Wärtsilä - Interim report (Q1 and Q3)

WÄRTSILÄ INTERIM REPORT JANUARY-JUNE 2013

Wärtsilä Corporation INTERIM REPORT 18 July 2013 at 8.30 a.m. local time

STABLE DEVELOPMENT IN THE FIRST HALF OF 2013

SECOND QUARTER HIGHLIGHTS
· Order intake decreased 11% to EUR 1,071 million (1,198)
· Net sales increased 5% to EUR 1,152 million (1,099)
· Book-to-bill 0.93 (1.09)
· Operating result EUR 111 million, or 9.6% of net sales (EUR 113 million or
10.3%)
· EBITA EUR 119 million, or 10.3% of net sales (EUR 123 million or 11.2%)
· Earnings per share EUR 0.39 (0.38)
· Cash flow from operating activities EUR 38 million (-183)

HIGHLIGHTS OF THE REVIEW PERIOD JANUARY-JUNE 2013
· Order intake increased 5% to EUR 2,424 million (2,308)
· Net sales decreased 3% to EUR 2,034 million (2,104)
· Book-to-bill 1.19 (1.10)
· Operating result EUR 181 million, or 8.9% of net sales (EUR 215 million or
10.2%)
· EBITA EUR 198 million, or 9.7% of net sales (EUR 232 million or 11.0%)
· Earnings per share EUR 0.76 (0.72)
· Cash flow from operating activities EUR 122 million (-154)
· Order book at the end of the period increased by 5% to EUR 4,763 million
(4,515)

BJÖRN ROSENGREN, PRESIDENT AND CEO"The second quarter development was reasonable considering the current economic
situation, with net sales increasing by 5% and profitability at 9.6%. We
continue to work towards reaching this year's growth and profitability targets.
Marine markets are showing some signs of improvement, with the offshore and
specialised vessel segments continuing to be active. Furthermore, competitive
new building prices and the increased fuel efficiency of modern vessels are
attracting investments in the merchant segment. Overall order intake levels were
lower than in the previous year, especially in Power Plants where we are
experiencing delays in customer decision-making. We have seen some recovery in
the service markets, which was reflected in the Services' net sales increase of
4%. Supported by our solid order book and the stable Services business, our
prospects for 2013 remain unchanged."

KEY FIGURES
                             Restated                 Restated        Restated
  MEUR              4-6/2013 4-6/2012 Change 1-6/2013 1-6/2012 Change     2012
 -----------------------------------------------------------------------------
  Order intake         1 071    1 198   -11%    2 424    2 308     5%    4 940

  Order book at the
  end of the period                             4 763    4 515     5%    4 492

  Net sales            1 152    1 099     5%    2 034    2 104    -3%    4 725

  Operating result
  (EBITA)(1)             119      123    -3%      198      232   -15%      552

  % of net sales        10.3     11.2             9.7     11.0            11.7

  Operating result
  (EBIT)(2)              111      113    -2%      181      215   -16%      517

  % of net sales         9.6     10.3             8.9     10.2            10.9

  Profit before
  taxes                  104       98             200      192             453

  Earnings/share,
  EUR                   0.39     0.38            0.76     0.72            1.72

  Cash flow from
  operating
  activities              38     -183             122     -154             153

  Net interest-
  bearing debt at
  the end of the
  period                                          658      790             567

  Gross capital
  expenditure                                      49      433             513

  Gearing                                        0.40     0.50            0.32
 -----------------------------------------------------------------------------

1 EBITA is shown excluding non-recurring items of EUR 2 million (13) and
intangible asset amortisation related to acquisitions of EUR 16 million (17)
during the review period January-June 2013. During the second quarter, non-
recurring items amounted to EUR 1 million (6) and intangible asset amortisation
related to acquisitions to EUR 8 million (10).
2 EBIT is shown excluding non-recurring items.


MARKET OUTLOOK
The general macroeconomic uncertainty and the slow global growth projections are
expected to continue to impact the global power generation markets. It is
expected that the overall market for natural gas and liquid fuel based power
generation in 2013 will be similar to that of 2012. In 2013, ordering activity
is expected to remain 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 is cautious,
although market conditions are expected to be better than in 2012. Despite the
continued activity in orders, financing and overcapacity related issues are
still visible in the traditional merchant markets. The orders placed in these
markets focus more on fuel-efficient design and technology. Current emission
regulations create interesting opportunities in environmental solutions. The
contracting mix is expected to be largely in line with that seen in 2012,
favouring contracting in offshore and specialised vessel segments. The outlook
for gas demand remains healthy and the attractiveness of LNG as a fuel is
supported by its low carbon intensity, global trade, and pricing.

The overall service market outlook remains stable. A continued increase in the
medium-speed engine and propulsion installed base helps to balance the market
environment in regions such as Europe, where the market is expected to remain
challenging - especially on the marine side. The outlook for offshore services
remains positive. Interesting opportunities can be seen in long term service
agreements for gas powered vessels. Demand for services in the power segment
continues to be good. The outlook for the Middle East and Asia remains slightly
more positive, supported by interest in power plant related service projects.
The outlook is also good in the Americas, where there is a mix of marine and
power plant customers.

WÄRTSILÄ'S PROSPECTS FOR 2013 UNCHANGED
Wärtsilä expects its net sales for 2013 to grow by 0-10% and its operational
profitability (EBIT% before non-recurring items) to be around 11%.

DISCLOSURE PROCEDURE
Wärtsilä Corporation follows the disclosure procedure enabled by Standard 5.2b
published by the Finnish Financial Supervision Authority. This stock exchange
release is a summary of Wärtsilä Corporation's Interim Report January-June
2013. The complete report is attached to this release in pdf format. The report
is also available in Wärtsilä's web-based report system at
http://www.wartsilareports.com/en-US/2013/q2/frontpage/ and on the company
website at www.wartsila.com/investors.

ANALYST AND PRESS CONFERENCE AT 10.00 A.M. LOCAL TIME
An analyst and press conference will be held on Thursday 18 July 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=649254&s=1&k=DA7FA5C9BC5F4667E8FCA75D382
75A35.

To participate in the teleconference please register at the following address:
http://emea.directeventreg.com/registration/12769515.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:

Raimo Lind
Executive Vice President & CFO
Tel: +358 10 709 5640
raimo.lind@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.


[HUG#1717287]

Attachments:

Interim report January-June 2013.pdf