2011-04-20 07:30:00 CEST
2011-04-20 07:31:01 CEST
REGULATED INFORMATION
Wärtsilä - Interim report (Q1 and Q3)
WÄRTSILÄ INTERIM REPORT JANUARY- MARCH 2011
Wärtsilä Corporation INTERIM REPORT 20 April 2011 at 8.30 a.m. local time
PROFITABLE GROWTH MARKED THE START OF THE YEAR
FIRST QUARTER HIGHLIGHTS
- Net sales increased 18% to EUR 1,083 million (922)
- Operating result EUR 113 million, or 10.4% of net sales (EUR 94 million and
10.2%)
- Cash flow from operating activities, EUR 133 million (181)
- Earnings per share amounted to EUR 0.38 (0.34)
- Order intake grew by 11% to EUR 979 million (881)
The operating result and earnings per share are shown excluding nonrecurring
items. Wärtsilä recognised EUR 2 million (44) of nonrecurring items related to
restructuring measures during the review period.
OLE JOHANSSON, PRESIDENT AND CEO:"I am pleased with the start of the year that saw increased sales and solid
profitability. As expected the Services business showed growth as a result of
our customers increasing the utilisation of their assets. The Power Plants
markets continued on a good level with an increasing interest in natural gas
based power generation. In Ship Power we also see further natural gas related
prospects, as well as notable activity in the offshore segment. We are seeing
signs, however, of uncertainty in the global business environment and some
customers seem hesitant in decision making. Our restructuring measures have
resulted in improved efficiency and competitiveness and provide a good basis for
profitable growth in 2011."
WÄRTSILÄ'S PROSPECTS FOR 2011 REITERATED
Wärtsilä expects its net sales for 2011 to grow by 3-5% and operational
profitability (EBIT% before nonrecurring items) to be around 11%.
ANALYST AND PRESS CONFERENCE
An analyst and press conference will be held on Wednesday 20 April 2011, at
10.45 a.m. Finnish time (8.45 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://storm.zoomvisionmamato.com/player/wartsila/objects/szrhjvp1.
To participate in the teleconference please register at the following address:
http://www.yourconferencecentre.com/r.aspx?p=1&a=DyyfcqKGHISMom.
You will receive dial-in details once you have registered. If you wish to ask
questions during the teleconference, press the *-button followed by the 1-button
on your phone to register for a question and the # -key to withdraw a question.
The event name is: Wärtsilä Interim Report Q1 2011. Please be ready to state
your details and the name of the conference to the operator. If problems occur,
please press the *-button followed by the 0-button.
An on-demand version of the webcast will be available on the company website
later the same day.
For further information, please contact:
Raimo Lind
Executive Vice President & CFO
Tel: +358 10 709 5640
raimo.lind@wartsila.com
Pauliina Tennilä
Director, Investor Relations
Tel: +358 40 570 5530
pauliina.tennila@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 2010, Wärtsilä's net sales
totalled EUR 4.6 billion with approximately 17,500 employees. The company has
operations in 160 locations in 70 countries around the world. Wärtsilä is listed
on the NASDAQ OMX Helsinki, Finland.
INTERIM REPORT JANUARY-MARCH 2011
This interim report is unaudited. All share related financial ratios and their
comparison figures have been calculated based on the new amount of shares.
REVIEW PERIOD JANUARY - MARCH 2011 IN BRIEF
MEUR 1-3/2011 1-3/2010 Change 2010
Order intake 979 881 11% 4 005
Order book 31 March 3 669 4 330 -15% 3 795
Net sales 1 083 922 18% 4 553
Operating result 113 94 21% 487
% of net sales 10.4% 10.2% 10.7%
Profit before taxes 107 49 548
Earnings/share, EUR 0.38 0.34 1.68
Cash flow from operating activities 133 181 663
Net interest-bearing debt
at the end of the period -17 410 -165
Gross capital expenditure 19 15 98
The operating result and earnings per share in the table above are shown
excluding nonrecurring items. Wärtsilä recognised EUR 2 million (44) of
nonrecurring items related to restructuring during the review period.
MARKET DEVELOPMENT
SHIP POWER
Offshore and special vessel markets most active
During the first months of the year overall vessel ordering activity was at a
lower level than at the end of 2010. There was a slowdown in bulk carrier
orders. However, in the container segment a few owners have placed some
significant orders. As expected, activity continued at a good level in the
offshore and the more specialised tonnage markets. In the offshore market, the
demand for drill ships and platform supply vessels has been active and rising
oil prices are expected to drive that demand further.
