Wärtsilä Corporation Interim Report Q1 2015

“Services’ development was clearly the highlight of the first quarter. The increased maintenance activity seen towards the end of last year continued into the first quarter, boosting both order intake and sales.“

Björn Rosengren,
President and CEO

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Services and Power Plants’ ordering activity compensates for weaker marine markets

“As anticipated, the year 2015 started with a slow marine market. Low oil prices are causing a wait and see attitude among offshore customers that, combined with subdued vessel contracting, resulted in fewer orders being received within the Ship Power business. In the Power Plants business, market sentiment is improving. Economic growth in the emerging markets and electricity consumption growth in the USA supported power plant investments, and our quotation activity indicates a continued good level of underlying customer demand.

Services’ development was clearly the highlight of the first quarter. The increased maintenance activity seen towards the end of last year continued into the first quarter, boosting both order intake and sales. Services’ sales grew by 11%, which compensated for the lower delivery volumes in the Ship Power and Power Plants businesses. Consequently, Group sales reached a similar level to that of the corresponding period last year and profitability improved somewhat to 10.1%. We remain committed to our guidance for 2015, and continue to see some opportunities for sales growth and improved profitability despite the prevailing market uncertainties.”

björn-autograph.png

Björn Rosengren, President and CEO

Wärtsilä's prospects for 2015 unchanged

Wärtsilä expects its net sales for 2015 to grow by 0-10% and its operational profitability (EBIT% before non-recurring items) to be between 12.0-12.5%. The guidance excludes the impact of the L-3 Marine Systems International acquisition.

Highlights of the review period January-March 2015

  • Order intake increased 15% to EUR 1,285 million (1,115)
  • Net sales decreased 1% to EUR 988 million (997)
  • Book-to-bill 1.30 (1.12)
  • Operating result before non-recurring items EUR 100 million, or 10.1% of net sales (EUR 98 million or 9.8%)
  • Earnings per share 0.43 euro (0.31)
  • Cash flow from operating activities EUR 37 million (111)
  • Order book at the end of the period increased 12% to EUR 4,931 million (4,384)

Key figures

MEUR 1-3/2015 1-3/2014 Change 2014
Order intake 1 285 1 115 15% 5 084
Order book at the end of the period 4 931 4 384 12% 4 530
Net sales 988 997 -1% 4 779
Operating result (EBIT)1 100 98 2% 569
% of net sales 10.1 9.8 11.9
Profit before taxes 82 89 494
Earnings/share, EUR 0.43 0.31 1.76
Cash flow from operating activities 37 111 452
Net interest-bearing debt at the end of the period 251 390 94
Gross capital expenditure 18 19 94
Gearing 0.14 0.22 0.05
1 EBIT is shown excluding non-recurring items. Wärtsilä recognised non-recurring items amounting to EUR 47 million during 2014, of which EUR 6 million was recognised in the first quarter.
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