Finland: Wartsila’s Order Intake Rises

Wärtsilä, a Finland-based company that manufactures and services power sources and other equipment in the marine and energy markets today, issued financial results for the first quarter 2012.

Highlights for the period January-March 2012

• Order intake increased 13% to EUR 1,109 million (979)
•  Book-to-bill 1.10 (0.90)
•  At the end of the period the order book totalled EUR 4,409 million (3,669), +20%
•  Net sales decreased 7% to EUR 1,005 million (1,083)
•  Operating result EUR 102 million, or 10.1% of net sales (EUR 113 million and 10.4%)
•  Earnings per share 0.33 euro (0.38)
•  Cash flow from operating activities EUR 28 million (133)
•  The acquisition of Hamworthy became effective on 31 January 2012

Björn Rosengren, President and CEO commented:

“The year has started rather well with order intake increasing by 13%. Our profitability was 10.1% and we are well on track to reach our targets for this year. Our net sales development was in line with our overall expectation of rather low Power Plants and Ship Power deliveries during the first quarter. Services’ net sales grew by 12% with the increase coming from both parts and field services.  

The offshore market was active, and we received a repeat order from Harvey Gulf International to supply integrated solutions for two gas fuelled offshore support vessels that will operate in the Gulf of Mexico.

He also commented on Wärtsilä’s recent acquisition of Hamworthy, a global provider of specialist equipment and services to the marine, oil & gas and industrial sectors.

Integration of the recently acquired company Hamworthy is proceeding according to plan and the company is performing better than expected. Our target is to double Hamworthy’s net sales within the next five years.”

As for the outlook Wärtsilä believes that the offshore segment continues to present good future contracting opportunities, especially for drilling ships and support vessels. The interest for gas fuelled vessels has increased also in segments that have not previously been powered by gas. The environmental agenda is also expected to remain a central issue, thus driving interest in solutions for environmental compliance.

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Offshore Energy Today Staff, April 20, 2012