WÿRTSILÿ CORPORATION INTERIM REPORT JANUARY-SEPTEMBER 2009
(Thomson Reuters ONE) - Wärtsilä Corporation INTERIM REPORT 22 October 2009 at 8.30 localtimeTHE CHALLENGING MARKET ENVIRONMENT CONTINUESTHIRD QUARTER HIGHLIGHTS- Net sales grew 2% to EUR 1,167 million (1,140)- Operating result grew to EUR 133 million (123), 11.4 % of net sales(10.8)- Earnings per share amounted to 0.87 euros (0.97)- Order intake fell 48% to EUR 725 million (1,382)- Cash flow from operating activities EUR 214 million (49)HIGHLIGHTS OF THE REVIEW PERIOD JANUARY-SEPTEMBER 2009- Net sales EUR 3,741 million (3,082), growth 21%- Operating result before nonrecurring restructuring items grew toEUR 419 million (328), 11.2% of net sales (10.6). Including therestructuring items, the operating result totalled EUR 413 million,11.0% of net sales.- Earnings per share amounted to 2.77 euros (2.42)- Cash flow from operating activities EUR 142 million (255)- Order intake EUR 2,468 million (4,750), a decrease of 48%- Order book total EUR 5,351 million (7,762), a decrease of 31%- Materialised order cancellations totalled EUR 279 millionOLE JOHANSSON, PRESIDENT AND CEO:"Wärtsilä's net sales were at a good level EUR 1,167 million andprofitability developed according to plan. Challenges in securingfinancing continued to impact the ordering activity in Power Plants.Looking ahead, the global need for flexible and environmentally soundpower generation and the quest for increased efficiency and betterenergy security will clearly work in Wärtsilä's favour. Servicescontinued its stable development, with the extensive installed baseof Wärtsilä equipment and increasing number of operations &management agreements creating a solid demand base. The marine marketcontinued to be challenging due to the large number of ships underconstruction, and Ship Power orders remained at a low level.Wärtsilä's activity in many segments of shipping is valuable as theweakness in some segments is likely to continue at least another twoyears. Once the broader recovery commences, the Asian shipbuildingmarket will emerge stronger than earlier. These shifts in the marketrequire structural re-evaluation. Wärtsilä is preparing to optimiseits production to meet the changing business environment."WÿRTSILÿ'S PROSPECTS FOR 2009 REITERATEDDespite the risk of cancellations and the nonrecurring restructuringitems booked in the second quarter, the order book for 2009 shouldsupport a 10-20 percent growth in net sales for 2009, which wouldmaintain the profitability at last year's good level.ANALYST AND PRESS CONFERENCEAn analyst and press conference will be held on Thursday 22 October2009, at 10.45 a.m. Finnish time (8.45 a.m. UK time), at the Wärtsiläheadquarters in Helsinki, Finland. The combined web- andteleconference will be held in English and can be viewed on theinternet at the following address:http://194.100.179.139:80/wip/directlink.do?newbrowser=1&pid=2917866To participate in the teleconference please call: +44 (0)20 7162 0077and enter the Conference ID: 847675. If you want to ask questionsduring the teleconference, press the number 1 on your phone toregister for a question and the # -key to withdraw a question. Theevent title for the call is: Result Q3 External. Please be ready tostate your details and the name of the conference to the operator. Ifproblems occur, please press the *-key followed by the 0-key. Wewould recommend that you would register to the conference in advanceat the following address:https://eventreg1.conferencing.com/webportal3/reg.html?Acc=085460&Conf=168815An on-demand version of the webcast will be available on the companywebsite later the same day.Wärtsilä in briefWärtsilä is a global leader in complete lifecycle power solutions forthe marine and energy markets. By emphasising technologicalinnovation and total efficiency, Wärtsilä maximises the environmentaland economic performance of the vessels and power plants of itscustomers. In 2008, Wärtsilä's net sales totalled EUR 4.6 billionwith 19,000 employees. The company has operations in 160 locations in70 countries around the world. Wärtsilä is listed on the