Wärtsilä - Interim report (Q1 and Q3)

Wärtsilä Interim Report January-September 2012

Wärtsilä Corporation INTERIM REPORT 17 September 2012 at 8.30 a.m. local time

GROWTH IN ORDER INTAKE AND NET SALES DESPITE TOUGH MARKETS

THIRD QUARTER HIGHLIGHTS
- Prospects for 2012 improved
- Order intake increased 14% to EUR 1,275 million (1,118)
- Net sales increased 28% to EUR 1,087 million (851)
- Operating result (EBIT) EUR 113 million or 10.4% of net sales (EUR 94 million
or 11.0%)
- EBITA EUR 129 million or 11.9% of net sales (EUR 103 million or 12.1%)
- Earnings per share amounted to EUR 0.38 (0.26)
- Book-to-bill 1.17 (1.31)
- Cash flow from operating activities EUR 121 million (219)

HIGHLIGHTS OF THE REVIEW PERIOD JANUARY-SEPTEMBER 2012
- Order intake increased 10% to EUR 3,583 million (3,267)
- Net sales increased 7% to EUR 3,191 million (2,970)
- Operating result (EBIT) EUR 328 million or 10.3% of net sales (EUR 324 million
or 10.9%)
- EBITA EUR 354 million or 11.1% of net sales (EUR 336 million or 11.3%)
- At the end of the period the order book totalled EUR 4,724 million (4,042), an
increase of 17%
- Earnings per share amounted to 1.09 euro (0.99)
- Cash flow from operating activities EUR -34 million (303)

BJÖRN ROSENGREN, PRESIDENT AND CEO:"Despite the continuing uncertainty in the global economy and the tough market
conditions, both our order intake and net sales developed well. In the third
quarter they were up by 14% and 28% respectively. Ship Power's year-on-year
performance is strong, and has been supported by both an active offshore sector
and the Hamworthy acquisition. Among the highlights are a major engine and
propulsion equipment order for six Brazilian drillships from Jurong Shipyard Pte
Ltd, and three platform supply vessel related orders from Statoil, as well as
the first four ballast water management system orders. Wärtsilä again received a
record power plant order, this time for an approximately 600 MW power plant to
be constructed in Jordan. It will be the world's largest tri-fuel power plant. I
am also happy to note that the growth trend for Services continues, regardless
of the difficult market environment that many of our marine service customers
are experiencing.

We believe that net sales will grow this year by around 10-15%, which is more
than originally estimated. Our profitability now stands at 10.3% and we believe
it will improve in the fourth quarter. As a result, we expect profitability for
the full year to be 10.5-11%."


 MEUR                   7-9/2012 7-9/2011 Change 1-9/2012 1-9/2011 Change  2011
-------------------------------------------------------------------------------
 Order intake              1 275    1 118    14%    3 583    3 267    10% 4 516

 Order book at the end
 of the period                                      4 724    4 042    17% 4 007

 Net sales                 1 087      851    28%    3 191    2 970     7% 4 209

 Operating result
 (EBITA)(1)                  129      103    25%      354      336     5%   485

 % of net sales            11.9%    12.1%           11.1%    11.3%        11.5%

 Operating result
 (EBIT)(2)                   113       94    21%      328      324     1%   469

 % of net sales            10.4%    11.0%           10.3%    10.9%        11.1%

 Profit before taxes          99       83             291      298          429

 Earnings/share, EUR        0.38     0.26            1.09     0.99         1.44

 Cash flow from
 operating activities        121      219             -34      303          232

 Net interest-bearing
 debt

 at the end of the
 period                                               698      -57           58

 Gross capital
 expenditure                                          530      140          187

 Gearing                                             0.41    -0.03         0.04
-------------------------------------------------------------------------------
(1 )EBITA is shown excluding non-recurring items of EUR 16 million (17) and
intangible asset amortisation related to acquisitions of EUR 26 million (12)
during the review period January-September 2012. During the third quarter, non-
recurring items amounted to EUR 3 million (6) and intangible asset amortisation
related to acquisitions to EUR 16 million (9).
(2 )EBIT is shown excluding non-recurring items.

MARKET OUTLOOK
The power generation market is expected to remain active during the remainder of
2012. Ordering activity continues to be 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. Despite the
continuing interest for new power generation investments, the macro economic
uncertainty may delay investment decisions.

Robust contracting activity, in line with the activity levels seen during 2011
and so far in 2012, is expected for the offshore, gas carrier, and other
specialised vessel markets. The outlook for overall vessel contracting activity
during 2012 is slightly negative, with full year contracting expected to be less
than during 2011. The decrease is largely driven by the low contracting levels
in the traditional merchant segments. Interesting opportunities are being seen
in the following areas: efficiency improvement, gas as a fuel, and environmental
solutions. These are now central issues in many newbuilding discussions and are
expected to grow in importance going forward.

The outlook for the overall service market is stable despite the continued
uncertainty in the global economy.The outlook for service activities in the
merchant segment remains challenging, while the outlook for offshore remains
promising. Activity in the other marine markets is expected to be stable. Market
conditions for power plants related services are expected to remain on a good
level.

WÄRTSILÄ'S PROSPECTS FOR 2012 REVISED
Wärtsilä expects its net sales for 2012 to grow by 10-15% (previously 5-10%) and
its operational profitability (EBIT% before non-recurring items) to be 10.5-11%
(previously 10-11%).

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-September
2012. The complete report is attached to this release in pdf format and is also
available on Wärtsilä's website at www.wartsila.com/investors.

ANALYST AND PRESS CONFERENCE
An analyst and press conference will be held on, Wednesday 17 October 2012, 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://storm.zoomvisionmamato.com/player/wartsila/objects/gftabmj8/.

To participate in the teleconference please register at the following address:
http://www.yourconferencecentre.com/r.aspx?p=1&a=DKXaEsCAWnEelu.
You will receive dial-in details by e-mail once you have registered. If you want
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: Q3 Results 2012. 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 2011, Wärtsilä's net sales
totalled EUR 4.2 billion with approximately 18,000 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#1649790]

Attachments:

Interim Report January-September 2012.pdf