Wärtsilä - Financial Statement Release

WÄRTSILÄ'S FINANCIAL STATEMENTS BULLETIN JANUARY-DECEMBER 2013

Wärtsilä Corporation FINANCIAL STATEMENTS BULLETIN 29 January 2014 at 8.30 local
time

RESILIENT PROFITABILITY AND STRONG CASH FLOW IN CHALLENGING MARKETS

This release is a summary of Wärtsilä's financial statements bulletin 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/q4/ and on the company website at
www.wartsila.com.

FOURTH QUARTER HIGHLIGHTS
- Order intake remained stable at EUR 1,351 million (1,357)
- Net sales decreased 8% to EUR 1,411 million (1,533)
- Book-to-bill 0.96 (0.89)
- Operating result before non-recurring items EUR 201 million, or 14.2% of net
sales (EUR 188 million or 12.3%)
- EBITA EUR 208 million, or 14.8% of net sales (EUR 198 million or 12.9%)
- Earnings per share EUR 0.74 (0.62)
- Cash flow from operating activities EUR 317 million (187)

HIGHLIGHTS OF THE REVIEW PERIOD JANUARY-DECEMBER 2013
- Order intake decreased 1% to EUR 4,872 million (4,940)
- Net sales decreased 1% to EUR 4,654 million (4,725)
- Book-to-bill 1.05 (1.05)
- Order book at the end of the period decreased 1% to EUR 4,426 million (4,492)
- Operating result before non-recurring items EUR 520 million, or 11.2% of net
sales (EUR 517 million or 10.9%)
- EBITA EUR 552 million, or 11.9% of net sales (EUR 552 million or 11.7%)
- Earnings per share EUR 1.98 (1.72)
- Cash flow from operating activities EUR 578 million (153)
- Dividend proposal 1.05 euro per share

EVENTS AFTER THE REPORTING PERIOD
- A Group-wide efficiency programme was announced on 29 January 2014

BJÖRN ROSENGREN, PRESIDENT AND CEO"Wärtsilä's performance in 2013 was impacted by the continued uncertainty in the
global economy. Due to unfavorable exchange rates and some delayed deliveries,
the net sales development was slightly weaker than expected. However,
profitability remained resilient despite the lower level of sales. Supported by
a strong fourth quarter and a focus on cost control, our full year operational
profitability reached 11.2%. Cash flow from operating activities developed well,
increasing to EUR 578 million during the year. There was significant improvement
in the marine markets during 2013, and ordering was active in all major vessel
segments. In the power plant markets delays in customer decision-making
continued. This impacted our Group order intake levels, which decreased by 1%
compared to the previous year. The service markets remained stable. Long-term
agreements continue to be a strategic focus area for the Services business, and
I am pleased that several such contracts were signed during the year.

Our market outlook for 2014 remains cautious, although a slight improvement may
be seen in certain areas. Based on our current order book and project pipeline
we expect some growth in net sales during 2014 and profitability to remain at a
similar level to that of 2013."

WÄRTSILÄ'S PROSPECTS FOR 2014
Wärtsilä expects its net sales for 2014 to grow by 0-10% and its operational
profitability (EBIT% before non-recurring items) to be around 11%.

KEY FIGURES
                                Restated(3)                  Restated(3)


 MEUR                10-12/2013  10-12/2012 Change 1-12/2013   1-12/2012 Change
-------------------------------------------------------------------------------
 Order intake             1 351       1 357     0%     4 872       4 940    -1%

 Order book at the
 end of the period                                     4 426       4 492    -1%

 Net sales                1 411       1 533    -8%     4 654       4 725    -1%

 Operating result
 (EBITA)(1)                 208         198     5%       552         552     0%

 % of net sales            14.8        12.9             11.9        11.7

 Operating result
 (EBIT)(2)                  201         188     7%       520         517     1%

 % of net sales            14.2        12.3             11.2        10.9

 Profit before taxes        181         162              507         453

 Earnings/share, EUR       0.74        0.62             1.98        1.72

 Cash flow from
 operating
 activities                 317         187              578         153

 Net interest-
 bearing debt at the
 end of the period                                       276         567