During the review period, China and Korea continued to be the most important
shipbuilding countries - in number of vessels China was slightly bigger whereas
in terms of dead weight tonnage (DWT) Korea was slightly ahead. The Chinese
owners continued to place a high share of all new orders with the support of
Chinese funding. Growing shipbuilding nations, such as Brazil, were also active
and secured an increasing share of the orders.
Ship Power market shares
Wärtsilä's share of the market in medium speed main engines remained at 42% (42%
at the end of the previous quarter) and its market share in low speed main
engines decreased to 11% (13). In auxiliary engines, Wärtsilä's share was 3%
(4).
POWER PLANTS
Good demand from emerging markets
Market activity continued at a good level during the first quarter of 2011. The
demand was active for small and medium size natural gas based projects while
some larger investments were delayed. Industrial output increased in most
emerging markets, driving demand from independent power producers (IPP's),
utilities and industrial customers. The financial crisis led to the postponement
of investments for power generation in 2009 and 2010, and this is now creating
demand in several markets.
Power Plants market position
In 2010, the overall market for gas and liquid fuel based power generation was
approximately 57,000 MW. This includes all prime mover units of over 5 MW.
Wärtsilä's share represented 5.6% of the market. This makes Wärtsilä the fourth
largest supplier of gas and liquid fuel based power plants. With its unique
value proposition, Wärtsilä is continuously strengthening its position in the
gas based power plant market by capturing market share from other technologies.
SERVICES
The service market is showing signs of growth. The number of idle vessels was on
a lower level than during the previous year. However, the average speed of the
fleet has continued to decrease and the number of anchored vessels was still at
a high level. Power Plants customers continued to have a stable demand for
services. Both Ship Power and Power Plants customers are looking to ensure cost
effective and energy efficient operations and high reliability. This is evident
in the interest in various operation, maintenance and technical service
agreements.
ORDER INTAKE
The order intake for the review period totalled EUR 979 million (881), an
increase of 11%. In relation to the previous quarter Wärtsilä's total order
intake decreased 2% (EUR 1,003 million in the fourth quarter of 2010). The book-
to-bill ratio for the first quarter was 0.90 (0.96).
Ship Power's order intake for the first three months totalled EUR 173 million
(90), up 92%. Compared to the previous quarter, order intake was down 3% (EUR
178 million in the fourth quarter of 2010). During the first quarter, Wärtsilä
received a significant order for a ferry from the Finnish ship owner Viking
Line. The vessel will be the largest passenger vessel ever to operate on LNG.
Merchant segment orders represented 29% of the total orders during the first
quarter. The offshore segment continued to be active with a 27% share of total
orders, followed by Cruise & Ferry and Special vessels with 16% and 15%
respectively. The Navy segment represented a 7% share and Ship Design 6% share
of the total.
In January 2011, the company signed a turnkey contract with Containerships Ltd
Oy of Finland for retrofitting a Wärtsilä fresh water scrubber in order to
reduce sulphur emissions. This is Wärtsilä's first commercial marine scrubber
project for a main engine and the company is the first manufacturer to have been
awarded the IMO certificate for a marine scrubber by the classification
societies Det Norske Veritas and Germanischer Lloyd.
The order intake for Power Plants in the first quarter totalled EUR 253 million
(267), which was 5% less than for the corresponding period last year. Compared
to the previous quarter, the Power Plants order intake decreased 20% (EUR 317
million in the fourth quarter of 2010). During the first quarter, Wärtsilä
received several orders from Turkey, including an order for a 135 MW power plant
with seven Wärtsilä 18V50SG natural gas fuelled engines. The plant is scheduled
for completion in autumn 2011, and will supply power to the national grid. Other
important orders were received from St Barthelemy, India and Brazil. In the
Power Plants business, the timing of projects results in swings between
quarters.
The order intake for the Services business totalled EUR 551 million (522) in the
first quarter, a growth of 6% compared to the corresponding period in 2010.
Compared to the fourth quarter 2010, the order intake increased by 8% (EUR 510
million in the fourth quarter of 2010).
During the review period Wärtsilä signed its largest ever long-term marine
maintenance support agreement. The contract with Royal Caribbean Cruises Ltd
covers 29 vessels with an aggregated output of approximately 1,400 MW. The
maintenance support agreement contains a wide range of services, including
maintenance planning, spare parts logistics optimisation, development and
testing of engine components, fuel consumption optimisation, as well as an
advisory service for overhauls and workshop services.
