Metso said that although there are signs of gradual economic recovery, we estimate that our business environment will continue to be demanding during the rest of the year and first half of 2010.

Metso said that “Our customers are still being cautious in their investment decisions, which particularly affects our equipment sales and project business. We estimate that our customers’ capacity utilization rates are slowly improving assuming that the overall positive momentum in the global economy will continue. We estimate that this will have positive, gradual impact first in our services business.”

It said that “Mining companies have made substantial cuts in their investment plans over the year compared with recent years and are still ready to curtail their production if needed. However, some mining companies have upgraded their investment plans for 2010, but it remains to be seen when this will start to have an impact on new equipment market. Due to our strong product and services offering, as well as our large installed equipment base, which has grown significantly over the last few years, the demand for our mining replacement and services business is expected to continue satisfactory. In the construction industry, we estimate that the demand for equipment relating to aggregates production will be weak. Many countries have introduced stimulus measures relating to infrastructure development which we expect to have a positive effect on the demand for our construction industry products in the long term, but which, for the present, have had little effect. We estimate that the demand for our services offering in the construction industry will be satisfactory.”

Metso said that “We estimate that the demand for power plants utilizing renewable energy sources will be satisfactory in Europe and North America. Many countries have initiated plans to increase the use of renewable energy sources. This is expected to support the demand for power plants utilizing biomass and waste. However, limited availability of financing may delay decision-making in projects. We estimate that the demand for our automation and flow control products will be satisfactory. The demand for metals recycling equipment is expected to be weak, owing to the low price of scrap metal and reduction in steel production. Demand for the services business in Energy and Environmental Technology is expected to be satisfactory.”