WÄRTSILÄ INTERIM REPORT JANUARY-MARCH 2015
(Thomson Reuters ONE) -
Wärtsilä Corporation INTERIM REPORT 23 April 2015 at 8.30 a.m. local time
WÄRTSILÄ INTERIM REPORT JANUARY-MARCH 2015
SERVICES AND POWER PLANTS' ORDERING ACTIVITY COMPENSATES FOR WEAKER MARINE
MARKETS
This release is a summary of Wärtsilä's Interim Report January-March 2015. The
complete report is attached to this release as a pdf-file. It is also available
at http://www.wartsilareports.com/en-US/2015/q1/frontpage/ and on the company
website at www.wartsila.com.
HIGHLIGHTS OF THE REVIEW PERIOD JANUARY-MARCH 2015
- Order intake increased 15% to EUR 1,285 million (1,115)
- Net sales decreased 1% to EUR 988 million (997)
- Book-to-bill 1.30 (1.12)
- Operating result before non-recurring items EUR 100 million, or 10.1% of net
sales (EUR 98 million or 9.8%)
- Earnings per share 0.43 euro (0.31)
- Cash flow from operating activities EUR 37 million (111)
- Order book at the end of the period increased 12% to EUR 4,931 million (4,384)
WÄRTSILÄ'S PROSPECTS FOR 2015 UNCHANGED
Wärtsilä expects its net sales for 2015 to grow by 0-10% and its operational
profitability (EBIT% before non-recurring items) to be between 12.0-12.5%. The
guidance excludes the impact of the L-3 Marine Systems International
acquisition.
BJÖRN ROSENGREN, PRESIDENT AND CEO
"As anticipated, the year 2015 started with a slow marine market. Low oil prices
are causing a wait and see attitude among offshore customers that, combined with
subdued vessel contracting, resulted in fewer orders being received within the
Ship Power business. In the Power Plants business, market sentiment is
improving. Economic growth in the emerging markets and electricity consumption
growth in the USA supported power plant investments, and our quotation activity
indicates a continued good level of underlying customer demand.
Services' development was clearly the highlight of the first quarter. The
increased maintenance activity seen towards the end of last year continued into
the first quarter, boosting both order intake and sales. Services' sales grew by
11%, which compensated for the lower delivery volumes in the Ship Power and
Power Plants businesses. Consequently, Group sales reached a similar level to
that of the corresponding period last year and profitability improved somewhat
to 10.1%. We remain committed to our guidance for 2015, and continue to see some
opportunities for sales growth and improved profitability despite the prevailing
market uncertainties."
KEY FIGURES
MEUR 1-3/2015 1-3/2014 Change 2014
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Order intake 1 285 1 115 15% 5 084
Order book at the end of the
period 4 931 4 384 12% 4 530
Net sales 988 997 -1% 4 779
Operating result (EBIT)(1) 100 98 2% 569
% of net sales 10.1 9.8 11.9
Profit before taxes 82 89 494
Earnings/share, EUR 0.43 0.31 1.76
Cash flow from operating
activities 37 111 452
Net interest-bearing debt at
the end of the period 251 390 94
Gross capital expenditure 18 19 94
Gearing 0.14 0.22 0.05
-------------------------------------------------------------------------------
(1) EBIT is shown excluding non-recurring items. Wärtsilä recognised non-
recurring items amounting to EUR 47 million during 2014, of which EUR 6
million was recognised in the first quarter.
MARKET OUTLOOK
Based on the market situation during 2014 and the GDP forecasts for 2015, the
market for liquid and gas fuelled power generation is expected to remain
challenging. However, the trend towards distributed, flexible gas-fired power
generation is continuing. The increasing deployment of intermittent renewable
power, such as wind and solar, in many parts of the world will require flexible
solutions to balance fluctuations in the grid. In OECD countries, slow economic
growth continues to limit demand for new power plants. At the same time,
customers are awaiting new electricity market rules which is creating pent up
demand. Furthermore, the shift towards CO2-neutral generation and the
consequential ramp down of older, largely coal-based generation will favour
flexible, efficient power solutions. In the developing world, GDP growth remains
supportive of investments in power generation capacity.
