012 CEEC Medal.

In 2020, Metso and Newmont Corp staff co-authored the paper ‘Reducing Energy and Water Consumption through Alternative Comminution Circuits’, winning the 2020 CEEC Medal for Operations.

Metso Outotec to provide copper smelting engineering, tech to PT Freeport’s Manyar project

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Metso Outotec has signed a major engineering and technology contract as well as licence agreements for the delivery of what it says is a landmark copper smelter complex to be built in Gresik, East Java, in Indonesia.

The project owner is PT Freeport Indonesia, with PT Chiyoda International Indonesia being the engineering, procurement and construction contractor. Four-fifths of the approximately €360 million ($424 million) contract has been booked in the company’s Metals’ September quarter order intake and the rest in Minerals’ September quarter order intake, it said.

Metso Outotec’s scope of delivery is based on the licensed Metso Outotec Flash Smelting, Flash Converting and Lurec® technology. It includes the design and supply of key process equipment and process control systems for the main areas of the smelter complex, the copper electrolytic refinery, the gas cleaning and sulphuric acid plant, the slag concentrator and the effluent treatment plant.

Metso Outotec has previously provided certain front-end engineering design and other advance engineering services for this 1.7 Mt/y copper concentrate smelter complex, which is expected to be commissioned in 2024. According to PT Freeport, the Manyar smelter will be the largest copper processing site in the world upon start up.

Pekka Vauramo, President & CEO, Metso Outotec, said: “Our joint efforts with Freeport Indonesia and Chiyoda will set a new standard for the copper smelter industry in fulfilling the strictest international environmental standards and efficiency requirements. We are very happy to work together to implement this game changing copper smelter.”

Jari Ålgars, President, Metals business area at Metso Outotec, added: “We have worked with Freeport Indonesia and Chiyoda for several years to ensure and select the best available process design and technologies for the Manyar project.”

Metso Outotec has delivered 51 Copper Flash Smelters around the world, with the company’s Copper Flash Smelting the most widely applied technology for copper smelting in the world, it said. The solution is also one of its Planet Positive solutions. Using this technology, Metso Outotec’s customers avoided more than 1.6 Mt of CO2 emissions in 2020, the company said.

Metso Outotec to sell recycling business as it focuses on ‘core’ synergies

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Metso Outotec has spelt out a three-pillar focus in a new strategy and financial targets update, saying it is looking to divest its Recycling business and concentrate its attention on the aggregates, minerals processing and metals refining industries.

The new strategy, focused on growth and improving profitability, was published on the same day as the company’s January-September 2020 interim review was released.

This showed orders received were 28% lower in the September quarter of 2020 than the same period a year ago, at €2.9 billion ($3.4 billion), while the company’s adjusted EBITA and operating profit were down 29% and 63% year-on-year at €109 million and €47 million, respectively. President and CEO, Pekka Vauramo, said the COVID-19 pandemic continued to have an impact on the company’s end markets during the quarter, with the most significant impacts resulting from limited access to customer sites and slow decision making related to new project and modernisation orders and non-critical services.

With the merger of Metso and Outotec having completed on June 30, Metso Outotec has now had the chance to evaluate the opportunities within the enlarged group, which it spelt out in this update.

The company said it aims to become a “top-tier supplier of products, technologies and services in the aggregates and minerals industries and a top financial performer”, adding that its defined purpose is: “enabling sustainable modern life”.

Against this remit, the company said its foundation for implementing its new strategy and achieving its goals are based on the following factors:

  • Comprehensive product and service offering as well as process expertise throughout the customers’ value chain;
  • Extensive installed base and a strong brand;
  • Strong aftermarket presence and know-how close to customers; and
  • Industry-leading, sustainability-focused technology, research and product development expertise.

When it comes to growth, the company said its key customer segments are aggregates, minerals processing, and certain areas of metals refining.

“The company’s target markets offer attractive growth prospects and have significant potential for further growth and development of the aftermarket business,” it said. “Several recognised global megatrends, like urbanisation, infrastructure projects, electrification of societies, and climate change mitigation, will support market growth.”

