Wartsila has released its interim report for January – September 2016.
THIRD QUARTER HIGHLIGHTS
- Order intake increased 5% to €1139 million (1086)?
- Net sales decreased 12% to €1079 million (1222)?
- Book-to-bill 1.06 (0.89)?
- Comparable operating result €123 million, or 11.4% of net sales (€160 million or 13.1%)?
- Earnings per share €0.43 (0.49)?
- Cash flow from operating activities €189 million (-5) ?
HIGHLIGHTS OF THE REVIEW PERIOD JANUARY – SEPTEMBER 2016
- Order intake increased 2% to €3604 million (3529)
- Net sales decreased 6% to €3242 million (3439)?
- Book-to-bill 1.11 (1.03)?
- Comparable operating result €330 million, or 10.2% of net sales (€397 million or 11.5%)?
- Earnings per share €0.92 (1.46)?
- Cash flow from operating activities €378 million (78)?
- Order book at the end of the period decreased 2% to €5024 million (5112)
?WÄRTSILÄ'S PROSPECTS FOR 2016
Wärtsilä revised its prospects on 12 October 2016. Wärtsilä now expects its net sales to decline by around 5% and its profitability (comparable operating result as a percent of net sales) to be around 12%. Previously Wärtsilä expected its net sales to grow by 0-5% and its profitability to be 12.5-13.0%.?
JAAKKO ESKOLA, PRESIDENT AND CEO
"The third quarter of 2016 developed largely in line with our expectations. As anticipated, the concentration of deliveries towards the end of the year resulted in lower sales, which burdened our operating result. We continue to focus on increasing efficiency and flexibility within our organisation.
Although service activity has stabilised at a high level, we remain confident in the positive long-term drivers. In the equipment markets, the demand for new vessels was weak, reflecting the challenges related to overcapacity and low earnings. Nevertheless, improved sentiment in the power generation markets has contributed to the growth in overall order intake. I am pleased to note that a solid project pipeline supports continued momentum in our Energy Solutions business.
Despite the growth in order intake, lower than anticipated power plant deliveries in the current year has caused us to adjust our guidance for 2016. We now expect a small decline in sales, and estimate profitability to be around 12%."
Read the article online at: https://www.worldcement.com/europe-cis/25102016/wartsila-releases-interim-report/