NASDAQ OMXHelsinki, Finland.INTERIM REPORT JANUARY-SEPTEMBER 2009The figures in this interim report are unaudited.THIRD QUARTER 7-9/2009 IN BRIEFMEUR 7-9/2009 7-9/2008 ChangeOrder intake 725 1 382 -48%Net sales 1 167 1 140 2%Operating result 133 123 9%% of net sales 11.4% 10.8%Profit before taxes 125 127 -2%Earnings/share, EUR 0.87 0.97Cash flow from operating activities 214 49REVIEW PERIOD JANUARY-SEPTEMBER 2009 IN BRIEFMEUR 1-9/2009 1-9/2008 Change 2008Order intake 2 468 4 750 -48% 5 573Order book at the end of the period 5 351*) 7 762 -31% 6 883Net sales 3 741 3 082 21% 4 612Operating result (EBIT) beforenonrecurring restructuring items 419 328 28% 525% of net sales 11.2% 10.6% 11.4%Operating result 413% of net sales 11.0%Profit before taxes 388 333 16% 516Earnings/share, EUR 2.77 2.42 3.88Cash flow from operating activities 142 255 278Interest-bearing net debtat the end of the period 575 369 455Gross capital expenditure 98 272 366*) Cancellations amounting to EUR 279 million have been eliminatedform the order book during the review period January-September 2009.MARKET DEVELOPMENTSHIP POWERThe ship contracting is currently substantially below the high levelsof the past years. Despite the signs of recovery indicated by thefundamentals in the world economy, the shipping industry still facesproblems with over supply within the major vessel segments. Themarket activity seen during the recent months has mainly beenre-negotiations of existing orders.There have been postponements in the deliveries of existing vesselorders during the review period. The cancellation rate will probablynot reach the level estimated at the beginning of the year but themarket will still see considerable rescheduling of orders.Ship Power market sharesWärtsilä's market share in medium speed main engines decreased from40% at the end of the previous quarter to 31%. The company's marketshare in low speed main engines increased slightly to 13% (11). Inauxiliary engines the market shares dropped to 4% (6). Market shareshave become more sensitive to individual orders since the totalcontracting volume is low.POWER PLANTSDifficulties in arranging financing continued to impact the orderingactivity during the review period. The offering activity continued ata good level.Power Plants market sharesAccording to statistics compiled by the Diesel and Gas Turbinemagazine, the global market for oil and gas power plants inWärtsilä's power range declined to 11,570 MW (20,980) between June2008 and May 2009. The market for gas power plants, including bothreciprocating engines and gas turbines, declined to 7,090 MW(15,630), Wärtsilä's share of the market being 13% (8%). The marketfor heavy fuel oil plants decreased to 3,430 (4,050), Wärtsilä'sshare being 46% (49). In light fuel oil plants the market decreasedto 1.050 MW (1,300) and Wärtsilä's market share was 3% (20). ForWärtsilä the relevant markets for light fuel power plants are theliquid bio-fuels where hardly any plants were ordered.SERVICESIn the marine industry, the imbalance between vessel capacity andvessel demand prevailed and continued impacting the marine services.During the review period slow development was seen in Asia wherecapacity adaption through the lay-up of vessels continued. In thepower plant services sector several projects are under development inthe fields of environmental upgrades and fuel conversions.Wärtsilä's installed engine base in the Ship Power and Power Plantmarkets totals over 160,000 MW and consists of thousands ofinstallations distributed throughout the world. Both end marketsconsist of several customer segments for Services, and Wärtsilä'sportfolio is the broadest in the market. These factors limit theimpacts of fluctuations in any individual market or customer segment.ORDER INTAKEThe Group order intake for the third quarter totalled EUR 725 million(1,382), a decrease of 48%.The order intake for Ship Power totalled EUR 68 million (450), 85%below the corresponding period last year. During the quarter WärtsiläShip Power booked orders in the Merchant and the Offshore segments,49% and 3% of the total order intake