2013-10-24 07:30:00 CEST
2013-10-24 07:31:29 CEST
REGULATED INFORMATION
Wärtsilä - Interim report (Q1 and Q3)
WÄRTSILÄ INTERIM REPORT JANUARY-SEPTEMBER 2013
Wärtsilä Corporation INTERIM REPORT 24 October 2013 at 8.30 a.m. local time
NET SALES AND PROFITABILITY DEVELOPED WELL IN A CHALLENGING MARKET ENVIRONMENT
This release is a summary of Wärtsilä's Interim Report January-September 2013.
The complete report is attached to this release as a pdf-file. It is also
available at http://www.wartsilareports.com/en-US/2013/q3/frontpage/ and on the
company website at www.wartsila.com.
THIRD QUARTER HIGHLIGHTS
- Order intake decreased 14% to EUR 1,097 million (1,275)
- Net sales increased 11% to EUR 1,209 million (1,087)
- Book-to-bill 0.91 (1.17)
- Operating result before non-recurring items EUR 138 million, or 11.4% of net
sales (EUR 113 million or 10.4%)
- EBITA EUR 146 million, or 12.1% of net sales (EUR 122 million or 11.2%)
- Earnings per share EUR 0.48 (0.38)
- Cash flow from operating activities EUR 139 million (121)
HIGHLIGHTS OF THE REVIEW PERIOD JANUARY-SEPTEMBER 2013
- Order intake decreased 2% to EUR 3,520 million (3,583)
- Net sales increased 2% to EUR 3,243 million (3,191)
- Book-to-bill 1.09 (1.12)
- Operating result before non-recurring items EUR 319 million, or 9.8% of net
sales (EUR 328 million or 10.3%)
- EBITA EUR 343 million, or 10.6% of net sales (EUR 354 million or 11.1%)
- Earnings per share EUR 1.24 (1.09)
- Cash flow from operating activities EUR 261 million (-34)
- Order book at the end of the period decreased by 3% to EUR 4,568 million
(4,724)
BJÖRN ROSENGREN, PRESIDENT AND CEO:"Our operations developed in line with our expectations during the third
quarter. Net sales grew by 11% to EUR 1,209 million and profitability was
11.4%. With better visibility on net sales development, we specify our sales
growth guidance to 0-5%, while our profitability estimate remains unchanged at
around 11%.
Uncertainties in the global economy and fluctuations in emerging market
currencies have caused power plant customers to delay decision-making, which has
impacted our overall order intake development. In the marine markets, we see
good activity across all the main vessel segments. The focus on fuel efficiency
and competitive newbuilding prices are supporting investments in the merchant
segment, while offshore markets remain active. Services net sales development
was steady, which reflects the overall stability of the service market. Wärtsilä
signed several long-term service agreements during the quarter, and we see
further opportunities in this area."
WÄRTSILÄ'S PROSPECTS FOR 2013 REVISED
Wärtsilä specifies its net sales prospects for 2013. Based on the current order
book, net sales for 2013 is expected to grow by 0-5%. Previously, Wärtsilä
estimated that its net sales would grow by 0-10%. Wärtsilä reiterates its
expectations that operational profitability (EBIT% before non-recurring items)
will be around 11%.
KEY FIGURES
Re- Re- Re-
7-9/ stated(3) 1-9/ stated(3) stated(3)
MEUR 2013 7-9/2012 Change 2013 1-9/2012 Change 2012
-------------------------- -------------- --------
Order intake 1 097 1 275 -14% 3 520 3 583 -2% 4 940
Order book at the
end of the period 4 568 4 724 -3% 4 492
Net sales 1 209 1 087 11% 3 243 3 191 2% 4 725
Operating result
(EBITA)(1) 146 122 20% 343 354 -3% 552
% of net sales 12.1 11.2 10.6 11.1 11.7
Operating result
(EBIT)(2) 138 113 22% 319 328 -3% 517
% of net sales 11.4 10.4 9.8 10.3 10.9
Profit before
taxes 126 99 326 291 453
Earnings/share,
EUR 0.48 0.38 1.24 1.09 1.72
Cash flow from
operating
activities 139 121 261 -34 153
Net interest-
bearing debt at
the end of the
period 534 698 567
Gross capital
expenditure 84 462 513
Gearing 0.31 0.42 0.32
-------------------------------------------------------------------------------
(1 )EBITA is shown excluding non-recurring items of EUR 10 million (16) and
intangible asset amortisation related to acquisitions of EUR 24 million (26)
during the review period January-September 2013. During the third quarter, non-
recurring items amounted to EUR 8 million (3) and intangible asset amortisation
related to acquisitions to EUR 8 million (8).
