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Wärtsilä's Interim Report January-September 2014

Hydrocarbon Engineering,

Q3 highlights

  • Order intake increased 21% to €1.309 million (1.086).
  • Net sales decreased 7% to €1.117 million (1.199).
  • Book-to-bill 1.17 (0.91).
  • Operating result before non-recurring items €142 million, or 12.7% of net sales (€148 million or 12.3%).
  • Earnings per share €0.43 (0.48).
  • Cash flow from operating activities €68 million (139).

Highlights of the review period January-September 2014 

  • Order intake increased 2% to €3.562 million (3.487).
  • Net sales increased 1% to €3.230 million (3.203).
  • Book-to-bill 1.10 (1.09).
  • Operating result before non-recurring items €373 million, or 11.5% of net sales (€346 million or 10.8%).
  • Earnings per share €1.16 (1.24).
  • Cash flow from operating activities €240 million (261).
  • Order book at the end of the period increased 5% to €4.674 million (4.455).

Wärtsilä's prospects for 2014 revisited 

Wärtsilä estimates its profitability for 2014 (EBIT% before non-recurring items) to be 11.5-12%. Previously profitability was expected to be around 11.5%. Wärtsilä reiterates its expectation that net sales will grow by around 5%.

Bjorn Rosengren, President and Chief Executive Officer

"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 programme, which resulted in savings of €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%."

Adapted from press release by Hannah Priestley-Eaton

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