Metso Outotec’s primary target in the selected segments is to develop its product and service business by leveraging its process expertise. “In order to reduce business risks and to improve profitability, extensive project deliveries will be limited when they include other than the company’s own technology and expertise,” it said.

The company laid out four priority areas of strategy implementation including: integration and financial performance; customer centricity; sustainability; and performance culture.

These priority areas are visible in each business area’s action plans and their realisation is measured and managed with several performance indicators, it added.

Vauramo, who has also agreed to lead the company until the end of 2023, said: “Metso Outotec’s new strategy is coherent and clear, and it will help us to become an industry-leading company in customer satisfaction, sustainability and financial performance. Based on a careful assessment of our businesses and the opportunities they offer, we have selected the areas we will focus on.

“The aggregates and minerals industries have clear roles at the core of our strategy. Global megatrends are driving their development, and we are well positioned to offer products, solutions and services that satisfy customer demands.

“In the Metals business, we will initiate a restructuring and turnaround program to improve financial performance and ensure more granular management of the various businesses and resources. This work will lead us to scope our offering and resources in a more efficient way.”

As a result of this strategy work, Metso Outotec has decided to divest its recycling business. While the circular economy and other market drivers offer attractive opportunities for developing this business, Vauramo said it has limited synergies with the core of the new Metso Outotec.

“This being the case, we have started preparations to divest the business,” he said. “I am confident that we will reach a solution that is good for Metso Outotec as well as for the Recycling business and its personnel.”

The Recycling business sells products and services for metal and waste recycling. Its sales in 2019 were €156 million, and it reported an adjusted EBITA margin of around 6%.

Speaking of synergies, Vauramo updated investors on its plan to generate total cost synergies of €120 million by the end of 2021 through the merger process.

At the end of the September quarter, it had reached an annual run rate of €31 million in cost synergies, it said. This compares with the year-end estimate of €50 million.

“In addition, we were able to realise the first revenue synergies during the quarter by capitalising on cross-selling opportunities in the services business,” Vauramo said.

As part of the strategy work, Metso Outotec’s Board of Directors has approved the following financial targets:

  • Adjusted EBITA margin of >15% over the cycle;
  • Maintaining an ‘investment-grade’ credit rating;
  • Dividend payout of at least 50% of earnings per share; and
  • Progress in sustainability in alignment with the 1.5°C commitment.

“The financial targets underline our intention to improve the company’s profitability and drive sustainable solutions in our industry,” Vauramo said. “The most significant factors in this development are the benefits related to integration and synergies, the businesses’ own profitability improvement actions, increasing market shares, and developing our business portfolio. At the same time, we will strengthen the company’s balance sheet by using cash from operations to reduce indebtedness.

“For shareholders, Metso Outotec’s ambition is to be a good payer of dividends.”

With Metso Outotec already outlining its “1.5°C journey”, with targets validated by the Science Based Targets initiative, the company is well on its way to making progress on this front.

In the strategy update, the company said this will be implemented through a focus on sustainable offerings and innovations, and by being a responsible and trusted partner.

Metso Outotec has set targets to reduce the emissions of its own operations by 50% by 2030, compared with the 2019 baseline, and to reduce the emissions of logistics by 20% by 2025. It is also targeting that 30% of the supplier spend by the end of 2025 is with partners who have set a CO2 target.

“Metso Outotec will continuously develop sustainable solutions for its customers, with a focus on energy and emission efficiency, water efficiency, circular solutions and safety,” it said. “Over 90% of the company’s R&D projects are targeted to have energy, emissions or water targets.”

Metso Outotec to flex minerals processing muscles following merger

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The first public showing from executives of the new Metso Outotec has highlighted just how big the new group will be within the mineral processing ecosystem.

Circa-15,000 employees, some 5,000 service representatives, around €4.2 billion ($4.7 billion) of sales in 2019…the stats are impressive.

The minerals sector dominates within this, representing 61% of 2019 sales.

It will cover everything from comminution through to tailings management, meaning the company will be able to touch most parts of the process not involving ‘mining’ itself.

