Resilient profitability and strong cash flow in challenging markets
"Wärtsilä’s performance in 2013 was impacted by the continued uncertainty in the global economy. Due to unfavorable exchange rates and some delayed deliveries, the net sales development was slightly weaker than expected. However, profitability remained resilient despite the lower level of sales. Supported by a strong fourth quarter and a focus on cost control, our full year operational profitability reached 11.2%. Cash flow from operating activities developed well, increasing to EUR 578 million during the year. There was significant improvement in the marine markets during 2013, and ordering was active in all major vessel segments. In the power plant markets delays in customer decision-making continued. This impacted our Group order intake levels, which decreased by 1% compared to the previous year. The service markets remained stable. Long-term agreements continue to be a strategic focus area for the Services business, and I am pleased that several such contracts were signed during the year.
Our market outlook for 2014 remains cautious, although a slight improvement may be seen in certain areas. Based on our current order book and project pipeline we expect some growth in net sales during 2014 and profitability to remain at a similar level to that of 2013."
BJÖRN ROSENGREN President & CEO