Wärtsilä posts Interim Report for January-September 2014
Wärtsilä issued Interim Report for January-September 2014.
THIRD QUARTER HIGHLIGHTS
- Order intake increased 21% to EUR 1,309 million (1,086)
- Net sales decreased 7% to EUR 1,117 million (1,199)
- Book-to-bill 1.17 (0.91)
- Operating result before non-recurring items EUR 142 million, or 12.7% of net sales (EUR 148 million or 12.3%)
- Earnings per share EUR 0.43 (0.48)
- Cash flow from operating activities EUR 68 million (139)
HIGHLIGHTS OF THE REVIEW PERIOD JANUARY-SEPTEMBER 2014
- Order intake increased 2% to EUR 3,562 million (3,487)
- Net sales increased 1% to EUR 3,230 million (3,203)
- Book-to-bill 1.10 (1.09)
- Operating result before non-recurring items EUR 373 million, or 11.5% of net sales (EUR 346 million or 10.8%)
- Earnings per share EUR 1.16 (1.24)
- Cash flow from operating activities EUR 240 million (261)
- Order book at the end of the period increased 5% to EUR 4,674 million (4,455)
WÄRTSILÄ'S PROSPECTS FOR 2014 REVISED
Wärtsilä estimates its profitability for 2014 (EBIT% before non-recurring items) to be 11.5-12.0%. Previously profitability was expected to be around 11.5%. Wärtsilä reiterates its expectation that net sales will grow by around 5%.
BJÖRN ROSENGREN, PRESIDENT AND CEO
“The third quarter was characterised by the strong development in order intake. In the power generation markets customers are gradually beginning to commit to investments. The improved activity levels especially for smaller orders, combined with the 139 MW order we received from Mexico and the 112 MW order from North Dakota, resulted in a 47% increase in Power Plants’ order intake. In the marine markets the recent activity in LNG and LPG carriers has supported the ordering of gas handling systems. The 24% increase in Ship Power’s order intake was further enhanced by good activity in the cruise markets. I am confident that the positive trend in order development will continue during the upcoming quarter.
Third quarter net sales and profitability developed in line with our expectations. I am especially pleased that Services’ net sales grew by 9%, which shows that our focus on growth is paying off. Profitability reached 12.7% partly thanks to the ongoing efficiency program, which resulted in savings of EUR 10 million in the third quarter. Profitability has developed well thus far in 2014, reaching 11.5% for the period January-September, and consequently we raise our full year profitability guidance to 11.5-12.0%.”
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.