Wärtsilä Corporation Half year financial report

January-June 2017

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"The first half of 2017 was characterised by good development in net sales, largely due to an increase in the number of power plant deliveries, as well as by solid earnings."

Jaakko Eskola, President & CEO


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Growth in orders and net sales in the first half of 2017

“The first half of 2017 was characterised by good development in net sales, largely due to an increase in the number of power plant deliveries, as well as by solid earnings. Order intake developed well in all business areas. The power plant project pipeline has continued to materialise into orders at a healthy pace, thanks to the growing interest in flexible, gas-fired technologies. Furthermore, although the marine markets remain challenging, a favourable vessel contracting mix supported the development of Marine Solutions’ orders received, particularly in the second quarter. Activity in the service markets was broadly stable, with healthy demand for long-term agreements. I am pleased that our customers continue to see the value of entering into service partnerships with Wärtsilä, which provides a good basis for future development.

Wärtsilä’s ambition is to become an agile technology company dedicated to improving customers’ operations by being a leader in smart marine and smart energy ecosystems. The recent acquisitions of Eniram and Greensmith, as well as our cleantech innovations, demonstrate our active role in enabling sustainable societies and in helping customers to benefit from smart technologies. To support the development of our digital services and products, we are launching digital acceleration centres where promising ideas are developed and co-created into service concepts and products together with customers and partners. I am confident that the investments into our company-wide digital transformation will drive new business opportunities, ultimately strengthening our competitive positioning, and supporting our long-term target of profitable growth.”

Jaakko Eskola President & CEO

Wärtsilä's prospects for 2017

Wärtsilä's overall development in 2017 is expected to be relatively unchanged from the previous year. Demand by business area is anticipated to be as follows:

  • Solid in Services with growth opportunities in selected regions and segments.
  • Good in Energy Solutions, thanks to increasing electricity demand in the emerging markets and the global shift towards renewable energy sources, which will support the need for distributed, flexible, gas-fired power generation.
  • Solid in Marine Solutions (raised from soft), thanks to a favourable vessel contracting mix. The general marine market environment remains challenging, as the merchant, gas carrier, and offshore segments continue to suffer from overcapacity, slow trade growth, and the financial constraints of customers.

Wärtsilä’s current order book for 2017 deliveries is EUR 2,087 million (2,061). Wärtsilä will continue to focus on improving efficiency, which is expected to partially offset lower volumes in the marine markets. The pricing environment in Energy Solutions’ markets has stabilised, but the order book is still impacted by the competitive pressure seen in previous years. The good performance in Services is expected to continue.


Second quarter

  • Order intake increased 14% to EUR 1,363 million (1,194)
  • Net sales increased 8% to EUR 1,292 million (1,196)
  • Book-to-bill 1.05 (1.00)
  • Comparable operating result increased to EUR 126 million (122), which represents 9.7% of net sales (10.2)
  • Earnings per share increased to 0.38 euro (0.19)
  • Cash flow from operating activities decreased to EUR 2 million (202)

Review period January-June 2017

  • Order intake increased 13% to EUR 2,776 million (2,465)
  • Net sales increased 6% to EUR 2,299 million (2,163)
  • Book-to-bill 1.21 (1.14)
  • Comparable operating result increased to EUR 211 million (206), which represents 9.2% of net sales (9.5)
  • Earnings per share increased to 0.66 euro (0.49)
  • Cash flow from operating activities decreased to EUR 3 million (189)
  • Order book at the end of the period amounted to EUR 5,065 million (5,083)
Key figures
MEUR 4-6/2017 4-6/2016 Change 1-6/2017 1-6/2016 Change 2016
Order intake 1 363 1 194 14% 2 776 2 465 13% 4 927
Order book at the end of the period 5 065 5 083 0% 4 696
Net sales 1 292 1 196 8% 2 299 2 163 6% 4 801
Operating result1 117 96 22% 197 179 10% 532
% of net sales 9.1 8.0 8.6 8.3 11.1
Comparable operating result 126 122 3% 211 206 2% 583
% of net sales 9.7 10.2 9.2 9.5 12.1
Comparable adjusted EBITA 134 131 3% 228 224 2% 618
% of net sales 10.4 10.9 9.9 10.3 12.9
Profit before taxes 103 58 77% 177 138 28% 479
Earnings/share, EUR 0.38 0.19 0.66 0.49 1.79
Cash flow from operating activities 2 202 3 189 613
Net interest-bearing debt at the end of the period 299 517 150
Gross capital expenditure 20 71 146
Gearing 0.14 0.25 0.07
1Items affecting comparability in the second quarter of 2017 included costs related to restructuring programmes of EUR 8 million (26). During the review period January-June 2017 restructuring costs amounted to EUR 14 million (27).

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