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2014-04-24

Wärtsilä Oyj Abp: WÄRTSILÄ INTERIM REPORT JANUARY-MARCH 2014

Wärtsilä Corporation INTERIM REPORT 24 April 2014 at 8.30 a.m. local time

WÄRTSILÄ INTERIM REPORT JANUARY-MARCH 2014HEALTHY DEVELOPMENT IN SHIP POWER AND SERVICES OFFSETTING CHALLENGES IN POWER GENERATION MARKETS This release is a summary of Wärtsilä's Interim Report January-March 2014. The
complete report is attached to this release as a pdf-file. It is also
available athttp://www.wartsilareports.com/en-US/2014/q1/frontpage/and on the
company website atwww.wartsila.com.
HIGHLIGHTS OF THE REVIEW PERIOD JANUARY-MARCH 2014

- Order intake decreased 16% to EUR 1,142 million (1,352)
- Net sales increased 15% to EUR 1,012 million (882)
- Book-to-bill 1.13 (1.53)
- Operating result before non-recurring items EUR 90 million, or 8.9% of net
sales (EUR 70 million or 8.0%)
- Earnings per share 0.31 euro (0.37)
- Cash flow from operating activities EUR 111 million (84)
- Order book at the end of the period decreased 10% to EUR 4,505 million
(4,998)

BJÖRN ROSENGREN, PRESIDENT AND CEO

"In line with our expectations, first quarter net sales developed well with
profitability at 8.9%. Favourable development was also seen in the operating
cash flow. The power plant markets remain challenging with customers
continuing to delay decision-making due to global economic uncertainty and
emerging market currency fluctuations. However, activity in the marine market
was at a healthy level and Ship Power performed well, which partly offset the
current challenges within the power generation markets. Several orders were
received for offshore support vessels and there was active ordering of
dual-fuel solutions and gas handling systems for the merchant fleet. The
demand for services was stable within both of our end markets.

While the market situation continues to be volatile, we remain focused on
improving efficiency and our competitive position. The restructuring measures
announced in January have proceeded according to plan and are contributing to
the efficiency improvement. Based on these measures, the current order book
and a stable service market our prospects for 2014 remain unchanged."

WÄRTSILÄ'S PROSPECTS FOR 2014 UNCHANGED

Wärtsilä expects its net sales for 2014 to grow by 0-10% and its operational
profitability (EBIT% before non-recurring items) to be around 11%.

KEY FIGURES------------------------------------------------------------------------------------
|MEUR 1-3/2014 1-3/2013 Change 2013 |
|Order intake 1 142 1 352 -16% 4 872 |
|Order book at the end of the period 4 505 4 998 -10% 4 426 |
|Net sales 1 012 882 15% 4 654 |
|Operating result (EBIT)1 90 70 28% 520 |
|% of net sales 8.9 8.0 11.2 |
|Profit before taxes2 81 96 507 |
|Earnings/share, EUR2 0.31 0.37 1.98 |
|Cash flow from operating activities 111 84 578 |
|Net interest-bearing debt at the end of the period 390 668 276 |
|Gross capital expenditure 22 25 134 |
|Gearing 0.22 0.42 0.15 |
|1EBIT is shown excluding non-recurring items of EUR 6 million (1) during the |
|review period. |
|2The comparison figures include the sale of Wärtsilä's shares in Sato Oyj. |
------------------------------------------------------------------------------------

MARKET OUTLOOK
Power generation markets closely follow global macro-economic development. Uncertainty in the macro economy, combined with slow global growth projections, has lead to two consecutive years of decline in the power generation markets. Although customers are still delaying their decision-making, the forecasted GDP growth in 2014 is expected to result in a slightly improved overall market for liquid and gas fuelled power generation. Ordering activity remains focused on the emerging markets, which continue to invest in new power generation capacity. In the OECD countries, there is still pent-up power sector demand, mainly driven by CO2neutral generation and the ramp down of older, mainly coal-based generation.

The main drivers supporting activity in the shipping and offshore sectors are
in place. World seaborne trade and the world economy are showing signs of
improvement, which benefits the merchant shipping market. In the offshore
segment, the current oil price level is supportive of investments.
Furthermore, the strong drilling rig order book supports the ordering of
offshore support vessels and there is continued demand for production units.
The importance of fuel efficiency and the regulatory environment are clearly
visible, and the interest in gas as a fuel is increasing. Financing has eased
with more options and better terms available. Overall contracting is expected
to be in line with that seen in 2013, keeping in mind the prevailing
overcapacity and the market's limited capacity to absorb new tonnage.
Offshore activity is anticipated to be stable and the shipping markets to
remain healthy, although a slight decline in traditional merchant vessel
orders may be seen. The gas carrier market is expected to continue to be
active, particularly in the LPG vessel segment.

The overall service market outlook remains stable. An increase in the
installed base partly balances the slower service demand for older
installations and the continued focus of merchant marine customers on
reducing operating expenses. The outlook for services to offshore and gas
fuelled vessels remains positive. Demand for services in the power plant
segment continues to be good. From a regional perspective, the outlook for
the Middle East and Asia is slightly more positive, supported by interest in
power plant related services. The outlook is also good in the Americas and
Africa.

ANALYST AND PRESS CONFERENCE AT 10.00 A.M. LOCAL TIME

An analyst and press conference will be held on Thursday 24 April 2014 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=777667&s=1&k=1476255F094B6B5D65E....

To participate in the teleconference please register at the following
address:http://emea.directeventreg.com/registration/23538436. 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 Relations
Tel: +358 40 187 7809
natalia.valtasaari@wartsila.com
For press information, please contact:
Atte Palomäki

Executive Vice President, Communications&Branding
Tel: +358 10 709 5599
atte.palomaki@wartsila.com

Wärtsilä in brief

Wärtsilä is a global leader in complete lifecycle power solutions for the
marine and energy markets. By emphasising technological innovation and total
efficiency, Wärtsilä maximizes the environmental and economic performance of
the vessels and power plants of its customers. In 2013, Wärtsilä's net sales
totalled EUR 4.7 billion with approximately 18,700 employees. The company has
operations in more than 200 locations in nearly 70 countries around the
world. Wärtsilä is listed on the NASDAQ OMX Helsinki, Finland.
www.wartsila.com

Interim Report January - March 2014
http://hugin.info/131481/R/1779499/608119.pdf

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This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Wärtsilä Oyj Abp via Globenewswire

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