Coming just a day after the merger was completed, Pekka Vauramo, President and CEO, and Eeva Sipilä, CFO and Deputy CEO, understandably did not go into too much detail on the webcast about what the year-long merger approval process had shown the executive team in terms of their initial cost synergy estimates. Investors will have to wait until August for more detail on that.

Last year when announcing the deal, the companies said they expected 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.

Vauramo explained on the webcast that it was the services, minerals and consumables business areas where there was most overlap between the two entities.

But it appears there will be more than just cost advantages to the tie-up.

Vauramo said: “We are complementing each other’s offerings and activities so well that we have many cross-selling opportunities if we speak about what Outotec can do for Metso’s part and what Metso can do for Outotec’s part.”

Sipilä added to this, saying there were complementary areas within the services sector ripe for these type of synergies.

With such a huge offering, it is hard to pick out areas of focus for Metso Outotec, but sustainability has been front and centre for both Metso and Outotec in the recent past. Unsurprisingly, it will be important for the combined group.

On climate change, Vauramo said: “We are really on the spot with that one to develop more efficient processes, with higher recoveries, better quality, less water consumption or full recirculation of water.”

By taking a more “holistic look” at the whole processing flowsheet, the company will be able to ensure less energy is used throughout the entire process, leading to lower emissions. Any water that is consumed will be recycled where possible, according to Vauramo.

This also implies tailings management will be a cornerstone for Metso Outotec, leveraging both companies’ expertise in filtration technology, alongside Outotec’s paste backfill capability, and other developments the two have made within the dry stacked tailings arena.

“Our expertise is in that process,” Vauramo said of tailings management. “That is where we want to be, and we want to further innovate that process.”

Digitalisation developments within the services area (which represents 56% of group sales) will also accelerate within the larger group.

Vauramo, referencing Metso’s experience during the last three-and-a-bit months, thinks remote monitoring opportunities will grow.

“The COVID virus has shown that the need for remote monitoring is really increasing,” he said. “It has shown many business cases for future remote monitoring needs.

“We have learnt that mines can operate at least temporarily – some over a longer period of time – with a reduced presence at site. But, for service reasons, we do need to know how the equipment performs.”

A third remote performance centre (previously called Metso Performance Center) was recently added to this digital offering through the redevelopment of a former Outotec premise in Espoo, Finland. This European location comes on top of the centres already opened in South America (Santiago, Chile) and Asia (Changsha, China).

It is the R&D part of the new entity that will help the company continue to innovate on this front and others; this is an area Vauramo believes the company can continue to lead on.

“Our R&D investments annually are €100 million,” he said. “That is more than anyone else in the industry.”

The company has 30 R&D centres, more than 8,000 patents and produces around 15 new innovations or products a year from this “mostly decentralised” platform.

Asked whether he expected this type of spending to continue into the future, he said: “€100 million makes just short of 2.5% of our combined sales. I would say we are in the right range (with that figure). Whether it should be 3%, or whether we continue with this approximately 2.5% of sales remains to be seen; it depends on our strategy and the opportunities we see.

“What I would say is that we will not hesitate to increase it (the spend) if we have the right opportunities.”

Metso and Outotec establish business areas and leaders ahead of merger completion

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With Metso and Outotec having recently cleared one of the final remaining hurdles towards merging the two companies, the future Metso Outotec Board of Directors has laid out the planned company structure and related executive team appointments.

The nominations will become effective after the closing of the partial demerger of Metso and the combination of Metso’s Minerals business and Outotec, which is currently expected to take place on June 30, 2020, subject to receipt of all required regulatory and other approvals, including competition clearances – which the companies made significant headway on recently.

The companies said: “Combined, the future Metso Outotec will be a forerunner in sustainable technologies, end-to-end solutions and services for the minerals processing, aggregates, metals refining and recycling industries globally. The new organisation is designed to leverage the strengths and expertise of both companies.”

