Finland: Wartsila Order Intake Up 14 Pct in Q3

Wärtsilä Corporation announced its interim report for the period from January to September 2012.

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 122 million or 11.2% of net sales (EUR 99 million or 11.6%)
• 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)

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%).

Björn Rosengren, president and CEO said: “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%.”

[mappress]

LNG World News Staff, October 17, 2012