POSITIVE DEVELOPMENT IN ORDER INTAKE
This release is a summary of Wärtsilä’s Interim Report January-March 2017. The complete report is attached to this release as a pdf-file (Interim Report Q1 2017). It is also available at http://www.wartsilareports.com/en-US/2017/q1/frontpage/ and on the company website at www.wartsila.com.
HIGHLIGHTS OF THE REVIEW PERIOD JANUARY-MARCH 2017
- Order intake increased 11% to EUR 1,413 million (1,271)
- Net sales increased 4% to EUR 1,007 million (967)
- Book-to-bill 1.40 (1.31)
- Comparable operating result increased to EUR 86 million (84), which represents 8.5% of net sales (8.7)
- Earnings per share declined to 0.28 euro (0.30)
- Cash flow from operating activities increased to EUR 2 million (-13)
- Order book at the end of the period was stable at EUR 5,096 million (5,103)
WÄRTSILÄ'S PROSPECTS FOR 2017
The overall demand for Wärtsilä’s services and solutions in 2017 is expected to be relatively unchanged from the previous year. Demand by business area is anticipated to be as follows:
Wärtsilä’s current order book for 2017 deliveries is EUR 2,744 million (2,681), which mainly comprises Marine Solutions’ and Energy Solutions’ deliveries. 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.
JAAKKO ESKOLA, PRESIDENT AND CEO
“Wärtsilä’s order intake development was clearly the highlight of the first quarter. Services’ order intake was boosted by growing interest in long-term service agreements, while customers in the energy markets continued to invest in new power generation, both in the emerging markets and industrialised countries. Orders received in the Marine Solutions business were also at a reasonable level, thanks to continued activity in the cruise and FSRU markets. Although vessel contracting has remained low, signs of improving sentiment indicate a gradual recovery in demand towards the latter part of the year.
The higher level of power plant deliveries supported both net sales development and our underlying performance in the first quarter. Looking ahead, we expect service activity to improve thanks to customers’ maintenance schedules and the increased demand for long-term agreements in both of our end markets. This, together with the stabilised pricing environment in Energy Solutions, provides a good basis for the second half of 2017.”
KEY FIGURES
MEUR | 1-3/2017 | 1-3/2016 | Change | 2016 |
Order intake | 1 413 | 1 271 | 11% | 4 927 |
Order book at the end of the period | 5 096 | 5 103 | 0% | 4 696 |
Net sales | 1 007 | 967 | 4% | 4 801 |
Operating result1 | 80 | 83 | -4% | 532 |
% of net sales | 7.9 | 8.6 | 11.1 | |
Comparable operating result | 86 | 84 | 2% | 583 |
% of net sales | 8.5 | 8.7 | 12.1 | |
Comparable adjusted EBITA | 94 | 93 | 1% | 618 |
% of net sales | 9.4 | 9.6 | 12.9 | |
Profit before taxes | 74 | 80 | 479 | |
Earnings/share, EUR | 0.28 | 0.30 | 1.79 | |
Cash flow from operating activities | 2 | -13 | 613 | |
Net interest-bearing debt at the end of the period | 260 | 639 | 150 | |
Gross capital expenditure | 9 | 11 | 146 | |
Gearing | 0.13 | 0.32 | 0.07 | |
1Items affecting comparability in the first quarter of 2017 included costs related to restructuring programmes of EUR 6 million (1). | ||||
ANALYST AND PRESS CONFERENCE
An analyst and press conference will be held today, Wednesday 26 April 2017, at 10.00 a.m. Finnish time (8.00 a.m. UK time), at the Wärtsilä headquarters in Helsinki, Finland. The combined web- and teleconference will be held in English and can be viewed at the following address: http://wcc.webeventservices.com/r.htm?e=1400874&s=1&k=8313E441822FC1CF85A246AAF2D74652. To participate in the teleconference please register at the following address: http://emea.directeventreg.com/registration/2005373. You will receive dial-in details by e-mail once you have registered. If problems occur, please press *0 for operator assistance. Please use *6 to mute your phone during the teleconference and the same code to unmute.
An on-demand version of the webcast will be available on the company website later the same day.
For further information, please contact:
Marco Wirén
Executive Vice President & CFO
Tel: +358 10 709 5640
marco.wiren@wartsila.com
Natalia Valtasaari
Director, Investor & Media Relations
Tel: +358 10 709 5637
natalia.valtasaari@wartsila.com
For press information, please contact:
Atte Palomäki
Group Vice President, Communications & Branding
Tel: +358 10 709 5599
atte.palomaki@wartsila.com
Wärtsilä in brief
Wärtsilä is a global leader in advanced technologies and complete lifecycle solutions for the marine and energy markets. By emphasising sustainable innovation and total efficiency, Wärtsilä maximises the environmental and economic performance of the vessels and power plants of its customers. In 2016, Wärtsilä's net sales totalled EUR 4.8 billion with approximately 18,000 employees. The company has operations in over 200 locations in more than 70 countries around the world. Wärtsilä is listed on Nasdaq Helsinki.
www.wartsila.com
