CEO review

“Our third quarter operations developed in line with expectations. Net sales grew by 11% and profitability was 11.4%.

BJÖRN ROSENGREN President & CEO

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Net sales and profitability developed well in a challenging market environment


"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."

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BJÖRN ROSENGREN President & CEO

Prospects for 2013 revised

Wärtsilä specifies its net sales prospects for 2013. Based on the current order book, net sales for 2013 is expected to grow by 0-5%. Previously, Wärtsilä estimated that its net sales would grow by 0-10%. Wärtsilä reiterates its expectations that operational profitability (EBIT% before non-recurring items) will be around 11%.

Third quarter highlights
  • 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 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)
1-9/2013 review period highlights
  • 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 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 1.24 euro (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)
Key figures
Restated3 Restated3 Restated3
MEUR 7-9/2013 7-9/2012 Change 1-9/2013 1-9/2012 Change 2012
Order intake 1 097 1 275 -14% 3 520 3 583 -2% 4 940
Order book at the end of the period 4 568 4 724 -3% 4 492
Net sales 1 209 1 087 11% 3 243 3 191 2% 4 725
Operating result (EBITA)1 146 122 20% 343 354 -3% 552
% of net sales 12.1 11.2 10.6 11.1 11.7
Operating result (EBIT)2 138 113 22% 319 328 -3% 517
% of net sales 11.4 10.4 9.8 10.3 10.9
Profit before taxes 126 99 326 291 453
Earnings/share, EUR 0.48 0.38 1.24 1.09 1.72
Cash flow from operating activities 139 121 261 -34 153
Net interest-bearing debt at the end of the period 534 698 567
Gross capital expenditure 84 462 513
Gearing 0.31 0.42 0.32

1 EBITA is shown excluding non-recurring items of EUR 10 million (16) and intangible asset amortisation related to acquisitions of EUR 24 million (26) during the review period January-September 2013. During the third quarter, non-recurring items amounted to EUR 8 million (3) and intangible asset amortisation related to acquisitions to EUR 8 million (8).
2 EBIT is shown excluding non-recurring items.
3 Figures have been restated due to changes in pension accounting (IAS 19 Employee benefits).

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