respectively. Navy ordersrepresented 7% whereas Cruise&Ferry was 18%, Special vessels 17% andShip design 6%. The third quarter order intake remained at the samelevel as in the second quarter of 2009 (EUR 67 million in the secondquarter of 2009). For the review period January-September 2009 ShipPower's order intake was EUR 262 million (1,674), a decrease of 84%from the corresponding period last year.In the Power Plants business the continuing challenges in financingfor large projects resulted in lower than expected order intake forthe third quarter 2009. The order intake totalled EUR 170 million(498), 66 % lower than the corresponding period last year. The orderintake was 34% lower than in the previous quarter. Small and mediumsize projects for the industrial power generation segment were themajor contributors to the third quarter order intake. Orders werereceived in among other Papua New Guinea, Turkey, Italy andGreenland. For the review period January-September 2009 Power Plants'order intake totalled EUR 748 million (1,620), a 54% decreasecompared to corresponding period last year.Order intake for the Services business totalled EUR 483 million (434)in the third quarter, a growth of 11% compared to the correspondingperiod 2008. Compared to the second quarter, order intake grew by 5%(EUR 458 million in the second quarter of 2009). Wärtsilä signed O&Mcontracts for three power plants in Brazil, as well as two inPakistan. Services' order intake for the review periodJanuary-September totalled EUR 1,448 million (1,448).For the review period January-September 2009 Wärtsilä's total orderintake amounted to EUR 2,468 million (4,750), which represents areduction of 48% compared to the corresponding period 2008.ORDER BOOKAt the end of the review period Wärtsilä's total order book stood atEUR 5,351 million (7,762), a decrease of 31%.The Ship Power order book stood at EUR 3,230 million (5,010), -36%.During the review period January-September 2009, cancellations of EUR279 million materialised and were deducted from the order book. Thecancellations were mainly within the Merchant and Offshore segments.Wärtsilä sees a cancellation risk of approximately EUR 650 million(EUR 800 million at the end of the previous quarter).At the end of the review period the Power Plants order book amountedto EUR 1,549 million (2,243), which is 31% lower than at the samedate last year.The Services order book totalled EUR 571 million (505) at the end ofthe review period, an increase of 13%.Third quarter order intake by businessMEUR 7-9/2009 7-9/2008 ChangeShip Power 68 450 -85%Power Plants 170 498 -66%Services 483 434 11%Order intake, total 725 1 382 -48%Order intake Power PlantsMW 7-9/2009 7-9/2008 ChangeOil 109 680 -84%Gas 174 157 11%Renewable fuels 35 35 0%Order intake for the review period bybusinessMEUR 1-9/2009 1-9/2008 Change 1-12/2008Ship Power 262 1 674 -84% 1 826Power Plants 748 1 620 -54% 1 883Services 1 448 1 448 0% 1 858Order intake, total 2 468 4 750 -48% 5 573Order intake Power PlantsMW 1-9/2009 1-9/2008 Change 1-12/2008Oil 879 1 739 -49% 2 029Gas 468 1 033 -55% 1 240Renewable fuels 35 80 -56% 80Order book by businessMEUR 30 Sept. 2009 30 Sept. 2008 Change 2008Ship Power 3 230* 5 010 -36% 4 486Power Plants 1 549 2 243 -31% 1 949Services 571 505 13% 445Order book, total 5 351 7 762 -31% 6 883*) Cancellations amounting to EUR 279 million have been eliminatedform the order book during the review period January-September 2009.NET SALESDuring the third quarter, Wärtsilä's net sales increased by 2% to EUR1,167 million (1,140) compared to the corresponding period last year.Net sales for Ship Power totalled EUR 378 million (344), a growth of10%. Power Plants' net sales for the third quarter totalled 360million (349), +3%. The third quarter net sales for Services amountedto EUR 424 million (452), -6%.Wärtsilä's net sales for January-September 2009 grew by 21% andtotalled EUR 3,741 million (3,082). Ship Power's net sales grew 29%to EUR 1,230 million (952). Net Sales for Power Plants totalled EUR1,169 million (797), a growth of 47%. Net sales from the Servicesbusiness remained stable and