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Wärtsilä's Interim Report January-June 2016

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World Cement,

Wärtsilä's Interim Report January-June 2016.

Second quarter highlights

  • Order intake increased 3% to €1194 million
  • Net sales decreased 3% to €1196 million
  • Book-to-bill 1.00
  • Comparable operating result €122 million, or 10.2% of net sales
  • Earnings per share €0.19
  • Cash flow from operating activities €202 million

Highlights of the review period January-June 2016

  • Order intake increased 1% to €2465 million
  • Net sales decreased 2% to €2163 million
  • Book-to-bill 1.14
  • Comparable operating result €206 million, or 9.5% of net sales
  • Earnings per share €0.49
  • Cash flow from operating activities €189 million
  • Order book at the end of the period decreased 5% to €5083 million

Wärtsilä's prospects for 2016 unchanged?

Wärtsilä expects its net sales for 2016 to grow by 0-5% and its profitability (comparable operating result as a percent of net sales) to be 12.5 – 13.0%.?

Jaakko Eskola, President and CEO

"The development of the first half of 2016 was satisfactory, given the prevailing challenges in our operating environment. Net sales remained broadly in line with the previous year, while the lower level of power plant deliveries and tight competition in the energy markets burdened our operating result. Going forward, we expect equipment deliveries to be concentrated towards the end of the year. Order intake development was solid, largely thanks to the somewhat improved sentiment in the power generation industry, which supported growth in Energy Solutions' ordering activity. Marine Solutions' orders have also held up fairly well considering the low level of vessel contracting, benefitting from announced fleet renewal activity in the cruise and ferry markets. Services' net sales have grown at a slower pace; however, we expect improved activity levels to support a pick-up in volumes in the coming quarters. Based on the current trends in our end markets and the increased uncertainty in the global economy, our outlook for demand development remains cautious.?

Pursuing growth through innovative solutions is one of the key cornerstones of Wärtsilä's strategy, which is why I am pleased to highlight the acquisition of Eniram, a company specialised in energy management and data analytics solutions. Eniram complements our existing digital offering and enhances our expertise in data analytics, modelling, and performance optimisation. It is an important investment for our digital future. During the second quarter, we also announced the acquisition of American Hydro. This investment is aimed at strengthening our presence and competences in the industrial and hydro power service markets."

Adapted from press release by Joseph Green

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