Order intake by business
MEUR 1-3/2011 1-3/2010 Change 1-12/2010
Ship Power 173 90 92% 657
Power Plants 253 267 -5% 1 413
Services 551 522 6% 1 931
Order intake, total 979 881 11% 4 005
Order intake Power Plants
MW 1-3/2011 1-3/2010 Change 1-12/2010
Oil 260 97 168% 1 797
Gas 422 360 17% 1 377
ORDER BOOK
The total order book at the end of the review period stood at EUR 3,669 million
(4,330), a decrease of 15%.
The Ship Power order book stood at EUR 1,699 million (2,242), which is 24% lower
than at the same date last year. At the end of the review period, the Power
Plants order book amounted to EUR 1,204 million (1,392), a decrease of 14%. The
Services order book totalled EUR 766 million (696) at the end of the review
period, representing an increase of 10%.
Order book by business
MEUR 31 Mar. 2011 31 Mar. 2010 Change 31 Dec. 2010
Ship Power 1 699 2 242 -24% 1 825
Power Plants 1 204 1 392 -14% 1 299
Services 766 696 10% 671
Order book, total 3 669 4 330 -15% 3 795
NET SALES
Wärtsilä's net sales for January-March 2011 increased by 18% and totalled EUR
1,083 million (922). Ship Power's net sales increased by 6% and totalled EUR
294 million (278). Net sales for Power Plants totalled EUR 349 million (237), an
increase of 47%. Net sales from the Services business totalled EUR 439 million
(409), an increase of 7%. Of the total net sales, Ship Power accounted for 27%,
Power Plants for 32% and Services for 41%.
Of Wärtsilä's net sales for January-March 2011, approximately 74% was EUR
denominated, 9% USD denominated, with the remainder being split between several
currencies.
Net sales by business
MEUR 1-3/2011 1-3/2010 Change 1-12/2010
Ship Power 294 278 6% 1 201
Power Plants 349 237 47% 1 525
Services 439 409 7% 1 823
Net sales, total 1 083 922 18% 4 553
FINANCIAL RESULTS
The operating result before nonrecurring expenses totalled EUR 113 million (94)
for January-March 2011, which is 10.4% of net sales (10.2). Including
nonrecurring expenses, the operating result was EUR 111 million or 10.2% of net
sales. Wärtsilä recognised EUR 2 million (44) of nonrecurring expenses related
to the restructuring measures during the review period January-March 2011.
Financial items amounted to EUR -4 million (0). Net interest totalled EUR -2
million (-3). Dividends received totalled EUR 1 million (2). Profit before taxes
amounted to EUR 107 million (49). Taxes in the reporting period amounted to EUR
31 million (14). Earnings per share after non-recurring expenses were EUR 0.38
(0.16) and equity per share was 7.32 euro (6.94).
BALANCE SHEET, FINANCING AND CASH FLOW
Cash flow from operating activities for January-March 2011 totalled EUR 133
million (181). Net working capital at the end of the period totalled EUR 142
million (332). Advances received at the end of the period totalled EUR 620
million (EUR 616 million at the end of the previous quarter). Liquid reserves at
the end of the period amounted to EUR 619 million (252). Net interest-bearing
loan capital totalled EUR -17 million (410). Dividends totalling EUR 271 million
were paid during the first quarter.
Wärtsilä had interest bearing debt totalling EUR 618 million (682) at the end
of March 2011. The existing funding programmes include long-term loans of
EUR 553 million, unutilised Committed Revolving Credit Facilities totalling
EUR 550 million and Finnish Commercial Paper programmes totalling
EUR 700 million. The total amount of short-term debt maturing within the next
12 months is EUR 65 million.
The solvency ratio was 37.5% (36.4) and gearing was 0.00 (0.31).
CAPITAL EXPENDITURE
Gross capital expenditure in the review period totalled EUR 19 million (15),
which comprised EUR 5 million (1) in acquisitions and investments in securities,
and EUR 14 million (14) in intangible assets and property, plant and equipment.
Depreciation amounted to EUR 29 million (30).
Maintenance capital expenditure for 2011 will be in line with or slightly above
depreciation. Possible acquisition opportunities may affect capital expenditure
for the year.
