For me, this is clear evidence that the recovery continued in our customer industries. As I said, our order intake during the first quarter was strong €1.7 billion. All businesses did well, but especially want to highlight the strong order intake in paper and fiber technology.Our net sales were about €1.4 billion, up by 10% from second quarter last year. Net sales also picked up from €1.2 billion in the first quarter with strong contribution from mining and paper businesses. Before moving to profitability analysis, I want to mention that we have introduced EBITDA before nonrecurring items as a new financial indicator, additional information for those interested in that kind of information. Our idea is to give better view on underlying operational performance and to improve comparability. EBITDA before nonrecurring items was €125 million or 9.1% of net sales in the second quarter. Our gross profit margins were up because increased capacity utilization rates. On the other hand, earnings were somewhat negatively affected as the SG&A expenses have increased, reflecting the increased demand and strengthening of our sales, marketing and other resources. We expect this SGAs on net sales to start to decrease in coming quarters as the net sales are estimated to grow. In addition, we will continue naturally by control of our costs. I also want to highlight our strong free cash flow during the second quarter, €164 million, as you can see from this slide. So if we now take a look at second quarter development by business segment, first mining and construction technology, net sales in the second quarter were €541 million, up by 2% from the comparison period, and EBITDA before nonrecurring items has been positive this time for second quarter, or €64.8 million and margin improved to 12%. We have solid evidence of improving trading environment and positive volume leverage. In the second quarter, we had about €32 million, one of gains from intellectual property right settlements, which together with some smaller non-recurring items improved the reported EBITDA margin to 18%. Intellectual property rights are important as one can see from this figure, they are important to us, and we definitely will continue to be active in protecting our intellectual property rights globally also in the future.
If you then take a look at the business lines in mining and construction technology, you can say that the underlying operational profitability during the first-half of this year was roughly in par with the comparison period both in services business, as well as in equipment and systems business. In energy and environmental technology, net sales were €334 million, down by 6%. EBITDA before nonrecurring items was €29.3 million and margin 8.8%.EBITDA in the first half of this year improved in the comparison period, clearly on power business due to successful project execution, and weakened in automation and recycling businesses, mainly as a result of our significantly lower delivery volumes. For paper and fiber technology, net sales grew by 38% and were €494 million, a bit more than €70 million that came from our Fabrics, or Tamfelt business, out of that figure. The growth in general came from all business lines. EBITDA before non-recurring items was €36 million and margin 7.3%. Clear improvement in the profitability was due to strong volume growth and more streamlined structure. I must say, I’m especially pleased with the significant profitability improvement in our paper on fiber technology since our people have been really working hard, extremely hard to improve profitability in the demanding environment of paper and pulp. Read the rest of this transcript for free on seekingalpha.com