on a good level amounting to EUR 1,326million (1,335). Net sales were evenly distributed between thebusinesses during the review period January-September 2009. ShipPower accounted for 33%, Power Plants for 31% and Services for 35% ofthe total net sales.Third quarter net sales by businessMEUR 7-9/2009 7-9/2008 ChangeShip Power 378 344 10%Power Plants 360 349 3%Services 424 452 -6%Net sales, total 1 167 1 140 2%Net sales for the review period by businessMEUR 1-9/2009 1-9/2008 Change 2008Ship Power 1 230 952 29% 1 531Power Plants 1 169 797 47% 1 261Services 1 326 1 335 -1% 1 830Net sales, total 3 741 3 082 21% 4 612FINANCIAL RESULTSThe third quarter operating result was EUR 133 million (123), 11.4%of net sales (10.8). For the review period January-September 2009,the operating result before nonrecurring expenses rose to EUR 419million (328), 11.2% of net sales (10.6). Wärtsilä recognised EUR 6million of nonrecurring expenses related to the adjustment measurestaken within the Ship Power business in the second quarter.Financial items amounted to EUR -25 million (5). Net interesttotalled EUR -14 million (-10). Dividends received totalled EUR 5million (6). Profit before taxes amounted to EUR 388 million (333).Taxes in the reporting period amounted to EUR 111 million (91).Earnings per share were EUR 2.77 (2.42).BALANCE SHEET, FINANCING AND CASH FLOWWärtsilä's third quarter cash flow from operating activities totalledEUR 214 million (49). For January-September 2009 the cash flow fromoperating activities was EUR 142 million (255). Net working capitaldecreased by EUR 80 million during the third quarter, the main reasonbeing the favourable development of receivables. Advances receiveddecreased by EUR 104 million during the quarter. Net working capitalat the end of the period totalled EUR 511 million (102). Advancesreceived at the end of the period totalled EUR 1,039 million (1,375).Net working capital has been exceptionally low in 2007 and 2008 dueto the high amount of advances received. Liquid reserves at the endof the period amounted to EUR 262 million (158).Net interest-bearing loan capital totalled EUR 575 million (369).Wärtsilä had interest bearing loans totalling EUR 852 million (539)at the end of September 2009. The existing funding programmes includelong term loans EUR 622 million, Committed Revolving CreditFacilities totalling EUR 530 million and Finnish Commercial Paperprogrammes totalling EUR 700 million. At the end of the periodnon-utilised committed credit facilities totalled EUR 530 million. Inaddition Wärtsilä has agreed on a EUR 30 million long-term loan thatwill be disbursed in November 2009. The total amount of short-termdebt maturing within the next 12 months is EUR 230 million.The solvency ratio was 35.4% (34.7) and gearing was 0.43 (0.34).HOLDINGSWärtsilä owns 7,270,350 B shares in Assa Abloy, or 2.0% of the total.This holding has been booked in the balance sheet at its market valueat the end of the reporting period, EUR 81 million.CAPITAL EXPENDITUREGross capital expenditure in the review period totalled EUR 98million (272), which comprised EUR 15 million (162) in acquisitionsand investments in securities, and EUR 82 million (110) in productionand information technology investments. Depreciation for the reviewperiod amounted to EUR 91 million (68).Capital expenditure for 2009 will be brought down from the previouslyindicated level of EUR 180 million excluding acquisitions toapproximately EUR 160 million including acquisitions (EUR 366 millionin 2008).STRATEGIC ACQUISITIONS, JOINT VENTURES AND EXPANSION OF THE NETWORKWärtsilä continued pursuing its strategy of expanding its networkwith new service facilities in amongst others Ukraine, Cameroon,Hungary, Chile and Dubai. The facilities provide a good base forfuture service growth and expanding the network will remain one ofWärtsilä's strategic focus areas also in the future.In May, Wärtsilä acquired 60% of the shares of Wärtsilä Navim Dieselof Italy, thus increasing its ownership of the company to 100%.Wärtsilä Navim Diesel, which specialises in marine sales and service,has a strong market