Wärtsilä - Half Year financial report

Wärtsilä half year financial report January-June 2017

Wärtsilä Corporation Half year financial report 20 July 2017 at 8.30 a.m. local
time

WÄRTSILÄ HALF YEAR FINANCIAL REPORT JANUARY-JUNE 2017

GROWTH IN ORDERS AND NET SALES IN THE FIRST HALF OF 2017

This release is a summary of Wärtsilä's Half year financial report January-June
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/q2/frontpage/ and on the
company website at www.wartsila.com.

SECOND QUARTER HIGHLIGHTS
- Order intake increased 14% to EUR 1,363 million (1,194)
- Net sales increased 8% to EUR 1,292 million (1,196)
- Book-to-bill 1.05 (1.00)
- Comparable operating result increased to EUR 126 million (122), which
represents 9.7% of net sales (10.2)
- Earnings per share increased to 0.38 euro (0.19)
- Cash flow from operating activities decreased to EUR 2 million (202)

HIGHLIGHTS OF THE REVIEW PERIOD JANUARY-JUNE 2017
- Order intake increased 13% to EUR 2,776 million (2,465)
- Net sales increased 6% to EUR 2,299 million (2,163)
- Book-to-bill 1.21 (1.14)
- Comparable operating result increased to EUR 211 million (206), which
represents 9.2% of net sales (9.5)
- Earnings per share increased to 0.66 euro (0.49)
- Cash flow from operating activities decreased to EUR 3 million (189)
- Order book at the end of the period amounted to EUR 5,065 million (5,083)

WÄRTSILÄ'S PROSPECTS FOR 2017
Wärtsilä's overall development 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, 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.
  * Solid in Marine Solutions (raised from soft), thanks to a favourable vessel
    contracting mix. The general marine market environment remains challenging,
    as 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 2,087 million (2,061).
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
"The first half of 2017 was characterised by good development in net sales,
largely due to an increase in the number of power plant deliveries, as well as
by solid earnings. Order intake developed well in all business areas. The power
plant project pipeline has continued to materialise into orders at a healthy
pace, thanks to the growing interest in flexible, gas-fired technologies.
Furthermore, although the marine markets remain challenging, a favourable vessel
contracting mix supported the development of Marine Solutions' orders received,
particularly in the second quarter. Activity in the service markets was broadly
stable, with healthy demand for long-term agreements. I am pleased that our
customers continue to see the value of entering into service partnerships with
Wärtsilä, which provides a good basis for future development.

Wärtsilä's ambition is to become an agile technology company dedicated to
improving customers' operations by being a leader in smart marine and smart
energy ecosystems. The recent acquisitions of Eniram and Greensmith, as well as
our cleantech innovations, demonstrate our active role in enabling sustainable
societies and in helping customers to benefit from smart technologies. To
support the development of our digital services and products, we are launching
digital acceleration centres where promising ideas are developed and co-created
into service concepts and products together with customers and partners. I am
confident that the investments into our company-wide digital transformation will
drive new business opportunities, ultimately strengthening our competitive
positioning, and supporting our long-term target of profitable growth."

KEY FIGURES


 MEUR                4-6/2017 4-6/2016 Change 1-6/2017 1-6/2016 Change     2016
-------------------------------------------------------------------------------
 Order intake           1 363    1 194    14%    2 776    2 465    13%    4 927

 Order book at the
 end of the period                               5 065    5 083     0%    4 696

 Net sales              1 292    1 196     8%    2 299    2 163     6%    4 801

 Operating result(1)      117       96    22%      197      179    10%      532

 % of net sales           9.1      8.0             8.6      8.3            11.1

 Comparable                                                                 583
 operating result         126      122     3%      211      206     2%

 % of net sales           9.7     10.2             9.2      9.5            12.1

 Comparable adjusted                                                        618
 EBITA                    134      131     3%      228      224     2%

 % of net sales          10.4     10.9             9.9     10.3            12.9

 Profit before taxes      103       58    77%      177      138    28%      479

 Earnings/share, EUR     0.38     0.19            0.66     0.49            1.79

 Cash flow from
 operating
 activities                 2      202               3      189             613

 Net interest-
 bearing debt at the
 end of the period                                 299      517             150

 Gross capital
 expenditure                                        20       71             146

 Gearing                                          0.14     0.25            0.07
-------------------------------------------------------------------------------
 (1)Items affecting comparability in the second quarter of 2017 included costs
 related to restructuring programmes of EUR 8 million (26). During the review
 period January-June 2017 restructuring costs amounted to EUR 14 million (27).


ANALYST AND PRESS CONFERENCE
An analyst and press conference will be held today, Thursday 20 July 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=1455716&s=1&k=F4FCB18C6E814C9CFA8BA5FA2F
4B8FA6. To participate in the teleconference please register at the following
address: http://emea.directeventreg.com/registration/45544446. 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
Executive 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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Priedai:

Half year financial report 2017.pdf