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Operating result and profitability

The fourth quarter operating result was EUR 225 million (231), which represents 15.6% of net sales (14.8). The comparable operating result was EUR 244 million (253), or 16.9% of net sales (16.3). Items affecting comparability amounted to EUR 19 million (22), of which EUR 18 million (22) related to restructuring programmes and EUR 1 million (0) to acquisitions and other costs. The comparable adjusted EBITA was EUR 254 million (262), or 17.5% of net sales (16.8). Purchase price allocation amortisation amounted to EUR 10 million (9).

The operating result for the review period January-December 2017 was EUR 552 million (532), which represents 11.2% of net sales (11.1). The comparable operating result was EUR 590 million (583), or 12.0% of net sales (12.1). Items affecting comparability amounted to EUR 37 million (51), of which EUR 36 million (48) was related to restructuring programmes and EUR 2 million (3) to acquisitions and other costs. The comparable adjusted EBITA was EUR 626 million (618), or 12.7% of net sales (12.9). Purchase price allocation amortisation amounted to EUR 36 million (35).

Wärtsilä’s operating result was affected by a provision related to long-term incentive schemes, which amounted to EUR 4 million (5) in the fourth quarter and EUR 40 million (5) in the review period January-December 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 company executives.

Financial items for the review period January-December 2017 amounted to EUR -47 million (-53). Financial items include exchange rate losses related to terminated hedges. Net interest totalled EUR -8 million (-11). Profit before taxes amounted to EUR 506 million (479). Taxes amounted to EUR 122 million (123), implying an effective tax rate of 24.2% (25.6). The profit for the financial period amounted to EUR 383 million (357). Earnings per share were 1.95 euro (1.79) and the equity per share was 12.02 euro (11.60). The return on investments (ROI) was 18.9% (17.1), while return on equity (ROE) was 16.3% (15.6).

Measures of profit and items affecting comparability
MEUR 10-12/2017 10-12/2016 1-12/2017 1-12/2016
Comparable adjusted EBITA 254 262 626 618
Purchase price allocation amortisation -10 -9 -36 -35
Comparable operating result 244 253 590 583
Items affecting comparability -19 -22 -37 -51
Operating result 225 231 552 532

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