The outlook for the shipping and shipbuilding market environment remains
cautious due to weaker market conditions in the dry bulk and offshore segments.
Low oil prices continue to impact investments in exploration and development,
limiting demand for offshore drilling and support vessels. Overcapacity
continues to affect demand for conventional merchant vessels. However, increased
scrapping together with a more balanced fleet growth support a gradual recovery
in the freight market. The decline in oil prices presents opportunities in the
markets for crude oil tankers and containerships, as lower bunkering costs are
expected to have a positive impact on operating expenses for ship owners. The
sentiment in the gas carrier market remains healthy; activity is however
expected to revert to normal levels after strong ordering volumes in 2014. The
outlook for cruise and ferry is positive and is backed by new entrants to the
market, fleet renewals and increased passenger traffic from Asia. The importance
of fuel efficiency and environmental regulations is clearly visible, driving
interest in environmental solutions and gas as a marine fuel for the broader
marine markets.
The overall service market outlook is cautiously positive with growth
opportunities in selected regions and segments. An increase in the installed
base of medium-speed engines and propulsion equipment offsets the slower service
demand for older installations and uncertainty regarding short-term demand
development in the merchant marine segment. The service demand for installations
operating on oil based fuels is expected to grow as recent oil price
developments have had a favourable impact on operating costs. Although the
decline in oil prices has resulted in a cautious outlook for offshore service,
the recent years' growth in the offshore installed base partially compensates
for a potential decline in service volumes. The service outlook for gas fuelled
vessels remains favourable. Demand for services in the power plant segment
continues to be good with an especially positive outlook in the Middle East and
Africa. Customers in both the marine and power plant markets continue to show
healthy interest in long-term service agreements.
ANALYST AND PRESS CONFERENCE AT 10.00 A.M. LOCAL TIME
An analyst and press conference will be held on Thursday 23 April 2015 at 10.00
a.m. Finnish time (8.00 a.m. UK time), at the Wärtsilä headquarters in Helsinki,
Finland. The combined web- and teleconference will be held in English and can be
viewed at the following address:
http://wcc.webeventservices.com/r.htm?e=979349&s=1&k=3CF4BE09F0CDFF5C1F14B8693BD
E3594. To participate in the teleconference please register at the following
address: http://emea.directeventreg.com/registration/20405211 . You will receive
dial-in details by e-mail once you have registered. If problems occur, please
press *0 for operator assistance. Please use *6 to mute your phone during the
teleconference and the same code to unmute.
An on-demand version of the webcast will be available on the company website
later the same day.
For further information, please contact:
Marco Wirén
Executive Vice President & CFO
Tel: +358 10 709 5640
marco.wiren(at)wartsila.com
Natalia Valtasaari
Director, Investor Relations
Tel: +358 40 187 7809
natalia.valtasaari(at)wartsila.com
For press information, please contact:
Atte Palomäki
Executive Vice President, Communications & Branding
Tel: +358 10 709 5599
atte.palomaki(at)wartsila.com
Wärtsilä in brief
Wärtsilä is a global leader in complete lifecycle power solutions for the marine
and energy markets. By emphasising technological innovation and total
efficiency, Wärtsilä maximizes the environmental and economic performance of the
vessels and power plants of its customers. In 2014, Wärtsilä's net sales
totalled EUR 4.8 billion with approximately 17,700 employees. The company has
operations in more than 200 locations in nearly 70 countries around the world.
Wärtsilä is listed on the Nasdaq Helsinki. www.wartsila.com
Interim Report January - March 2015:
http://hugin.info/131481/R/1913797/683651.pdf
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Source: Wärtsilä Oyj Abp via GlobeNewswire
[HUG#1913797]
Unternehmensinformation / Kurzprofil:
Datum: 23.04.2015 - 07:31 Uhr
Sprache: Deutsch
News-ID 387940
Anzahl Zeichen: 10543
contact information:
Town:
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Kategorie:
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