WÄRTSILÄ INTERIM REPORT JANUARY-SEPTEMBER 2015
(Thomson Reuters ONE) -
Wärtsilä Corporation INTERIM REPORT 22 October 2015 at 8.30 a.m. local time
NET SALES AND PROFITABILITY DEVELOPING ACCORDING TO PLAN
This release is a summary of Wärtsilä's Interim Report January-September 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/q3/frontpage/ and on the
company website at www.wartsila.com.
THIRD QUARTER HIGHLIGHTS
- Order intake decreased 17% to EUR 1,086 million (1,309)
- Net sales increased 9% to EUR 1,222 million (1,117)
- Book-to-bill 0.89 (1.17)
- EBITA EUR 170 million, or 13.9% of net sales (EUR 149 million or 13.3%)
- Operating result before non-recurring items EUR 160 million, or 13.1% of net
sales (EUR 142 million or 12.7%)
- Earnings per share 0.49 euro (0.43)
- Cash flow from operating activities EUR -5 million (68)
- Mr Jaakko Eskola appointed President and CEO of Wärtsilä Corporation as of 1
November 2015
HIGHLIGHTS OF THE REVIEW PERIOD JANUARY-SEPTEMBER 2015
- Order intake was stable at EUR 3,529 million (3,562)
- Net sales increased 6% to EUR 3,439 million (3,230)
- Book-to-bill 1.03 (1.10)
- EBITA EUR 420 million, or 12.2% of net sales (EUR 392 million or 12.1%)
- Operating result before non-recurring items EUR 397 million, or 11.5% of net
sales (EUR 373 million or 11.5%)
- Earnings per share 1.46 euro (1.16)
- Cash flow from operating activities EUR 78 million (240)
- Order book at the end of the period increased 9% to EUR 5,112 million (4,674)
WÄRTSILÄ'S PROSPECTS FOR 2015 UNCHANGED
Wärtsilä expects its net sales for 2015 to grow by 5-10% and its operational
profitability (EBIT% before non-recurring items) to be 12.0-12.5%. This guidance
includes the impact of the L-3 Marine Systems International (MSI) acquisition.
MSI is expected to contribute approximately EUR 250 million to net sales and EUR
9 million to the operating result during 2015. Excluding purchase price
allocation amortisation, MSI's operating result is estimated to reach EUR 16
million.
BJÖRN ROSENGREN, PRESIDENT AND CEO
"Net sales increased by 9% to EUR 1,222 million in the third quarter, supported
by growth in aftermarket activities and by the contribution from L-3 Marine
Systems International. Good development within Services contributed to
profitability, which reached 13.1%. We are well on track to reach our guidance
for sales and profitability development this year.
Competition in the power generation markets is increasing, and the current
macroeconomic uncertainty continues to cause delays in customer decision-making.
Nevertheless, the project pipeline is solid and we continue to see opportunities
for improved activity in the upcoming quarter. The Marine Solutions markets
remain challenging. Low vessel contracting volumes, together with weak sentiment
in the offshore segment, is impacting our order intake. I am pleased to note
that our Services business is compensating well for the lower demand in our
equipment markets. Improved maintenance demand from marine customers and
stability within power plant service indicates a positive outlook for the rest
of this year.
Wärtsilä's mission is to shape the marine and energy markets with advanced
technologies while focusing on lifecycle performance - our ambition level is
high. We are well positioned to benefit from the ongoing fundamental changes in
our end markets, and from the increasing demand for higher efficiency with fewer
emissions. Furthermore, we have during the past few years initiated various
measures to develop the efficiency and flexibility of our own operations. I am
confident in Wärtsilä's long-term opportunities for growth and improved
profitability, and believe that Jaakko Eskola, with his strong and proven track
record, is well suited to lead the company towards continued success. I would
like to take this opportunity to thank our shareholders and the entire Wärtsilä
organisation for the inspiring past four years."