(2 )EBIT is shown excluding non-recurring items.
(3) Figures have been restated due to changes in pension accounting (IAS 19
Employee benefits).
MARKET OUTLOOK
The general macro-economic uncertainty and the slow global growth projections
continue to impact power generation markets. Based on weaker global ordering
statistics in the first half-year, the overall market for natural gas and liquid
fuel based power generation in 2013 is expected to decline. Ordering activity
remains focused on the emerging markets, which continue to invest in new power
generation capacity. In the OECD countries, there is still pent-up power sector
demand, mainly driven by CO2 neutral generation and the ramp down of older,
mainly coal-based generation.
Our outlook for the shipping and shipbuilding market in 2013 has improved. The
lively ordering of product tankers, large containerships and gas carriers is
expected to continue during the rest of the year. Furthermore, the offshore
sector is expected to remain active, although with a different contracting mix
that favours mobile drilling units and FPSOs more. Current emission regulations
and the focus on fuel efficiency create interesting opportunities in gas fuelled
vessels and environmental solutions. Financing is expected to remain difficult,
but some signs of easing can be seen across the industry. Overall, the
contracting mix is expected to be more balanced than in 2012, with activity in
all major vessel segments.
The overall service market outlook remains stable. An increase in the installed
base partly balances the slower service demand for older installations and the
continued focus of merchant marine customers on reducing operating expenses. The
outlook for services to the offshore industry and gas fuelled vessels remains
positive. Demand for services in the power plant segment continues to be good,
with opportunities for long-term agreements. The outlook for the Middle East and
Asia remains slightly more positive, supported by interest in power plant
related services. The outlook is also good in the Americas and in Africa.
ANALYST AND PRESS CONFERENCE
An analyst and press conference will be held on Thursday 24 October 2013 at
10.00 a.m. Finnish time (8.00 a.m. UK time), at the Wärtsilä headquarters in
Helsinki, Finland. The combined web- and teleconference will be held in English
and can be viewed on the internet at the following address:
http://wcc.webeventservices.com/r.htm?e=696187&s=1&k=12F00E6214B945BF9BFD86B0D5D
F79B3.
To participate in the teleconference please register at the following address:
http://emea.directeventreg.com/registration/79611431. You will receive dial-in
details by e-mail once you have registered. If problems occur, please press *0
for operator assistance. Please use *6 to mute the sounds from your phone during
the teleconference and the same code to unmute.
An on-demand version of the webcast will be available on the company website
later the same day.
For further information, please contact:
Marco Wirén
Executive Vice President & CFO
Tel: +358 10 709 5640
marco.wiren@wartsila.com
Natalia Valtasaari
Director, Investor Relations
Tel: +358 40 187 7809
natalia.valtasaari@wartsila.com
For press information, please contact:
Atte Palomäki
Group Vice President, Communications & Branding
Tel: +358 40 547 6390
atte.palomaki@wartsila.com
Wärtsilä in brief
Wärtsilä is a global leader in complete lifecycle power solutions for the marine
and energy markets. By emphasising technological innovation and total
efficiency, Wärtsilä maximises the environmental and economic performance of the
vessels and power plants of its customers. In 2012, Wärtsilä's net sales
totalled EUR 4.7 billion with approximately 18,900 employees. The company has
operations in nearly 170 locations in 70 countries around the world. Wärtsilä is
listed on the NASDAQ OMX Helsinki, Finland.
www.wartsila.com
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