Wartsila Order Intake Down 14 Pct, Finland
Wärtsilä Corporation of Finland said its order intake decreased 14% to EUR 1,097 million in the third quarter of 2013.
Third quarter highlights:
- Net sales increased 11% to EUR 1,209 million (1,087)
- Book-to-bill 0.91 (1.17)
- Operating result before non-recurring items EUR 138 million, or 11.4% of net sales (EUR 113 million or 10.4%)
- EBITA EUR 146 million, or 12.1% of net sales (EUR 122 million or 11.2%)
- Earnings per share EUR 0.48 (0.38)
- Cash flow from operating activities EUR 139 million (121)
Highlights of the review period January – September 2013
- Order intake decreased 2% to EUR 3,520 million (3,583)
- Net sales increased 2% to EUR 3,243 million (3,191)
- Book-to-bill 1.09 (1.12)
- Operating result before non-recurring items EUR 319 million, or 9.8% of net sales (EUR 328 million or 10.3%)
- EBITA EUR 343 million, or 10.6% of net sales (EUR 354 million or 11.1%)
- Earnings per share EUR 1.24 (1.09)
- Cash flow from operating activities EUR 261 million (-34)
- Order book at the end of the period decreased by 3% to EUR 4,568 million (4,724)
Björn Rosengren, President and CEO: “Our operations developed in line with our expectations during the third quarter. Net sales grew by 11% to EUR 1,209 million and profitability was 11.4%. With better visibility on net sales development, we specify our sales growth guidance to 0-5%, while our profitability estimate remains unchanged at around 11%.
“Uncertainties in the global economy and fluctuations in emerging market currencies have caused power plant customers to delay decision-making, which has impacted our overall order intake development. In the marine markets, we see good activity across all the main vessel segments. The focus on fuel efficiency and competitive newbuilding prices are supporting investments in the merchant segment, while offshore markets remain active. Services net sales development was steady, which reflects the overall stability of the service market. Wärtsilä signed several long-term service agreements during the quarter, and we see further opportunities in this area.”
Wärtsilä prospects for 2013 Revised
Wärtsilä specifies its net sales prospects for 2013. Based on the current order book, net sales for 2013 is expected to grow by 0-5%. Previously, Wärtsilä estimated that its net sales would grow by 0-10%. Wärtsilä reiterates its expectations that operational profitability (EBIT% before non-recurring items) will be around 11%.
LNG World News Staff, October 24, 2013; Image: Wärtsilä