Wärtsilä Corporation Interim Report q1 2014

CEO review

In line with our expectations, first quarter net sales developed well with profitability at 8.9%. Favourable development was also seen in the operating cash flow.

–Björn Rosengren, President and CEO

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Healthy development in Ship Power and Services offsetting challenges in power generation markets

“In line with our expectations, first quarter net sales developed well with profitability at 8.9%. Favourable development was also seen in the operating cash flow. The power plant markets remain challenging with customers continuing to delay decision-making due to global economic uncertainty and emerging market currency fluctuations. However, activity in the marine market was at a healthy level and Ship Power performed well, which partly offset the current challenges within the power generation markets. Several orders were received for offshore support vessels and there was active ordering of dual-fuel solutions and gas handling systems for the merchant fleet. The demand for services was stable within both of our end markets. 

While the market situation continues to be volatile, we remain focused on improving efficiency and our competitive position. The restructuring measures announced in January have proceeded according to plan and are contributing to the efficiency improvement. Based on these measures, the current order book and a stable service market our prospects for 2014 remain unchanged.”

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Björn Rosengren, President and CEO

WÄRTSILÄ'S PROSPECTS FOR 2014 UNCHANGED

Wärtsilä expects its net sales for 2014 to grow by 0-10% and its operational profitability (EBIT% before non-recurring items) to be around 11%.


HIGHLIGHTS OF THE REVIEW PERIOD JANUARY-MARCH 2014

  • Order intake decreased 16% to EUR 1,142 million (1,352)

  • Net sales increased 15% to EUR 1,012 million (882)

  • Book-to-bill 1.13 (1.53)

  • Operating result before non-recurring items EUR 90 million, or 8.9% of net sales (EUR 70 million or 8.0%)

  • Earnings per share 0.31 euro (0.37)

  • Cash flow from operating activities EUR 111 million (84)

  • Order book at the end of the period decreased 10% to EUR 4,505 million (4,998)


KEY FIGURES

MEUR 1-3/2014 1-3/2013 Change 2013
Order intake 1 142 1 352 -16% 4 872
Order book at the end of the period 4 505 4 998 -10% 4 426
Net sales 1 012 882 15% 4 654
Operating result (EBIT)1 90 70 28% 520
% of net sales 8.9 8.0 11.2
Profit before taxes 2 81 96 507
Earnings/share, EUR 2 0.31 0.37 1.98
Cash flow from operating activities 111 84 578
Net interest-bearing debt at the end of the period 390 668 276
Gross capital expenditure 22 25 134
Gearing 0.22 0.42 0.15
1 EBIT is shown excluding non-recurring items of EUR 6 million (1) during the review period.
2 The comparison figures include the sale of Wärtsilä’s shares in Sato Oyj.