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Operating result and profitability

The second quarter operating result was EUR 117 million (96), or 9.1% of net sales (8.0). The comparable operating result was EUR 126 million (122), or 9.7% of net sales (10.2). Items affecting comparability included restructuring costs of EUR 8 million (26). The comparable adjusted EBITA was EUR 134 million (131), or 10.4% of net sales (10.9). Purchase price allocation amortisation amounted to EUR 9 million (9).

The operating result for the review period January-June 2017 was EUR 197 million (179), which represents 8.6% of net sales (8.3). The comparable operating result was EUR 211 million (206), or 9.2% of net sales (9.5). Items affecting comparability included costs related to restructuring programmes of EUR 14 million (27). The comparable adjusted EBITA was EUR 228 million (224), or 9.9% of net sales (10.3). Purchase price allocation amortisation amounted to EUR 17 million (17).

Wärtsilä’s operating result was negatively affected by a provision related to long-term incentive schemes, which amounted to EUR 16 million in the second quarter and EUR 27 million in the review period January-June 2017. The provision covers all three ongoing programmes. Wärtsilä’s three-year long-term incentive schemes are tied to the development of the company's share price, and they apply to approximately 100 directors.

Financial items for the review period January-June 2017 amounted to EUR -20 million (-41). Net interest totalled EUR -4 million (-6). Profit before taxes amounted to EUR 177 million (138). Taxes amounted to EUR 45 million (37), implying an effective tax rate of 25.3% (26.9). Earnings per share were 0.66 euro (0.49) and the equity per share was 10.79 euro (10.30). Return on investments (ROI) was 19.5% (17.5). Return on equity (ROE) was 18.4% (17.4).

Measures of profit and items affecting comparability
MEUR 4-6/2017 4-6/2016 1-6/2017 1-6/2016 2016
Comparable adjusted EBITA 134 131 228 224 618
Purchase price allocation amortisation -9 -9 -17 -17 -35
Comparable operating result 126 122 211 206 583
Items affecting comparability -8 -26 -14 -27 -51
Operating result 117 96 197 179 532

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