Metso Outotec will consist of the following six business areas:

  • Aggregates, providing crushing and screening equipment for the production of aggregates;
  • Minerals, providing equipment and full plant solutions for minerals processing, covering comminution, separation and pumps;
  • Metals, providing processing solutions and equipment for metals refining and chemical processing;
  • Recycling, providing equipment and services for metal and waste recycling;
  • Services, providing spare parts, refurbishments and professional services for mining, metals and aggregates customers; and
  • Consumables, providing a comprehensive offering of wear parts for mining, metals and aggregates processes.

The boards have also made some significant decisions on the key personnel that will lead these business units.

Markku Simula will become President of the Aggregates business unit. Simula currently serves as President, Aggregates Equipment at Metso.

Recently appointed Metso Mining Equipment President, Stephan Kirsch, will become President of the combined Minerals business area.

Jari Ålgars, currently CFO at Outotec, will become President of Metals.

Uffe Hansen, who is currently President of Recycling at Metso, will become President of Recycling at Metso Outotec.

Metso’s Sami Takaluoma will retain his President of the Consumables business area post at the new merged entity.

Markku Teräsvasara, who currently serves as the President and CEO at Outotec, will take on the President, Services and Deputy CEO role at Metso Outotec.

In addition to the business area president appointments, the following function heads and executive team members have been appointed:

  • Eeva Sipilä, CFO and Deputy CEO. Her appointment was announced on July 4, 2019. She currently serves as the CFO and Deputy CEO at Metso;
  • Nina Kiviranta, General Counsel. She currently serves as General Counsel at Outotec;
  • Piia Karhu, Senior Vice President, Business Development. She currently serves as Senior Vice President, Customer Experience at Finnair. She will join the company on July 1, 2020; and
  • Hannele Järvistö, Senior Vice President, Human Resources (interim). She currently serves as Senior Vice President, Human Resources (interim) at Metso. “This appointment is valid until a new position-holder has been selected and will start in this role,” the company said.

All the function heads and executive team members will report to Metso Outotec’s future President and CEO, Pekka Vauramo (pictured), the company said.

Reflecting on these changes, Vauramo said: “Above all, Metso Outotec will be strong in sustainability. Our extensive combined offering for minerals processing, from equipment to a broad range of services, will help our customers improve their profitability and lower their operating costs and risks, while at the same time reduce the consumption of energy and water.

“We at Metso Outotec understand our customer’s world and the daily challenges they face. Together, we will partner for positive change.”

Metso breaks records as it looks forward to more growth

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It was a record year in terms of profitability for Metso in 2019; a year that saw the minerals processing company make several strategic decisions to fundamentally change its group structure.

Orders received across the group increased 5% to €3.7 billion ($4.1 billion), with sales growing 15% to €3.635 billion. Adjusted EBITA rose from €369 million in 2018 to €474 million (13% of sales) in 2019, while operating profit jumped to €418 million from €351 million.

Metso President and CEO, Pekka Vauramo, said 2019 was in many ways historical and transformational for the company.

“It also marked a record in our financial performance, as our sales increased in both segments and our profitability was higher than ever in the company’s history,” he said.

The company also launched some major new products – including the Metso Truck Body and the VPX filter – in addition to publishing the Metso Climate Program, which aims for notable reductions in emissions.

The year will be remembered for two major strategic decisions from Metso.

“The first was the acquisition of McCloskey, a Canadian supplier of mobile aggregates crushers and screens,” Vauramo said. “After the closing of the acquisition in October, Metso’s offering strengthened in the mobile aggregates equipment market, which is estimated to see the industry’s fastest-growing demand.”

“The second and truly transformative step was the decision related to the partial demerger of Metso, after which Metso’s Minerals business will be combined with Outotec to create Metso Outotec, a unique company in the minerals, metals and aggregates industries,” Vauramo said.

At the same time as this, the company took the decision to allow its valves business to continue as an independent listed company named Neles.

Vauramo said: “We are confident that, as a result of this transaction, both companies will be well-positioned to grow and create value for our customers and other stakeholders.”

Shareholders of both Metso and Outotec approved the transaction in October at respective meetings and internal preparations have proceeded according to plan, Vauramo said.