 Gross capital
 expenditure                                             134         513

 Gearing                                                0.15        0.32
-------------------------------------------------------------------------------




(1) EBITA is shown excluding non-recurring items of EUR 20 million (34) and
intangible asset amortisation related to acquisitions of
EUR 32 million (35) during the review period January-December 2013. During the
fourth quarter, non-recurring items amounted to
EUR 9 million (17) and intangible asset amortisation related to acquisitions to
EUR 8 million (10).
(2) EBIT is shown excluding non-recurring items.
(3) Figures have been restated due to changes in pension accounting (IAS 19
Employee benefits).

EVENTS AFTER THE REPORTING PERIOD
On 29 January 2014, Wärtsilä announced plans to realign its organisation to
secure future profitability and competitiveness. The Group-wide efficiency
programme is expected to lead to a reduction of approximately 1,000 employees
globally, of which about 200 are planned to be in Finland. The reductions will
impact all businesses and support functions. With these actions Wärtsilä seeks
annual savings of EUR 60 million. The effect of these savings is expected to
materialise fully by the end of 2014. The non-recurring costs related to the
restructuring measures will be EUR 50 million. Of these costs EUR 11 million was
recognised in 2013, as certain measures were initiated at the end of the year.

MARKET OUTLOOK
Power generation markets closely follow global macro-economic development.
Uncertainty in the macro economy, combined with slow global growth projections,
has impacted the power generation markets, leading to two consecutive years of
decline. Based on the forecasted GDP growth in 2014, the overall market for
liquid and gas fuelled power generation is expected to improve slightly.
Ordering activity remains focused on 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.

The main drivers supporting activity in the shipping and offshore sectors are in
place. World seaborne trade and the world economy are showing signs of
improvement, which benefits the merchant shipping market. Furthermore, the
current oil price level supports activity in the offshore industry, including
operations in harsh and deep water areas. The importance of fuel efficiency and
the regulatory environment are clearly visible, and the interest in gas as a
fuel is increasing. Overall contracting is expected to remain at improved
levels, keeping in mind the prevailing overcapacity and the market's limited
capacity to absorb new tonnage. Due to the relatively high level of contracting
in the traditional merchant segment during 2013, a small downturn in merchant
ordering activity may be seen in 2014.

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 offshore and gas fuelled vessels remains positive.
Demand for services in the power plant segment continues to be good. From a
regional perspective, the outlook for the Middle East and Asia is slightly more
positive, supported by interest in power plant related services. The outlook is
also good in the Americas and Africa.


BOARD OF DIRECTORS' DIVIDEND PROPOSAL
The Board of Directors proposes that a dividend of 1.05 euro per share be paid
for the financial year 2013. The parent company's distributable funds total
1,027,025,847.20 euro, which includes 174,475,007.05 euro in net profit for the
year. There are 197,241,130 shares with dividend rights. The dividend will be
paid to shareholders who are registered in the list of shareholders maintained
by Euroclear Finland Ltd on the record date, which is 11 March 2014. The
dividend payment date proposed by the Board is 18 March 2014. The Annual Report
2013, including the financial review and the review by the Board of Directors,
will be available on the company website www.wartsila.com and at
www.wartsilareports.com during week 7.

ANALYST AND PRESS CONFERENCE
An analyst and press conference will be held on Wednesday 29 January 2014, 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=737975&s=1&k=D0FA95720AA644A113B4C768899
22FA2.
To participate in the teleconference please register at the following address;
http://emea.directeventreg.com/registration/31486139. You will receive dial-in
details by e-mail once you have registered. If problems occur, please press *0
for operator assistance. Please and 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 10 709 5599
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 maximizes the environmental and economic performance of the
vessels and power plants of its customers. In 2013, Wärtsilä's net sales
totalled EUR 4.7 billion with approximately 18,700 employees. The company has
operations in more than 200 locations in nearly 70 countries around the world.
Wärtsilä is listed on the NASDAQ OMX Helsinki, Finland.
www.wartsila.com


[HUG#1757682]

Attachments:

Financial Statements Bulletin 2013.pdf