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Net sales and operating result

Wärtsilä’s third quarter net sales decreased by 16% to EUR 1,118 million (1,330) compared to the corresponding period last year. Wärtsilä Marine accounted for 69% of net sales and Wärtsilä Energy for 31%. Services related net sales increased by 1% to EUR 578 million (571). Adjusting for the effects of currency translation, services related net sales remained stable.

The third quarter operating result amounted to EUR 11 million (141), which represents 1.0% of net sales (10.6). The comparable operating result was EUR 39 million (141), or 3.5% of net sales (10.6). Items affecting comparability included costs of EUR 28 million (0) primarily related to restructuring programmes. The comparable operating result for Wärtsilä Marine amounted to EUR 49 million (68) or 6.3% of net sales (10.1), while the comparable operating result for Wärtsilä Energy amounted to EUR -9 million (73) or -2.7% of net sales (11.2). The comparable adjusted EBITA was EUR 49 million (152), or 4.4% of net sales (11.5). Purchase price allocation amortisation amounted to EUR 10 million (11).

The third quarter operating result includes a charge of EUR 65 million related to cost overruns in certain large and complex project deliveries in the Marine and Energy businesses, of which EUR 17 million was recognised in Wärtsilä Marine and EUR 48 million in Wärtsilä Energy.

Wärtsilä’s January-September net sales decreased by 4% to EUR 3,486 million (3,642) compared to the corresponding period last year, due to fewer power plant deliveries. Wärtsilä Marine accounted for 66% of net sales and Wärtsilä Energy for 34%. Services related net sales increased by 4% to EUR 1,762 million (1,688). Adjusting for the effects of currency translation, services related net sales increased by 3%. Of Wärtsilä’s net sales, approximately 66% was EUR denominated, 20% USD denominated, with the remainder being split between several currencies.

The January-September operating result amounted to EUR 198 million (337), which represents 5.7% of net sales (9.2). The comparable operating result was EUR 254 million (352), or 7.3% of net sales (9.7). Items affecting comparability included costs of EUR 56 million (15) primarily related to restructuring programmes. The comparable operating result for Wärtsilä Marine amounted to EUR 185 million (190) or 8.0% of net sales (9.6), while the comparable operating result for Wärtsilä Energy amounted to EUR 69 million (162) or 5.9% of net sales (9.8). The comparable adjusted EBITA was EUR 285 million (384), or 8.2% of net sales (10.5). Purchase price allocation amortisation amounted to EUR 31 million (32).

The operating result for January-September includes a charge of EUR 84 million related to the project cost overruns mentioned above, of which EUR 17 million was recognised in Wärtsilä Marine and EUR 67 million in Wärtsilä Energy.

Financial items amounted to EUR -36 million (-29) during the period January-September. Net interest totalled EUR -9 million (-5). Profit before taxes amounted to EUR 162 million (308). Taxes amounted to EUR 45 million (75), implying an effective tax rate of 28.0% (24.4). Earnings per share were 0.20 euro (0.39) and the equity per share was 3.81 euro (3.90). The return on investments (ROI) was 12.8% (18.6), while the return on equity (ROE) was 11.7% (17.5).

Net sales and operating result by reporting segment
MEUR 7-9/2019 7-9/2018 Change 1-9/2019 1-9/2018 Change 2018
Net sales 1 118 1 330 -16% 3 486 3 642 -4% 5 174
Marine 776 680 14% 2 310 1 984 16% 2 815
Energy 342 650 -47% 1 176 1 658 -29% 2 359
Operating result 11 141 -92% 198 337 -41% 543
Marine 21 69 -69% 137 177 -23% 349
Energy -10 73 -114% 61 159 -62% 194
Operating result, % of net sales 1.0 10.6 5.7 9.2 10.5
Marine 2.7 10.1 5.9 8.9 12.4
Energy -3.0 11.2 5.2 9.6 8.2
Comparable operating result 39 141 -72% 254 352 -28% 577
Marine 49 68 -29% 185 190 -2% 380
Energy -9 73 -113% 69 162 -57% 197
Comparable operating result,
% of net sales
3.5 10.6 7.3 9.7 11.2
Marine 6.3 10.1 8.0 9.6 13.5
Energy -2.7 11.2 5.9 9.8 8.4

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