RESTRUCTURING PROGRAMMES
Following the global financial crisis, Wärtsilä began the process of adapting
its activities through various restructuring measures with the aim of reducing
approximately 1,800 persons. To date the number of personnel has been reduced by
approximately 1,500.
When fully implemented, it is estimated that the reductions will decrease costs
by approximately EUR 130 million. Of these cost savings, about EUR 60 million
had materialised by the end of 2010. The remainder of the savings will gradually
materialise during 2011. Wärtsilä anticipates that the majority of these cost
savings will be permanent. The total nonrecurring costs related to the
restructuring will be approximately EUR 150 million, out of which EUR 115
million has been recognised by the end of 2010. During the review period,
Wärtsilä recognised EUR 2 million (44) of nonrecurring items related to the
restructuring measures. The remainder of the costs will be recognised during
2011.
PERSONNEL
Wärtsilä had 17,526 (18,410) employees at the end of March 2011. The average
number of personnel for January-March 2011 totalled 17,544 (18,481). Ship Power
employed 943 (1,048) people. Power Plants employed 799 (853) people, Services
11,024 (11,357) and Wärtsilä Industrial Operations 3,990 (4,697) people.
Of Wärtsilä's total employees, 19% (18) was located in Finland, 6% (8) in the
Netherlands and 30% (31) in the rest of Europe. The personnel employed in Asia
represented 32% (30), out of which 7% (7) were in China, in India 6% (6), in
Singapore 5% (5), and in the rest of Asia 15% (13).
MANUFACTURING
The set up for manufacturing controllable pitch propellers at the joint venture,
Wärtsilä CME Zhenjiang
Propeller Co. Ltd. in Zhenjiang, China, is proceeding according to plan. The
majority of the equipment
needed will be relocated from the Wärtsilä factory in Drunen. The inauguration
of the new factory and the
first deliveries are planned for the second quarter of 2011.
The activities in Wärtsilä's joint venture with Transmashholding in Russia are
also proceeding according to plan. The joint venture is preparing to manufacture
modern and multipurpose diesel engines to be used in shunter locomotives and for
various marine and power applications.
RESEARCH & DEVELOPMENT
As part of Wärtsilä's strategy to strengthen the company's leading position in
gas engine technology, the company has initiated a major project to further
develop its low speed engine portfolio to include gas engines, alongside its
leading portfolio of medium speed gas and dual fuel engines. Natural gas is
currently the alternative fuel offering the biggest potential in reducing
emissions while at the same time being commercially viable.
NEW PRODUCT LAUNCHES
Wärtsilä and Aker Solutions have signed an agreement to jointly develop a new
and environmentally sound concept for offshore wind farm installation vessels.
Wärtsilä will provide the ship design, electrical power generation, propulsion
machinery and high-end automation, whilst Aker Solutions will supply the jacking
system. Wärtsilä, together with Aker Solutions, will also offer a 24/7 global
support service for maintenance, repairs, and component supply to the vessels.
The Wärtsilä engines to be used will be dual fuel engines and able to operate on
liquefied natural gas (LNG).
SUSTAINABLE DEVELOPMENT
Wärtsilä is well positioned to reduce the use of natural resources and
emissions, thanks to its various technologies and specialised services.
Wärtsilä's R&D efforts continue to focus on the development of advanced
environmental technologies and solutions. The company is committed to supporting
the UN Global Compact and its principles with respect to human rights, labour,
the environment and anti-corruption. Wärtsilä's share is included in several
sustainability indexes.
In April, Wärtsilä entered into co-operation with Crisis Management Initiative,
an independent Finnish non-profit organisation led by Nobel Peace Prize laureate
Martti Ahtisaari. As lead partner, Wärtsilä supports the activities of CMI in
conflict resolving and sustainable peace building through partnership programmes
in selected areas across the globe.
CHANGES IN MANAGEMENT
Wärtsilä's Board of Directors has appointed Mr Björn Rosengren M.Sc. (Tech.),
born 1959, as the new President and CEO of Wärtsilä Corporation, with effect
from 1 September 2011. Mr Rosengren will succeed Mr Ole Johansson, who will, at
that time, exercise his right to retire at the age of 60.
SHARES AND SHAREHOLDERS
The shares issued in the free share issue approved by Wärtsilä Corporation's
Annual General Meeting on 3 March 2011 were entered in the share register on 8
March 2011. The total amount of Wärtsilä shares increased to 197,241,130, as
shareholders were issued one new share for each old share. The new shares became
subject to public trading as of 9 March 2011.