position, particularly in the Cruise & Ferrysegment. The transaction resulted in EUR 8 million of new goodwill.MANUFACTURINGThe Ship Power market has substantially weakened since the economiccrisis began and the market shift to Asia continues stronger thanever. As a consequence, Wärtsilä is in the process of analysing itsmanufacturing footprint. Various alternatives are being evaluated foradjusting to these changes in the market. The analysis will compriseall manufacturing units with the major focus being on capacityadjustments in Europe. The impact on different units will bespecified during the fourth quarter of 2009 and the first quarter of2010. Wärtsilä has manufacturing units in Finland, Italy, theNetherlands, Norway, Spain, the United Kingdom, China, India, Japanand Korea.RESEARCH & DEVELOPMENTAfter performing successfully in a series of tests, the Wärtsiläsulphur oxides (SOx) scrubber has been granted the Sulphur EmissionControl Area (SECA) Compliance Certificate by the classificationsocieties Det Norske Veritas and Germanischer Lloyd.PERSONNELIn May, Wärtsilä Ship Power announced that it had initiated theformal process to reduce 400-450 jobs. The negotiations wereinitiated to adjust to the substantially weakened global marinemarket situation. The annual savings from these measures will beapproximately EUR 30 million. The effect of the savings will start tomaterialise gradually from the second half of 2009, and will takefull effect by the end of 2010. In the second quarter Wärtsilärecognised EUR 6 million of nonrecurring expenses in its operatingresult related to the adjustment measures taken in the Ship Powerbusiness. Altogether, Wärtsilä Ship Power employs sales, projectmanagement, engineering services and ship design personnel in 30countries.Wärtsilä had 18,806 (18,268) employees at the end of September. Theaverage number of personnel during January-September 2009 totalled18,897 (17,386). Services had 11,318 employees (10,623), a growth of7%. The growth is mainly due to the expansion of the network,recruitments in relation to new O&M contracts and the commissioningof Wärtsilä Ship Power's and Power Plants' all time high deliveries.SUSTAINABLE DEVELOPMENTIn the third quarter Wärtsilä signed the United Nations GlobalCompact initiative and was registered as a participant by the UNGlobal Compact Office. With this action Wärtsilä further consolidatesits commitment to sustainable business practices, and to thecompact's underlying principles in the areas of human rights, labour,the environment and anti-corruption.CHANGES IN MANAGEMENTThe following appointments have been made to Wärtsilä Corporation'sBoard of Management, with effect from 1 August 2009:Christoph Vitzthum (40) MSc (Econ.) has been appointed Group VicePresident, Services.Vesa Riihimäki (43) MSc (Eng.) has been appointed Group VicePresident, Power Plants and a member of the Board of Management.SHARES AND SHAREHOLDERSSHARES ON HELSINKI EXCHANGES30 September 2009 Number of Number of Number of shares Shares votes traded 1-9/2009WRT1V 98,620,565 98,620,565 110,203,9291. Jan - 30 Sept 2009 High Low Average 1) CloseShare price 30.91 15.81 22.78 27.381) Trade-weighted average price 30 Sept. 2009 30 Sept. 2008Market capitalisation, 2,700 2,905EUR millionForeign shareholders 46.2% 49.5%DECISIONS TAKEN BY THE ANNUAL GENERAL MEETINGWärtsilä's Annual General Meeting held on 11 March 2009 approved thefinancial statements and discharged the members of the Board ofDirectors and the company's President & CEO from liability for thefinancial year 2008. The Meeting approved the Board of Directors'proposal to pay a dividend of EUR 1.50 per share totalling EUR 148million. Dividends were paid on 23 March 2009.The Annual General Meeting decided that the Board of Directors shallhave six members. The following were elected to the Board: Ms MaaritAarni-Sirviö, Mr Kaj-Gustaf Bergh, Mr Kari Kauniskangas, Mr AnttiLagerroos, Mr Bertel Langenskiöld and Mr Matti Vuoria.The firm of authorised public accountants KPMG Oy Ab, was appointedas the company's auditors.Organisation of the Board of DirectorsThe Board of Directors