The completion of the transaction still requires approvals from the competition authorities in various markets, but according to the company’s estimate, closing should take place on June 30, 2020.

Metso switches up pumps and mineral services heads following Keto’s departure

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Metso has made changes to its minerals services and pumps business areas after Mikko Keto, President of the two segments, terminated his employment with the company.

Giuseppe Campanelli has been appointed President of the Minerals Services business area and a member of Metso’s Executive Team from January 2 onwards. Previously he has been a member of the Minerals Services business area management team heading Professional Services, according to Metso.

Kalle Sipilä has been appointed President of the Pumps business area and a member of Metso’s Executive Team, also from January 2. Sipilä was previously in charge of the Pumps business area (from an operational point of view) in addition to his role as head of Finance and Business Control of the Minerals Services business area.

Metso’s President and CEO, Pekka Vauramo, said: “I want to congratulate Giuseppe and Kalle for their appointments and wish them welcome in the Executive Team. At the same time, I want to thank Mikko for successfully driving profitable growth while heading the Minerals Services business area.”

Metso is currently going through the process of merging with Outotec in a transaction that will create a major mineral processing powerhouse.

Metso’s GHG targets recognised as ‘science-based’

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Metso’s greenhouse gas (GHG) emission targets have won the approval of the Science Based Targets initiative (SBTi), demonstrating the mining equipment and service provider is doing its fair share in trying to achieve the global climate change goals as set out in the 2015 Paris Agreement.

The GHG targets are part of Metso’s Climate Program and, the company says, are applicable to all relevant emission sources: production, procurement, inbound and outbound transportation as well as the use of Metso’s products.

The SBTi is a collaboration between CDP, the United Nations Global Compact, World Resources Institute and the World Wide Fund for Nature. The initiative aims at promoting science-based target setting and driving down GHG emissions.

The initiative is tied to the 2015 Paris Agreement, which saw 195 of the world’s governments commit to prevent dangerous climate change by limiting global warming to below 2°C.

Metso says it is one of the few corporations in its field to join SBTi in the efforts to prevent global warming.

As a scope 1 and 2 GHG target, Metso has committed to a 25% reduction in carbon emissions in production by 2030. This is achievable by investing in renewable energy and improving the energy efficiency of the production processes, the company said.

“Metso demands sustainability not only of its own production, but also 30% of its suppliers in terms of spend are required to set science-based emission targets by 2024,” the company said.

By streamlining transportation routes and optimising warehouse locations, Metso aims for a 20% reduction in transportation emissions by 2025 (scope 3 GHG emissions target).

Through extensive research and development work, Metso has been able to significantly reduce the energy consumption in customer processes, it said. To continue this development, the company is aiming for a 10% reduction in GHG emissions in the most “energy-intensive customer processes” using Metso products by 2025.

“This is further reinforced by the demanding energy-efficiency targets in all Metso R&D projects. As supportive actions, Metso will also offset flight emissions by 100% by 2021 and continue to find new ways to decrease emissions, for example, in offices,” it said.

Metso President and CEO, Pekka Vauramo, said: “We are extremely happy about the ratification of our science-based CO2 emissions targets.

“Our Climate Program is an important step in our goal of reducing greenhouse gas emissions. It is also an essential element in Metso being a responsible and trusted partner to our customers. We aim to improve our customers’ productivity in a sustainable manner, and we involve all our stakeholders in reaching this goal.”

For Metso, Scope 1 emissions are generated from fuels used in production, Scope 2 emissions are generated from the purchased energy and Scope 3 emissions are generated from transportation, procurement, travelling and product use, it said.

In 2018, Metso’s emissions clocked in at over 1 Mt of CO2, including 655,732 t from purchased goods and services, 136,968 t related to production, 161,629 t in “upstream” transportation, 77,821 t in “downstream” transportation and 22,256 t in business flights.

At the same time, the emissions saved in Metso product use in 2018 amounted to more than 1.07 Mt of CO2 through its energy-efficient grinding solutions HRC™, Vertimill® and SMD (stirred media detritor).

Metso’s Vauramo sees positives in mining equipment pipeline

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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.”