The figures in the table below have been adjusted to reflect the increased
number of shares.
SHARES ON THE HELSINKI EXCHANGE
31 March 2011 Number of Number of Number of shares traded
shares votes 1-3/2011
--------------------------------------------------------------------------------
WRT1V 197 241 130 197 241 130 43 265 553
1 Jan. -31 March 2011 High Low Average 1) Close
--------------------------------------------------------------------------------
Share price 29.55 23.94 27.02 27.55
1) Trade-weighted average price
31 Mar. 2011 31 Mar. 2010
----------------------------------------------------------------------
Market capitalisation, EUR 5 433 3 698
million
Foreign shareholders 49.4% 46.4%
FLAGGING NOTIFICATIONS
During the review period, Wärtsilä was informed of the following changes in
ownership:
On 5 January 2011, BlackRock, Inc. increased its holding in Wärtsilä
Corporation. Following the transaction BlackRock, Inc owned 4,941,593 shares or
5.01% of Wärtsilä's share capital and total votes.
DECISIONS TAKEN BY THE ANNUAL GENERAL MEETING
Wärtsilä's Annual General Meeting held on 3 March 2011 approved the financial
statements and discharged the members of the Board of Directors and the
company's President & CEO from liability for the financial year 2010. The
Meeting approved the Board of Directors' proposal to pay a dividend of EUR 1.75
per share and an extra dividend of EUR 1.00 per share, totalling EUR 2.75 per
share. The dividend was paid on 15 March 2011.
The Annual General Meeting decided that the Board of Directors shall have nine
members. The following were elected to the Board: Ms Maarit Aarni-Sirviö, Mr
Kaj-Gustaf Bergh, Mr Alexander Ehrnrooth, Mr Paul Ehrnrooth, Mr Lars Josefsson,
Mr Bertel Langenskiöld, Mr Mikael Lilius, Mr Markus Rauramo and Mr Matti Vuoria.
The firm of public auditors KPMG Oy Ab were appointed as the company's auditors
for the year 2011.
Free share issue
The Annual General Meeting decided to approve the free share issue in accordance
with the proposal of the Board of Directors. The free share issue was
implemented by applying the pre-emptive right of the shareholders so that for
each old share one new share was issued. Thereby a total of 98,620,565 new
shares were issued. The new shares were registered in the trade register on 8
March 2011.
Organisation of the Board of Directors
The Board of Directors of Wärtsilä Corporation elected Mikael Lilius as its
chairman and Matti Vuoria as the deputy chairman. The Board decided to establish
an Audit Committee, a Nomination Committee and a Remuneration Committee. The
Board appointed from among its members the following members to the Committees:
Audit Committee:
Chairman Markus Rauramo, Maarit Aarni-Sirviö, Alexander Ehrnrooth, Bertel
Langenskiöld
Nomination Committee:
Chairman Mikael Lilius, Kaj-Gustaf Bergh, Lars Josefsson, Matti Vuoria
Remuneration Committee:
Chairman Mikael Lilius, Paul Ehrnrooth, Matti Vuoria
RISKS AND BUSINESS UNCERTAINTIES
The overall risks from the financial crisis continue to decrease within Ship
Power. However, some risk of rescheduling and slippages in terms of delivery
times still remains. The impact of rising oil prices on the global economy and
trade poses a risk for the shipping sector.
In the Power Plants business, larger projects in certain regions may still be
facing timing issues. The turmoil in the Middle East and North Africa has
increased the risk of postponement of new power plant investments in the region.
The annual report for 2010 contains a thorough description of Wärtsilä's risks
and risk management.
MARKET OUTLOOK
In the marine market, the merchant segment is expected to be slow in 2011, as
the market is still suffering from overcapacity and sluggish earnings
development. The ordering activity for bulk carriers is expected to continue to
slow down. However, the outlook for certain sub-segments, like containers and
LNG carriers, is improving. The Offshore and Special vessel segments have
remained lively and this is expected to continue. There is rising interest and
activity in natural gas applications. Wärtsilä Ship Power reiterates its view of
continued price pressure within its markets, and its expectation of moderately
better order intake in 2011 compared to the previous year.
Recovery in the power generation market is expected to continue in 2011. The
growing emerging markets will continue to invest in new power generation
capacity, which will increase demand - especially in the flexible baseload
segment. The ramp down of older coal based generation will increase the demand
for gas based generation in the medium to long term. This is supported by the
production of shale gas in the US, and the expectation that natural gas prices
will remain competitive. Wärtsilä Power Plants estimates its order intake to
remain at a good level in 2011.