of Wärtsilä Corporation elected AnttiLagerroos as its chairman and Matti Vuoria as the deputy chairman.The Board decided to establish an Audit Committee, a NominationCommittee and a Compensation Committee. The Board appointed fromamong its members, the following members to the Committees:Audit Committee:Antti Lagerroos, chairmanMaarit Aarni-SirviöBertel LangenskiöldNomination Committee:Antti Lagerroos, chairmanMatti VuoriaKaj-Gustaf BerghCompensation Committee:Antti Lagerroos, chairmanMatti VuoriaBertel LangenskiöldRISKS AND BUSINESS UNCERTAINTIESDue to the uncertainty in the shipping industry the main risks inShip Power remain the slippage of ship yard delivery schedules and itseems probable that some orders will be rescheduled or cancelled. Asa result of this development, Wärtsilä sees a cancellation risk ofapproximately EUR 650 million.In the Power Plant business, the impact from the financial crisis canmainly be seen in timing of bigger projects.In Services, the biggest risks still relate to a furtherdeterioration of the underlying situation within the shippingindustry leading to larger scale lay-ups of ships, which could reducedemand for maintenance and services within this segment.The current market situation has impacted the whole supply chain andWärtsilä is monitoring the stability of its supplier base. The risklevel has not significantly changed during the period.The annual report for 2008 contains a thorough description ofWärtsilä's risks and risk management.MARKET OUTLOOKMaritime freight rates are still on low levels. The lower newbuilding prices have attracted some owners to contract new vessels.The overall situation is still challenging and it is difficult tojudge which direction the markets will take next. Wärtsilä's activityin many segments of shipping is valuable as the weakness in somesegments is likely to continue at least another two years.Wärtsilä Power Plants estimates to see improved order intake levelsalong with the financing sector recovery and remains in a goodposition to maintain its market shares.Services continues stable and the large installed base, extensivenetwork, as well as the need for environmental upgrades provide asolid market base.WÿRTSILÿ'S PROSPECTS FOR 2009 REITERATEDDespite the risk of cancellations and the nonrecurring restructuringitems booked in the second quarter, the order book for 2009 shouldsupport a 10-20 percent growth in net sales for 2009, which wouldmaintain profitability at last year's good level.WÿRTSILÿ INTERIM REPORT JANUARY - SEPTEMBER 2009This interim financial report is prepared in accordance with IAS 34(Interim Financial Reporting) using the same accounting policies andmethods of computation as in the annual financial statements for2008. All figures in the accounts have been rounded and consequentlythe sum of individual figures can deviate from the presented sumfigure.Use of estimatesThe preparation of the financial statements in accordance with IFRSrequires management to make estimates and assumptions that affect thevaluation of the reported assets and liabilities and otherinformation, such as contingent liabilities and the recognition ofincome and expenses in the income statement. Although the estimatesare based on the management's best knowledge of current events andactions, actual results may differ from the estimates.IFRS amendmentsOf the amended International Financial Reporting Standards (IFRS) andinterpretations mandatory as of 1 January 2009 the following areapplicable to the Group reporting:- IFRS 8 Operating Segments- IAS 23 Borrowing Cost- IAS 1 Presentation of financial Statement- IFRIC 16 Hedges of Net Investment in a foreign OperationThe adaption of the revised standards and interpretations does nothave any material effect on the interim report.This interim report is unaudited.CONDENSED INCOME STATEMENTMEUR 1-9/2009 1-9/2008 2008Net sales 3 741 3 082 4 612Other income 39 16 26Expenses -3 279 -2 702 -4 015Depreciation and impairment -91 -68 -99Share of profit of associates and jointventures 5Operating result 413 328 525Financial income and expenses -25 5 -9Profit before