CEO review

“Supported by a very strong fourth quarter, Wärtsilä's full year net sales grew by 12% with profitability at 10.9%.

BJÖRN ROSENGREN President & CEO

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Net sales back to growth with stable profitability


“I am pleased with our result for the year 2012, which was a year marked by difficult conditions in the global economy. Supported by a very strong fourth quarter, Wärtsilä's full year net sales grew by 12% with profitability at 10.9%. The order intake grew by 9%, with strong development in Ship Power orders, especially in the offshore markets.

During 2012, we closed our largest ever acquisition with the purchase of Hamworthy. This supports our growth strategy in the marine gas, offshore and environmental solutions markets. Interest in marine gas solutions continued to be strong and the orders received demonstrate our leading position in the dual-fuel markets. As regards environmental solutions, market activity showed an upward trend. In the growing offshore markets, our position is good, not least in Brazil where we secured several important orders. Power Plants received two of their largest orders ever, and Wärtsilä is today recognised as a serious contender in the market for power plants above 500 MWs of capacity. I am also very pleased that the Services net sales have returned to growth and that important long-term service contracts are being secured in tough market conditions.

Looking at 2013, the economic situation continues to be uncertain, however our outlook for the markets remains stable. Supported by the solid order book, we see some growth in net sales next year and believe we can maintain our profitability on approximately the same level as in 2012.”

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BJÖRN ROSENGREN President & CEO

Prospects for 2013

Wärtsilä expects its net sales for 2013 to grow by 0-10% and its operational profitability (EBIT% before non-recurring items) to be around 11%.

Q4 highlights
  • Order intake increased 9% to EUR 1,357 million (1,250)
  • Net sales increased 24% to EUR 1,533 million (1,238)
  • Book-to-bill 0.89 (1.01)
  • Operating result (EBIT) EUR 186 million or 12.2% of net sales (EUR 145 million or 11.7%)
  • EBITA EUR 196 million or 12.8% of net sales (EUR 149 million or 12.1%)
  • Earnings per share amounted to EUR 0.62 (0.45)
  • Cash flow from operating activities EUR 187 million (-71)
Q1-Q4 review period highlights
  • Order intake increased 9% to EUR 4,940 million (4,516)
  • Net sales increased 12% to EUR 4,725 million (4,209)
  • Book-to-bill 1.05 (1.07)
  • Operating result (EBIT) EUR 515 million or 10.9% of net sales (EUR 469 million or 11.1%)
  • EBITA EUR 550 million or 11.6% of net sales (EUR 485 million or 11.5%)
  • At the end of the period the order book increased 12% to EUR 4,492 million (4,007)
  • Earnings per share amounted to 1.72 euro (1.44)
  • Cash flow from operating activities EUR 153 million (232)
  • Dividend proposal 1.00 euro/share
Key figures
MEUR 10-12/2012 10-12/2011 Change 1-12/2012 1-12/2011 Change
Order intake 1 357 1 250 9% 4 940 4 516 9%
Order book at the end of the period 4 492 4 007 12%
Net sales 1 533 1 238 24% 4 725 4 209 12%
Operating result (EBITA)1 196 149 32% 550 485 13%
% of net sales 12.8% 12.1% 11.6% 11.5%
Operating result (EBIT)2 186 145 28% 515 469 10%
% of net sales 12.2% 11.7% 10.9% 11.1%
Profit before taxes 161 131 452 429
Earnings/share, EUR 0.62 0.45 1.72 1.44
Cash flow from operating activities 187 -71 153 232
Net interest-bearing debt at the end of the period 567 58
Gross capital expenditure 513 187
Gearing 0.31 0.04

1 EBITA is shown excluding non-recurring items of EUR 34 million (24) and intangible asset amortisation related to acquisitions of EUR 35 million (16) during the review period January-December 2012. During the fourth quarter, non-recurring items amounted to EUR 17 million (7) and intangible asset amortisation related to acquisitions to EUR 10 million (4).
2 EBIT is shown excluding non-recurring items.

 

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