The Services market is expected to follow the global economy to growth this
year. The largest growth potential comes from Asia and the Americas. Power
Plants customers continue to have a stable demand for services and there are
good prospects for new contracts especially in Asia. In Europe, marine customers
are still focusing on cost savings while in Asia the markets are normalising.
The outlook is also good for the offshore services market. The competition for
services projects and maintenance work in the marine market will remain tight.
However, Wärtsilä Services is well positioned thanks to its diversified customer
base and broad geographical presence, as well as the wide range of services
offered. We expect a sustainable recovery in the marine service market in 2011.
WÄRTSILÄ'S PROSPECTS FOR 2011 REITERATED
Wärtsilä expects its net sales for 2011 to grow by 3-5% and operational
profitability (EBIT% before nonrecurring items) to be around 11%.
WÄRTSILÄ INTERIM REPORT JANUARY - MARCH 2011
This interim financial report is prepared in accordance with IAS 34 (Interim
Financial Reporting) using the same accounting policies and methods of
computation as in the annual financial statements for 2010. All figures in the
accounts have been rounded and consequently the sum of individual figures can
deviate from the presented sum figure.
Use of estimates
The preparation of the financial statements in accordance with IFRS requires
management to make estimates and assumptions that affect the valuation of the
reported assets and liabilities and other information, such as contingent
liabilities and the recognition of income and expenses in the income statement.
Although the estimates are based on the management's best knowledge of current
events and actions, actual results may differ from the estimates.
IFRS amendments
Of the amended International Financial Reporting Standards (IFRS) and
interpretations mandatory as of 1 January 2011 the following are applicable on
the Group reporting:
* Amendment to IAS 32 Financial instruments: Presentation - Classification of
Rights Issues
* Revised IAS 24 Related Party Disclosures
The adaption of the revised standards and interpretations does not have any
material effect on the interim report.
This interim report is unaudited. All share related financial ratios and their
comparison figures have been calculated based on the new amount of shares.
CONDENSED INCOME STATEMENT
MEUR 1-3/2011 1-3/2010 2010
-------------------------------------------------------------------------------
Net sales 1 083 922 4 553
Other operating income 10 7 52
Expenses -956 -851 -4 082
Depreciation, amortisation and impairment -29 -30 -116
Share of result of associates and joint ventures 3 2 5
Operating result 111 49 412
Financial income and expenses -4 -13
Net income from financial assets available for sale 149
Profit before taxes 107 49 548
Income taxes -31 -14 -151
-------------------------------------------------------------------------------
Profit for the financial period 76 35 397
-------------------------------------------------------------------------------
Attributable to:
Owners of the parent 74 32 389
Non-controlling interests 2 2 11
-------------------------------------------------------------------------------
Total 76 35 397
-------------------------------------------------------------------------------
Earnings per share attributable to equity holders of the parent company:
-------------------------------------------------------------------------------
Earnings per share, EUR (basic and diluted) 0,38 0,16 1,96
-------------------------------------------------------------------------------
STATEMENT OF COMPREHENSIVE INCOME
Profit for the financial period 76 35 397
Other comprehensive income after tax:
Exchange differences on translating foreign operations -9 13 17
Financial assets available for sale
fair valuation 6 10 30
transferred to statement of income -110
Cash flow hedges 4 -9 -9
Share of other comprehensive income of associates and joint ventures 1
-------------------------------------------------------------------------------
Other comprehensive income 1 13 -71
-------------------------------------------------------------------------------
Total comprehensive income for the period 77 48 326
-------------------------------------------------------------------------------
Total comprehensive income attributable to:
Owners of the parent 77 45 313
Non-controlling interests 1 3 13
-------------------------------------------------------------------------------
77 48 326
CONDENSED STATEMENT OF FINANCIAL POSITION
MEUR 31 Mar. 2011 31 Mar. 2010 31 Dec. 2010
--------------------------------------------------------------------------------
Non-current assets
Intangible assets 771 782 780
Property, plant and equipment 440 456 466
Investments in associates and joint
ventures 70 61 65
Financial assets available for sale 26 166 18
Deferred tax receivables 118 97 122
Other receivables 32 30 32
--------------------------------------------------------------------------------
1 458 1 593 1 483
Current assets
Inventories 1 239 1 633 1 244
Other receivables 1 218 1 169 1 192
Cash and cash equivalents 619 252 776