taxes 388 333 516Income taxes -111 -91 -127Profit for the financial period 277 242 389Attributable to:Owners of the parent 273 236 380Non-controlling interest 4 6 9Total 277 242 389Earnings per share attributable to equity holders of theparent company:Earnings per share, EUR 2,77 2,42 3,88Diluted earnings per share, EUR 2,77 2,42 3,88STATEMENT OF COMPREHENSIVE INCOMEProfit for the financial period 277 242 389Other comprehensive income after tax:Exchange differences on translatingforeign operations 13 -3 -27Investments available for sale 21 -32 -37Cash flow hedges 24 -20 -44Share of other comprehensive income of associates and jointventures -1Other income/expenses 6Other comprehensive income for the period 58 -54 -103Total comprehensive income for the period 336 188 286Total comprehensive income attributableto:Owners of the parent 331 181 277Non-controlling interest 5 7 9 336 188 286CONDENSED BALANCE SHEET 30 Sep. 31 Dec.MEUR 30 Sep. 2009 2008 2008Non-current assetsIntangible assets 791 794 793Property, plant and equipment 465 408 446Equity in associates and joint ventures 53 43 41Investments available for sale 134 120 106Deferred tax receivables 77 73 85Other receivables 26 18 26 1 545 1 456 1 498Current assetsInventories 1 843 1 638 1 656Other receivables 1 285 1 286 1 392Cash and cash equivalents 262 158 197 3 390 3 082 3 245Assets 4 935 4 538 4 743Shareholders' equityShare capital 336 336 336Other shareholders' equity 1 031 753 848Total equity attributable to equityholders of the parent 1 367 1 089 1 184Minority interest 12 14 15Total shareholders' equity 1 379 1 102 1 199Non-current liabilitiesInterest-bearing debt 622 439 448Deferred tax liabilities 89 83 86Other liabilities 284 611 394 994 1 133 927Current liabilitiesInterest-bearing debt 230 99 216Other liabilities 2 331 2 203 2 400 2 561 2 302 2 616Total liabilities 3 556 3 436 3 544Shareholders' equity and liabilities 4 935 4 538 4 743CONDENSED CASH FLOW STATEMENTMEUR 1-9/2009 1-9/2008 2008Cash flow from operating activities:Profit before taxes 388 333 516Depreciation and impairment 91 68 99Financial income and expenses 25 -6 9Selling profit and loss of fixed assets andother adjustments -8 -2 2Share of profit of associates and jointventures -5 -1Changes in working capital -204 -62 -250Cash flow from operating activities beforefinancial items and taxes 289 331 377Net financial items and income taxes -147 -75 -99Cash flow from operating activities 142 255 278Cash flow from investing activities:Investments in shares and acquisitions -15 -131 -198Net investments in tangible and intangibleassets -82 -103 -168Proceeds from sale of shares -19 9 30Cash flow from other investing activities 4 7 8Cash flow from investing activities -113 -219 -329Cash flow from financing activities:New long-term loans 229 211 260Amortization and other changes in long-termloans -67 -55 -4Changes in short term loans and otherfinancing activities 30 91 129Dividends paid -156 -411 -412Cash flow from financing activities 36 -164 -26Change in liquid funds, increase (+) /decrease (-) 65 -127 -76Cash and cash equivalents at beginning ofperiod 197 296 296Joint ventures' cash and cash equivalents -8 -18Fair value adjustments, investments 1 1Exchange rate changes -1 -4 -6Cash and cash equivalents at end of period 262 158 197STATEMENT OF CHANGES INSHAREHOLDERS' EQUITY Total equity attributable to equity holdersMEUR of the parent Minority Total interest equity Fair value Share and Share issue Translation other Retained capital premium differences reserves earningsShareholders'equity on 1January 2009 336 61 -27 50 764 15 1 199Dividends -148 -8 -156Totalcomprehensiveincome forthe period 16 41 274 5 336Shareholders'equity on 30September2009 336 61 -11 91 890 12 1 379Shareholders'equity on 1January 2008 336 61 3 127 788 10 1 325Dividends -408 -3 -411Totalcomprehensiveincome forthe period -3 -52 236 7 188Shareholders'equity on 30September2008 336 61 0 75 617 14 1 102Geographical distribution of netsales Europe Asia Americas Other GroupMEURNet sales 1-9/2009 1 120 1 385 907 329 3 741Net sales 1-9/2008 1 119 1 201 471 291 3 082INTANGIBLE