Net sales
Net sales for January-December 2015 developed in line with guidance, increasing by 5% to EUR 5,029 million (4,779), primarily due to improved service volumes. Net sales development for the Energy Solutions and Marine Solutions businesses was stable, totalling EUR 1,126 million (1,138) and EUR 1,720 million (1,702) respectively. Net sales from the Services business increased by 13% to EUR 2,184 million (1,939), supported by good development in all areas. Of the total net sales, Energy Solutions accounted for 22%, Marine Solutions for 34%, and Services for 43%.
Of Wärtsilä’s net sales, approximately 64% was EUR denominated, 21% USD denominated, with the remainder being split between several currencies.
Operating result and profitability
For the financial period January-December 2015, the operating result (EBIT) before non-recurring items was EUR 612 million (569). This represents 12.2% of net sales (11.9), which is within the guided 12.0-12.5% range. The increase in the operating result was primarily due to higher service volumes, the acquisition of L-3 Marine Systems International, and internal cost reductions. Including non-recurring items, the operating result was EUR 587 million (522) or 11.7% of net sales (10.9). The operating result (EBITA) excluding non-recurring items and purchase price allocation amortisation was EUR 643 million (594), or 12.8% of net sales (12.4). Non-recurring items amounted to EUR 25 million (47) during the financial period, of which EUR 19 million related to the restructuring measures announced in June and EUR 6 million to acquisitions and other costs. Purchase price allocation amortisation amounted to EUR 32 million (26).
Financial items amounted to EUR -34 million (-28). The increase in financial items is due to an intragroup loan denominated in Brazilian real, which resulted in unrealised exchange rate losses. Net interest totalled EUR -12 million (-9). Profit before taxes amounted to EUR 553 million (494). Taxes amounted to EUR 124 million (106), implying an effective tax rate of 22.5% (21.4). The profit for the financial period amounted to EUR 451 million (351). Earnings per share were EUR 2.25 (1.76) and the equity per share was EUR 11.16 (9.94). Return on investments (ROI) was 21.0% (20.3). Return on equity (ROE) was 20.2% (20.0).