--------------------------------------------------------------------------------
3 075 3 054 3 213
--------------------------------------------------------------------------------
Total assets 4 533 4 647 4 696
--------------------------------------------------------------------------------
Equity
Share capital 336 336 336
Other equity 1 107 1 033 1 302
--------------------------------------------------------------------------------
Total equity attributable to equity
holders of the parent 1 443 1 369 1 638
Non-controlling interests 24 19 26
--------------------------------------------------------------------------------
Total equity 1 467 1 388 1 664
Non-current liabilities
Interest-bearing debt 553 611 572
Deferred tax liabilities 66 95 70
Other liabilities 180 192 189
--------------------------------------------------------------------------------
799 898 831
Current liabilities
Interest-bearing debt 65 71 56
Other liabilities 2 201 2 290 2 145
--------------------------------------------------------------------------------
2 266 2 361 2 201
Total liabilities 3 066 3 259 3 032
--------------------------------------------------------------------------------
Total equity and liabilities 4 533 4 647 4 696
--------------------------------------------------------------------------------
CONDENSED CASH FLOW STATEMENT
MEUR 1-3/2011 1-3/2010 2010
--------------------------------------------------------------------------------
Cash flow from operating activities:
Profit for the financial period 76 35 397
Depreciation, amortisation and impairment 29 30 116
Financial income and expenses 4 13
Selling profit and loss of fixed assets and other changes -1 3 -147
Share of result of associates and joint ventures -3 -2 -5
Income taxes 31 14 151
Changes in working capital 30 166 370
--------------------------------------------------------------------------------
Cash flow from operating activities before financial
items and taxes 166 246 896
Financial items and paid taxes -34 -65 -233
--------------------------------------------------------------------------------
Cash flow from operating activities 133 181 663
--------------------------------------------------------------------------------
Cash flow from investing activities:
Investments in shares and acquisitions -5 -1 -6
Net investments in property, plant and equipment and
intangible assets -14 -13 -83
Proceeds from sale of financial assets available for sale 2 173
Cash flow from other investing activities 1 4 -5
--------------------------------------------------------------------------------
Cash flow from investing activities -16 -11 79
--------------------------------------------------------------------------------
Cash flow from financing activities:
Proceeds from non-current borrowings 25 37
Repayments and other changes in non-current loans 2 -12 -76
Changes in current loans and other changes 2 -9 -2
Dividends paid -274 -173 -175
--------------------------------------------------------------------------------
Cash flow from financing activities -270 -168 -216
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Change in cash and cash equivalents, increase (+) /
decrease (-) -153 2 525
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Cash and cash equivalents at beginning of period 776 244 244
Exchange rate changes -5 6 7
Cash and cash equivalents at end of period 619 252 776
--------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF
CHANGES IN EQUITY
Total equity attributable to equity holders of
MEUR the parent Non-
controlling Total
interests equity
-------------------------------------------------------------------------------- Fair
Share value
Share issue Translation and other Retained
capital premium differences reserves earnings
--------------------------------------------------------------------------------
Equity on 1
January 2011 336 61 8 12 1 221 26 1 664
Dividends -271 -2 -273
Total
comprehensive
income for the
period -7 10 74 1 77
--------------------------------------------------------------------------------
Equity on 31
Mar. 2011 336 61 0 22 1 023 24 1 467
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Equity on 1
January 2010 336 61 -6 99 1 006 16 1 512
Dividends -173 -173
Total
comprehensive
income for the
period 12 1 33 3 48
--------------------------------------------------------------------------------
Equity on 31
Mar. 2010 336 61 6 100 866 19 1 388
--------------------------------------------------------------------------------
GEOGRAPHICAL AREAS Europe Asia Americas Other Total
MEUR
---------------------------------------------------
Net sales 1-3/2011 385 369 226 102 1 083
Net sales 1-3/2010 279 342 199 101 922
---------------------------------------------------
INTANGIBLE ASSETS AND PROPERTY, PLANT & EQUIPMENT
MEUR 1-3/2011 1-3/2010 2010
----------------------------------------------------------------------------
Intangible assets
Book value at 1 January 780 779 779
Changes in exchange rates -5 10 20
Additions 7 5 17
Amortisation and impairment -11 -11 -42
Disposals and intra-balance sheet transfer 6
----------------------------------------------------------------------------
Book value at end of period 771 782 780