ASSETS AND PROPERTY, PLANT & EQUIPMENTMEUR 1-9/2009 1-9/2008 2008Intangible assetsBook value at 1 January 793 646 646Changes in exchange rates 16 -3 -30Acquisitions 12 156 191Additions 13 22 29Depreciation and impairment -43 -28 -42Disposals and intra-balance sheet transfer 1 -1Book value at end of period 791 794 793Property, plant and equipmentBook value at 1 January 446 377 377Changes in exchange rates 1 2 -3Acquisitions 1 9 9Additions 69 88 139Depreciation and impairment -49 -40 -57Joint ventures' opening balances -20 -6Disposals and intra-balance sheet transfer -4 -7 -13Book value at end of period 465 408 446GROSS CAPITAL EXPENDITUREMEUR 1-9/2009 1-9/2008 2008Investments in securitiesand acquisitions 15 162 198Intangible assets andproperty, plant andequipment 82 110 168Group 98 272 366During the review period investment in the enlargement of propulsionequipment manufacturing in the Netherlands and China amounted to EUR7 million, and Wärtsilä had commitments related to the enlargementsamounting to EUR 1 million at the end of the review period. Wärtsiläcentralises warehousing and logistics of spare parts by investing ina new distribution centre in the Netherlands. The investments to thenew distribution centre amounted to EUR 3 million during the reviewperiod and commitments related to the investment were EUR 63 millionat the end of the review period.INTEREST-BEARING LOAN CAPITALMEUR 30 Sep. 2009 30 Sep. 2008 31 Dec. 2008Long-term liabilities 622 439 448Current liabilities 230 100 216Loan receivables -15 -12 -12Cash and bank balances -262 -158 -197Net 575 369 455FINANCIAL RATIOS 1-9/2009 1-9/2008 2008Earnings per share, EUR 2,77 2,42 3,88Equity per share, EUR 13,86 11,04 12,01Solvency ratio, % 35,4 34,7 34,3Gearing 0,43 0,34 0,39PERSONNEL 1-9/2009 1-9/2008 2008On average 18 897 17 386 17 623At end of period 18 806 18 268 18 812CONTINGENT LIABILITIESMEUR 30 Sep. 2009 30 Sep. 2008 31 Dec. 2008Mortgages 56 13 61Chattel mortgages 9 7 10Total 66 21 71Guarantees and contingentliabilitieson behalf of Group companies 809 436 664on behalf of associatedcompanies 8Nominal amount of rentsaccordingto leasing contracts 81 74 87Total 897 510 751NOMINAL VALUES OF DERIVATIVE INSTRUMENTSMEUR Total amount of which closedInterest rate swaps 90Foreign exchange forward contracts 1 411 285Currency options, purchased 52COMMODITY DERIVATIVES Amount in of which metric tons closedOil swaps 4 275Copper futures 300CONDENSED INCOMESTATEMENT, QUARTERLYMEUR 7-9/2009 4-6/2009 1-3/2009 10-12/2008 7-9/2008 4-6/2008Net sales 1 167 1 333 1 241 1 530 1 140 1 092Other income 20 13 5 10 6 5Expenses -1 026 -1 167 -1 087 -1 313 -996 -953Depreciationand impairment -31 -30 -30 -31 -26 -21Share of profitof associatesand jointventures 3 1 1 1 -1 1Operatingresult 133 149 130 197 123 124Financialincome andexpenses -9 -9 -7 -14 5 7Profit beforetaxes 125 141 123 183 127 131Income taxes -38 -39 -34 -36 -30 -36Profit for thefinancialperiod 87 102 89 147 97 96Attributableto:Owners of theparent 86 100 87 144 95 94Non-controllinginterest 1 2 1 3 3 2Total 87 102 89 147 97 96Earnings per share attributableto equity holders of the parentcompany:Earnings pershare, EUR 0,87 1,01 0,89 1,46 0,97 0,96CALCULATION OF FINANCIAL RATIOSEarnings per share (EPS)Profit for the period attributable to equity holders of the parentcompanyAdjusted number of shares over the periodEquity per shareEquity attributable to equity holders of the parentcompanyAdjusted number of shares at the end of the periodSolvency ratioShareholders' equity x 100Balance sheet total - advances receivedGearingInterest-bearing liabilities - cash and bank balancesShareholders' equity21 October 2009Wärtsilä CorporationBoard of Directorshttp://hugin.info/131481/R/1349281/325111.pdfThis announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 22.10.2009 - 07:32 Uhr
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Die Pressemitteilung mit dem Titel:
"WÿRTSILÿ CORPORATION INTERIM REPORT JANUARY-SEPTEMBER 2009"
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Wärtsilä Oyj Abp (Nachricht senden)
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