Wärtsilä - Interim report (Q1 and Q3)

WÄRTSILÄ INTERIM REPORT JANUARY-MARCH 2017

Wärtsilä Corporation INTERIM REPORT 26 April 2017 at 8.30 a.m. local time

WÄRTSILÄ INTERIM REPORT JANUARY-MARCH 2017

POSITIVE DEVELOPMENT IN ORDER INTAKE

This release is a summary of Wärtsilä's Interim Report January-March 2017. The
complete report is attached to this release as a pdf-file. It is also available
at http://www.wartsilareports.com/en-US/2017/q1/frontpage/ and on the company
website at www.wartsila.com.

HIGHLIGHTS OF THE REVIEW PERIOD JANUARY-MARCH 2017
- Order intake increased 11% to EUR 1,413 million (1,271)
- Net sales increased 4% to EUR 1,007 million (967)
- Book-to-bill 1.40 (1.31)
- Comparable operating result increased to EUR 86 million (84), which represents
8.5% of net sales (8.7)
- Earnings per share declined to 0.28 euro (0.30)
- Cash flow from operating activities increased to EUR 2 million (-13)
- Order book at the end of the period was stable at EUR 5,096 million (5,103)

WÄRTSILÄ'S PROSPECTS FOR 2017
The overall demand for Wärtsilä's services and solutions in 2017 is expected to
be relatively unchanged from the previous year. Demand by business area is
anticipated to be as follows:

  * Solid in Services with growth opportunities in selected regions and
    segments.
  * Good in Energy Solutions (previously solid), thanks to increasing
    electricity demand in the emerging markets and the global shift towards
    renewable energy sources, which will support the need for distributed,
    flexible, gas-fired power generation.
  * Soft in Marine Solutions. Although the outlook for the cruise and ferry
    segment is positive, the merchant, gas carrier, and offshore segments
    continue to suffer from overcapacity, slow trade growth, and the financial
    constraints of customers.

Wärtsilä's current order book for 2017 deliveries is EUR 2,744 million (2,681),
which mainly comprises Marine Solutions' and Energy Solutions' deliveries.
Wärtsilä will continue to focus on improving efficiency, which is expected to
partially offset lower volumes in the marine markets. The pricing environment in
Energy Solutions' markets has stabilised, but the order book is still impacted
by the competitive pressure seen in previous years. The good performance in
Services is expected to continue.

JAAKKO ESKOLA, PRESIDENT AND CEO
"Wärtsilä's order intake development was clearly the highlight of the first
quarter. Services' order intake was boosted by growing interest in long-term
service agreements, while customers in the energy markets continued to invest in
new power generation, both in the emerging markets and industrialised countries.
Orders received in the Marine Solutions business were also at a reasonable
level, thanks to continued activity in the cruise and FSRU markets. Although
vessel contracting has remained low, signs of improving sentiment indicate a
gradual recovery in demand towards the latter part of the year.

The higher level of power plant deliveries supported both net sales development
and our underlying performance in the first quarter. Looking ahead, we expect
service activity to improve thanks to customers' maintenance schedules and the
increased demand for long-term agreements in both of our end markets. This,
together with the stabilised pricing environment in Energy Solutions, provides a
good basis for the second half of 2017."

KEY FIGURES
 MEUR                            1-3/2017 1-3/2016 Change                  2016
-------------------------------------------------------------------------------
 Order intake                       1 413    1 271    11%                 4 927

 Order book at the end of the
 period                             5 096    5 103     0%                 4 696

 Net sales                          1 007      967     4%                 4 801

 Operating result(1)                   80       83    -4%                   532

 % of net sales                       7.9      8.6                         11.1

 Comparable operating result           86       84     2%                   583

 % of net sales                       8.5      8.7                         12.1

 Comparable adjusted EBITA             94       93     1%                   618

 % of net sales                       9.4      9.6                         12.9

 Profit before taxes                   74       80                          479

 Earnings/share, EUR                 0.28     0.30                         1.79

 Cash flow from operating
 activities                             2      -13                          613

 Net interest-bearing debt at
 the end of the period                260      639                          150

 Gross capital expenditure              9       11                          146

 Gearing                             0.13     0.32                         0.07
-------------------------------------------------------------------------------
 (1)Items affecting comparability in the first quarter of 2017 included costs
 related to restructuring programmes of EUR 6 million (1).

ANALYST AND PRESS CONFERENCE
An analyst and press conference will be held today, Wednesday 26 April 2017, 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 at the following address:
http://wcc.webeventservices.com/r.htm?e=1400874&s=1&k=8313E441822FC1CF85A246AAF2
D74652. To participate in the teleconference please register at the following
address: http://emea.directeventreg.com/registration/2005373. 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 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 & Media Relations
Tel: +358 10 709 5637
natalia.valtasaari@wartsila.com

For press information, please contact:
Atte Palomäki
Group Vice President, Communications & Branding
Tel: +358 10 709 5599
atte.palomaki@wartsila.com

Wärtsilä in brief
Wärtsilä is a global leader in advanced technologies and complete lifecycle
solutions for the marine and energy markets. By emphasising sustainable
innovation and total efficiency, Wärtsilä maximises the environmental and
economic performance of the vessels and power plants of its customers. In 2016,
Wärtsilä's net sales totalled EUR 4.8 billion with approximately 18,000
employees. The company has operations in over 200 locations in more than 70
countries around the world. Wärtsilä is listed on Nasdaq Helsinki.
www.wartsila.com


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Attachments:

Interim Report Q1 2017.pdf