KEY FIGURES
MEUR 7-9/2015 7-9/2014 Change 1-9/2015 1-9/2014 Change 2014
-------------------------------------------------------------------------------
Order intake 1 086 1 309 -17% 3 529 3 562 -1% 5 084
Order book at the
end of the period 5 112 4 674 9% 4 530
Net sales 1 222 1 117 9% 3 439 3 230 6% 4 779
Operating result
(EBITA)(1) 170 149 14% 420 392 7% 594
% of net sales 13.9 13.3 12.2 12.1 12.4
Operating result
(EBIT)(2) 160 142 13% 397 373 7% 569
% of net sales 13.1 12.7 11.5 11.5 11.9
Profit before taxes 132 129 354 338 494
Earnings/share, EUR 0.49 0.43 1.46 1.16 1.76
Cash flow from
operating
activities -5 68 78 240 452
Net interest-
bearing debt at the
end of the period 513 277 94
Gross capital
expenditure 314 69 94
Gearing 0.26 0.14 0.05
-------------------------------------------------------------------------------
(1) EBITA is shown excluding non-recurring items related to restructuring
measures of EUR 11 million (17) and purchase price allocation amortisation of
EUR 23 million (19) during the review period January-September 2015. During
the third quarter, non-recurring items related to restructuring measures
amounted to EUR 11 million (1) and purchase price allocation amortisation to
EUR 9 million (6).
(2) EBIT is shown excluding non-recurring items.
MARKET OUTLOOK
The market for liquid and gas fuelled power generation is expected to remain
challenging as economic uncertainty continues. Despite the slower economic
growth in the emerging markets, growth in electricity demand will support power
plant investments. In the OECD countries, low economic growth continues to limit
demand for new power plants. Low gas prices are driving demand in the USA. The
megatrend towards distributed, flexible gas-fired power generation is gaining
further ground globally. The increasing deployment of intermittent renewable
power, such as wind and solar, will require flexible solutions to balance the
power systems. Electricity markets, all over the world, are being developed to
accommodate the necessary flexibility.
The overall outlook for the shipping and shipbuilding markets remains
challenging. Overcapacity continues to affect demand. Low oil prices are
impacting investments in offshore exploration and development, resulting in weak
contracting of offshore drilling units and support vessels. Gas carrier
contracting is expected to remain on a normalised level. The outlook for the
cruise segment remains positive thanks to an anticipated increase in Asian
passenger traffic, while the outlook for ferries is supported by signs of
economic recovery in the USA and Europe. The importance of fuel efficiency and
environmental regulations are clearly visible. The regulatory environment is
driving interest in gas as a marine fuel in the wider marine markets.
The overall service market outlook is positive with growth opportunities in
selected regions and segments. An increase in the installed base of medium-speed
engines and propulsion equipment is offsetting the slower service demand for
older installations and the uncertainty regarding short-term demand in the
merchant marine segment. The service demand for installations operating on oil
based fuels is expected to grow as low oil prices have had a favourable impact
on operating costs. Although the decline in oil prices has resulted in a
challenging outlook for offshore services in specific regions, the growth during
recent years in the offshore installed base partially compensates for a
potential decline in service volumes. The service outlook for gas fuelled
vessels remains favourable. Service demand 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 today, Thursday 22 October 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=1064308&s=1&k=3B398222C5AEF8CFB1BCE24CAB
280782. To participate in the teleconference please register at the following
address: http://emea.directeventreg.com/registration/56579541. 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 - September 2015:
http://hugin.info/131481/R/1960684/714813.pdf
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originality of the information contained therein.
Source: Wärtsilä Oyj Abp via GlobeNewswire
[HUG#1960684]
Unternehmensinformation / Kurzprofil:
Datum: 22.10.2015 - 07:31 Uhr
Sprache: Deutsch
News-ID 428659
Anzahl Zeichen: 12126
contact information:
Town:
Helsinki
Kategorie:
Business News
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