WÄRTSILÄ INTERIM REPORT JANUARY-SEPTEMBER 2016
(Thomson Reuters ONE) -
Wärtsilä Corporation INTERIM REPORT 25 October 2016 at 8.30 a.m. local time
WÄRTSILÄ INTERIM REPORT JANUARY-SEPTEMBER 2016
POSITIVE DEVELOPMENT IN ORDER INTAKE
This release is a summary of Wärtsilä's Interim Report January-September 2016.
The complete report is attached to this release as a pdf-file. It is also
available at http://www.wartsilareports.com/en-US/2016/q3/frontpage/ and on the
company website at www.wartsila.com.
THIRD QUARTER HIGHLIGHTS
- Order intake increased 5% to EUR 1,139 million (1,086)
- Net sales decreased 12% to EUR 1,079 million (1,222)
- Book-to-bill 1.06 (0.89)
- Comparable operating result EUR 123 million, or 11.4% of net sales (EUR 160
million or 13.1%)
- Earnings per share 0.43 euro (0.49)
- Cash flow from operating activities EUR 189 million (-5)
HIGHLIGHTS OF THE REVIEW PERIOD JANUARY-SEPTEMBER 2016
- Order intake increased 2% to EUR 3,604 million (3,529)
- Net sales decreased 6% to EUR 3,242 million (3,439)
- Book-to-bill 1.11 (1.03)
- Comparable operating result EUR 330 million, or 10.2% of net sales (EUR 397
million or 11.5%)
- Earnings per share 0.92 euro (1.46)
- Cash flow from operating activities EUR 378 million (78)
- Order book at the end of the period decreased 2% to EUR 5,024 million (5,112)
WÄRTSILÄ'S PROSPECTS FOR 2016
Wärtsilä revised its prospects on 12 October 2016. Wärtsilä now expects its net
sales to decline by around 5% and its profitability (comparable operating result
as a percent of net sales) to be around 12%. Previously Wärtsilä expected its
net sales to grow by 0-5% and its profitability to be 12.5-13.0%.
JAAKKO ESKOLA, PRESIDENT AND CEO
"The third quarter of 2016 developed largely in line with our expectations. As
anticipated, the concentration of deliveries towards the end of the year
resulted in lower sales, which burdened our operating result. We continue to
focus on increasing efficiency and flexibility within our organisation.
Although service activity has stabilised at a high level, we remain confident in
the positive long-term drivers. In the equipment markets, the demand for new
vessels was weak, reflecting the challenges related to overcapacity and low
earnings. Nevertheless, improved sentiment in the power generation markets has
contributed to the growth in overall order intake. I am pleased to note that a
solid project pipeline supports continued momentum in our Energy Solutions
business.
Despite the growth in order intake, lower than anticipated power plant
deliveries in the current year has caused us to adjust our guidance for 2016. We
now expect a small decline in sales, and estimate profitability to be around
12%."
KEY FIGURES
MEUR 7-9/2016 7-9/2015 Change 1-9/2016 1-9/2015 Change 2015
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Order intake 1 139 1 086 5% 3 604 3 529 2% 4 932
Order book at the
end of the period 5 024 5 112 -2% 4 882
Net sales 1 079 1 222 -12% 3 242 3 439 -6% 5 029
Operating result(1) 122 149 -18% 301 386 -22% 587
% of net sales 11.3 12.2 9.3 11.2 11.7
Comparable 123 160 -23% 330
operating result 397 -17% 612
% of net sales 11.4 13.1 10.2 11.5 12.2
Comparable adjusted 132 170 -22% 356
EBITA 420 -15% 643
% of net sales 12.3 13.9 11.0 12.2 12.8
Profit before taxes 115 132 -13% 253 354 -29% 553
Earnings/share, EUR 0.43 0.49 0.92 1.46 2.25
Cash flow from 189 -5
operating
activities 378 78 255
Net interest-
bearing debt at the
end of the period 384 513 372
Gross capital
expenditure 126 314 346
Gearing 0.18 0.26 0.17
-------------------------------------------------------------------------------
(1)Items affecting comparability included restructuring costs of EUR 2 million
(11) in the third quarter of 2016. During the review period January-September
2016 restructuring costs amounted to EUR 29 million (11), of which EUR 17
million were non-cash write-downs.
MARKET OUTLOOK
Despite slower economic growth in the emerging markets, growth in electricity
demand and the availability of international funding for infrastructure projects
will continue to support power plant investments. In the industrialised
countries, the slow economic growth continues to limit demand for new power
plants, except in North America where the market situation is more positive for
gas-fired power plants. The megatrend towards renewable energy sources is
evident, with investments expected to favour utility scale solar photovoltaic
installations. Furthermore, distributed, flexible, gas fired power generation
continues to gain ground globally. Electricity markets are being developed to
reward the necessary flexibility, thereby enabling new profitable investments.
Wärtsilä's systematic market development work in these markets will continue to
promote the benefits of Smart Power Generation.
The outlook for the shipping and shipbuilding markets remains challenging.
Overcapacity and weak earnings continue to limit the demand for new vessels in
the merchant segment, while low oil prices are impacting investments in offshore
exploration and development. In the gas carrier markets, the demand for both LNG
and LPG carriers remains under pressure due to the low oil and gas prices and
supply-demand imbalances. The outlook for the cruise and ferry segment remains
positive. Cruise vessel demand is supported by increasing passenger volumes,
particularly in Asia, while the contracting of ferries is supported by fleet
renewals in Europe, the potential implementation of new emission regulations,
and favourable newbuilding prices.
The service market outlook remains solid with growth opportunities in selected
regions and segments. An increase in the installed base of medium-speed engines
and propulsion equipment, as well as the shift to gas based technology, offsets
the slower service demand for older installations and the uncertainty regarding
short-term demand development in the merchant marine segment. In the offshore
segment, the growth in the installed base during recent years is expected to
partially compensate for the challenging outlook in certain regions. 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 interest in long-term service agreements.
ANALYST AND PRESS CONFERENCE
An analyst and press conference will be held today 25 October 2016, 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=1278954&s=1&k=6DAAD0150CB60B0FBAD47F8A5
8FD8D46. To participate in the teleconference please register at the following
address: http://emea.directeventreg.com/registration/89931295. 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 & Media Relations
Tel: +358 10 709 5637
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 advanced technologies and complete lifecycle
solutions for the marine and energy markets. By emphasising sustainable
innovation and total efficiency, Wärtsilä maximises the environmental and
economic performance of the vessels and power plants of its customers.
In 2015, Wärtsilä's net sales totalled EUR 5 billion with approximately 18,800
employees. The company has operations in over 200 locations in more than 70
countries around the world. Wärtsilä is listed on Nasdaq Helsinki.
www.wartsila.com
Interim report Q3 2016:
http://hugin.info/131481/R/2051077/767352.pdf
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Wärtsilä Oyj Abp via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 25.10.2016 - 07:30 Uhr
Sprache: Deutsch
News-ID 502467
Anzahl Zeichen: 10565
contact information:
Town:
Helsinki
Kategorie:
Business News
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