Wartsila: Good Growth in Order Intake (Finland)

Wärtsilä Corporation today announced third quarter 2011 results.

THIRD QUARTER HIGHLIGHTS

– Order intake increased by 11% to EUR 1,118 million (1,004)
– Order intake in joint venture companies grew significantly, EUR 182 million (68)
– Net sales decreased 18% to EUR 851 million (1,039)
– Operating result EUR 94 million, or 11.0% of net sales (EUR 117 million and 11.2%)
– Earnings per share amounted to EUR 0.28 (0.41)
– Book-to-bill increased to 1.31 (0.97)
– Wärtsilä acquired Cedervall, a manufacturer of shaft seal and bearing systems for the marine industry

HIGHLIGHTS OF THE REVIEW PERIOD JANUARY-SEPTEMBER 2011

– Order intake increased by 9% to EUR 3,267 million (3,002)
– Order intake in joint venture companies grew significantly, EUR 216 million (73)
– Net sales decreased to EUR 2,970 million (3,091), -4%
– Operating result EUR 324 million (328), 10.9% of net sales (10.6)
– At the end of the period the order book totalled EUR 4,042 million (4,243), -5%
– Earnings per share amounted to EUR 1.05 (1.18)
– Cash flow from operating activities EUR 303 million (491)

The operating result and earnings per share are shown excluding nonrecurring items. Wärtsilä recognised EUR 6 million of nonrecurring items related to restructuring measures during the third quarter and EUR 17 million  of nonrecurring items during the review period January-September 2011.

BJÖRN ROSENGREN, PRESIDENT AND CEO:

“This is my first time presenting Wärtsilä’s result and I am pleased as it was strong in many ways. Wärtsilä’s resilience in terms of solid profitability and increasing order intake in all three businesses gives us good possibilities for the future. In addition to the active Offshore segment, order intake grew significantly in our Korean joint venture, which focuses on dual-fuel engines for LNG carriers. This emphasises our strong position in the gas engine markets. Power Plants received some landmark orders, in addition to good ordering activity globally. Mining sector customers, utilities and Independent Power Producers actively placed orders. The third quarter developed as expected in terms of net sales, which was on a lower level compared to the previous year. This development was mainly related to the timing of deliveries. While certain marine service markets are suffering from uncertainties in the global economy, the power plant service market is more stable. In the slightly longer term, we see good prospects arising for environmental services. Despite the increased uncertainties in the global economy during this quarter, our prospects for net sales and profitability for the year 2011 remain the same.”

WÄRTSILÄ’S PROSPECTS FOR 2011 REITERATED

Wärtsilä expects its net sales for 2011 to decline by 0-5% compared to last year and operational profitability (EBIT% before nonrecurring items) to be around 11%.

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Source: Wärtsilä, October 19, 2011