WÄRTSILÄ CORPORATION INTERIM REPORT JANUARY – JUNE 2009
22 July 2009
STRONG SECOND QUARTER – MARKET CHALLENGES CONTINUE
SECOND QUARTER HIGHLIGHTS
- Net sales grew 22% to EUR 1,333 million (1,092)
- Operating result before nonrecurring restructuring items grew to EUR 155 million (124), 11.7% of net sales (11.4). Including the restructuring items, operating result totalled EUR 149 million, 11.2 % of net sales.
- Earnings per share amounted to 1.01 (0.96)
- Order intake fell 45% to EUR 785 million (1,432)
HIGHLIGHTS OF THE REVIEW PERIOD JANUARY-JUNE 2009
- Net sales EUR 2,574 million (1,942), growth 33%
- Operating result before nonrecurring restructuring items grew to EUR 286 million (206), 11.1% of net sales (10.6). Including the restructuring items, operating result totalled EUR 280 million, 10.9% of net sales.
- Earnings per share amounted to 1.90 (1.45)
- Cash flow from operating activities EUR -72 million (207)
- Order intake EUR 1,743 million (3,368 million), a decrease of 48%
- Order book total EUR 5,829 million (7,479), a decrease of 22%
- Materialised order cancellations totalled EUR 154 million
“The first half of 2009 was strong for Wärtsilä. Net sales grew by 33% to EUR 2,574 million and operating result by 39% to EUR 286 million, EBIT margin being 11.1%. At the same time, the global economic downturn was reflected in the order intake, which fell 48%. As expected the Ship Power markets continued to be challenging, and further cancellations and postponements were seen in the market. For Wärtsilä cancellations of EUR 154 million materialised during the first half of 2009 and Wärtsilä sees a potential cancellation risk of approximately EUR 800 million. Wärtsilä Ship Power has taken appropriate measures to minimize the effects of the down cycle by adjusting its operations to current demand. In the Power Plants market activity remained good in all areas and Services continued its stable development. Despite the risk of cancellations and the uncertainty in the market, Wärtsilä’s prospects for 2009 remain unchanged.”
WÄRTSILÄ’S PROSPECTS FOR 2009 REITERATED Despite the risk of cancellations and the nonrecurring restructuring items booked in the second quarter, the substantial order book at the end of the year should support a 10-20 percent growth in net sales for 2009, which would maintain the profitability at last year’s good level.
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 maximises the environmental and economic performance of the vessels and power plants of its customers. In 2008, Wärtsilä’s net sales totalled EUR 4.6 billion with 19,000 employees. The company has operations in 160 locations in 70 countries around the world. Wärtsilä is listed on the NASDAQ OMX Helsinki, Finland.
Wärtsilä Corporation, press release