Thu 24 Oct 2013 09:11

Wärtsilä profitability up 11.4% in Q3


Profitability estimate remains unchanged at around 11% for 2013.



Finland's Wärtsilä Corporation has released its interim report for January-September 2013.

In the report, the company said that net sales increased 11% to EUR 1,209 million during the third quarter, whilst net sales for the first nine months of the year increased 2% to EUR 3,243 million. A summary of the company's results in the third quarter and between January and September has been provided below.

Third Quarter Highlihts

- Order intake decreased 14% to EUR 1,097 million (1,275)
- 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 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)

Commenting on the results, Björn Rosengren, president and CEO, said: "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," Rosengren remarked.

In its revised outlook for 2013, Wärtsilä forecast net sales for 2013 to grow by 0-5%. Previously, Wärtsilä estimated that its net sales would grow by 0-10%. The company also reiterated its expectations that operational profitability (EBIT% before non-recurring items) will be around 11%.

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