CEO review

“The second quarter development was reasonable considering the current economic situation, with net sales increasing by 5% and profitability at 9.6%.

BJÖRN ROSENGREN President & CEO

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Stable development in the first half of 2013


“The second quarter development was reasonable considering the current economic situation, with net sales increasing by 5% and profitability at 9.6%. We continue to work towards reaching this year’s growth and profitability targets. Marine markets are showing some signs of improvement, with the offshore and specialised vessel segments continuing to be active. Furthermore, competitive new building prices and the increased fuel efficiency of modern vessels are attracting investments in the merchant segment. Overall order intake levels were lower than in the previous year, especially in Power Plants where we are experiencing delays in customer decision-making. We have seen some recovery in the service markets, which was reflected in the Services’ net sales increase of 4%. Supported by our solid order book and the stable Services business, our prospects for 2013 remain unchanged.”

björn-autograph.png

BJÖRN ROSENGREN President & CEO

Prospects for 2013 unchanged

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%.

Second quarter highlights
  • Order intake decreased 11% to EUR 1,071 million (1,198)
  • Net sales increased 5% to EUR 1,152 million (1,099)
  • Book-to bill 0.91 (1.09)
  • Operating result EUR 111 million, or 9.6% of net sales (EUR 113 million or 10.3%)
  • EBITA EUR 119 million, or 10.3% of net sales (EUR 123 million or 11.2%)
  • Earnings per share EUR 0.39 (0.38)
  • Cash flow from operating activities EUR 38 million (-183)
1-6/2013 review period highlights
  • Order intake increased 5% to EUR 2,424 million (2,308)
  • Net sales decreased 3% to EUR 2,034 million (2,104)
  • Book-to bill 1.18 (1.10)
  • Operating result EUR 181 million, or 8.9% of net sales (EUR 215 million or 10.2%)
  • EBITA EUR 198 million, or 9.7% of net sales (EUR 232 million or 11.0%)
  • Earnings per share 0.76 euro (0.72)
  • Cash flow from operating activities EUR 122 million (-154)
  • Order book at the end of the period increased by 5% to EUR 4,763 million (4,515)
Key figures
MEUR 4-6/2013 Restated
4-6/2012
Change 1-6/2013 Restated
1-6/2012
Change Restated
2012
Order intake 1 071 1 198 -11% 2 424 2 308 5% 4 940
Order book at the end of the period 4 763 4 515 5% 4 492
Net sales 1 152 1 099 5% 2 034 2 104 -3% 4 725
Operating result (EBITA)1 119 123 -3% 198 232 -15% 552
% of net sales 10.3 11.2 9.7 11.0 11.7
Operating result (EBIT)2 111 113 -2% 181 215 -16% 517
% of net sales 9.6 10.3 8.9 10.2 10.9
Profit before taxes 104 98 200 192 453
Earnings/share, EUR 0.39 0.38 0.76 0.72 1.72
Cash flow from operating activities 38 -183 122 -154 153
Net interest-bearing debt at the end of the period 658 790 567
Gross capital expenditure 49 433 513
Gearing 0.40 0.50 0.32

1 EBITA is shown excluding non-recurring items of EUR 2 million (13) and intangible asset amortisation related to acquisitions of EUR 16 million (17) during the review period January-June 2013. During the second quarter, non-recurring items amounted to EUR 1 million (6) and intangible asset amortisation related to acquisitions to EUR 8 million (10).
2 EBIT is shown excluding non-recurring items. 

 

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