----------------------------------------------------------------------------
Property, plant and equipment
Book value at 1 January 466 457 457
Changes in exchange rates -6 7 14
Additions 8 10 75
Depreciation and impairment -18 -18 -73
Disposals and intra-balance sheet transfer -8 -1 -6
----------------------------------------------------------------------------
Book value at end of period 440 456 466
----------------------------------------------------------------------------
GROSS CAPITAL EXPENDITURE
MEUR 1-3/2011 1-3/2010 2010
----------------------------------------------------------------------------
Investments in securities and acquisitions 5 1 6
Intangible assets and property, plant and equipment 14 14 92
----------------------------------------------------------------------------
Total 19 15 98
----------------------------------------------------------------------------
INTEREST-BEARING LOAN CAPITAL
MEUR 1-3/2011 1-3/2010 2010
----------------------------------------------------------------------------
Non-current liabilities 553 611 572
Current liabilities 65 71 56
Loan receivables -17 -20 -17
Cash and cash equivalents -619 -252 -776
----------------------------------------------------------------------------
Net -17 410 -165
----------------------------------------------------------------------------
FINANCIAL RATIOS 1-3/2011 1-3/2010 2010
----------------------------------------------------------------------------
Earnings per share, EUR (basic and diluted) 0,38 0,16 1,96
Equity per share, EUR 7,32 6,94 7,59
Solvency ratio, % 37,5 36,4 40,8
Gearing 0,00 0,31 -0,09
----------------------------------------------------------------------------
PERSONNEL
1-3/2011 1-3/2010 2010
----------------------------------------------------------------------------
On average 17 544 18 481 18 000
At end of period 17 526 18 410 17 528
----------------------------------------------------------------------------
CONTINGENT LIABILITIES
MEUR 1-3/2011 1-3/2010 2010
----------------------------------------------------------------------------
Mortgages 57 56 59
Chattel mortgages 17 12 18
----------------------------------------------------------------------------
Total 74 68 77
----------------------------------------------------------------------------
Guarantees and contingent liabilities
on behalf of Group companies 601 723 623
on behalf of associated companies 9 8 9
Nominal amount of rents according
to leasing contracts 70 81 74
----------------------------------------------------------------------------
Total 679 812 706
----------------------------------------------------------------------------
NOMINAL VALUES OF DERIVATIVE INSTRUMENTS
MEUR Total amount of which closed
--------------------------------------------------------------------------------
Interest rate swaps 20
Foreign exchange forward contracts 1 007 135
Currency options, purchased 12
Currency options, written
--------------------------------------------------------------------------------
CONDENSED STATEMENT OF INCOME, QUARTERLY
MEUR 1-3/2011 10-12/2010 7-9/2010 4-6/2010 1-3/2010
--------------------------------------------------------------------------------
Net sales 1 083 1 462 1 039 1 131 922
Other operating income 10 21 13 11 7
Expenses -956 -1 313 -910 -1 007 -851
Depreciation, amortisation
and impairment -29 -29 -29 -28 -30
Share of result of
associates and joint
ventures 3 2 2 2
Operating result 111 143 114 105 49
Financial income and
expenses -4 -10 -6 4
Net income from financial assets
available for sale 117 32
Profit before taxes 107 251 140 109 49
Income taxes -31 -71 -35 -31 -14
--------------------------------------------------------------------------------
Profit for the financial
period 76 179 104 79 35
--------------------------------------------------------------------------------
Attributable to:
Owners of the parent 74 176 101 76 32
Non-controlling interests 2 4 3 3 2
--------------------------------------------------------------------------------
Total 76 179 104 79 35
--------------------------------------------------------------------------------
Earnings per share attributable to equity holders of
the parent company:
--------------------------------------------------------------------------------
Earnings per share, EUR 0,38 0,89 0,51 0,39 0,16
--------------------------------------------------------------------------------
CALCULATION OF FINANCIAL RATIOS
Earnings per share (EPS)
Profit for the period attributable to equity holders of the parent
company
------------------------------------------------------------------------
Adjusted number of shares over the period
Equity per share
Equity attributable to equity holders of the parent company
-------------------------------------------------------------------------
Adjusted number of shares at the end of the period
Solvency ratio
Equity
-------------------------------------------------------------------------x 100
Total equity and liabilities - advances received
Gearing
Interest-bearing liabilities - cash and cash equivalents
-------------------------------------------------------------------------
Equity
19 April 2011
Wärtsilä Corporation
Board of Directors
[HUG#1507975]
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