Wärtsilä Interim Report

Marinelink.com
Thursday, July 18, 2013

Stable Development in the fist half of 2013
 

Second Quarter Highlights:


• Order intake decreased 11% to EUR 1,071 million (1,198)
• Net sales increased 5% to EUR 1,152 million (1,099)
• Book-to-bill 0.93 (1.09)
• Operating result EUR 111 million, or 9.6% of net sales (EUR 113 million or 10.3%)
• EBITA EUR 119 million, or 10.3% of net sales (EUR 123 million or 11.2%)
• Earnings per share EUR 0.39 (0.38)
• Cash flow from operating activities EUR 38 million (-183)

 

Highlights of the Review Period January-June 2013:


• Order intake increased 5% to EUR 2,424 million (2,308)
• Net sales decreased 3% to EUR 2,034 million (2,104)
• Book-to-bill 1.19 (1.10)
• Operating result EUR 181 million, or 8.9% of net sales (EUR 215 million or 10.2%)
• EBITA EUR 198 million, or 9.7% of net sales (EUR 232 million or 11.0%)
• Earnings per share EUR 0.76 (0.72)
• Cash flow from operating activities EUR 122 million (-154)
• Order book at the end of the period increased by 5% to EUR 4,763 million (4,515)

 

Bjorn Rosengren, President and CEO said:


"The second quarter development was reasonable considering the current economic situation, with net sales increasing by 5% and profitability at 9.6%. We continue to work towards reaching this year's growth and profitability targets. Marine markets are showing some signs of improvement, with the offshore and specialised vessel segments continuing to be active. Furthermore, competitive new building prices and the increased fuel efficiency of modern vessels are attracting investments in the merchant segment. Overall order intake levels were lower than in the previous year, especially in Power Plants where we are experiencing delays in customer decision-making. We have seen some recovery in the service markets, which was reflected in the Services' net sales increase of 4%. Supported by our solid order book and the stable Services business, our prospects for 2013 remain unchanged."

 

Market Outlook:

The general macroeconomic uncertainty and the slow global growth projections are expected to continue to impact the global power generation markets. It is expected that the overall market for natural gas and liquid fuel based power generation in 2013 will be similar to that of 2012. In 2013, ordering activity is expected to remain 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 CO2 neutral generation and the ramp down of older, mainly coal-based generation.
 
Our outlook for the shipping and shipbuilding market in 2013 is cautious, although market conditions are expected to be better than in 2012. Despite the continued activity in orders, financing and overcapacity related issues are still visible in the traditional merchant markets. The orders placed in these markets focus more on fuel-efficient design and technology. Current emission regulations create interesting opportunities in environmental solutions. The contracting mix is expected to be largely in line with that seen in 2012, favouring contracting in offshore and specialised vessel segments. The outlook for gas demand remains healthy and the attractiveness of LNG as a fuel is supported by its low carbon intensity, global trade, and pricing.
 
The overall service market outlook remains stable. A continued increase in the medium-speed engine and propulsion installed base helps to balance the market environment in regions such as Europe, where the market is expected to remain challenging - especially on the marine side. The outlook for offshore services remains positive. Interesting opportunities can be seen in long term service agreements for gas powered vessels. Demand for services in the power segment continues to be good. The outlook for the Middle East and Asia remains slightly more positive, supported by interest in power plant related service projects. The outlook is also good in the Americas, where there is a mix of marine and power plant customers.

Wärtsilä's Prospects for 2013 Unchanged:

Wärtsilä expects its net sales for 2013 to grow by 0-10% and its operational profitability (EBIT% before non-recurring items) to be around 11%.
 

 

Maritime Reporter September 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Henderson, Hanes & Associates Opens Doors in Miami

Ocean Engineering/ Naval Architecture Firm Brings Innovation to the Mega Yacht Community The Miami-based ocean engineering and naval architecture firm of Henderson & Associates, Inc.

DOF Installer Sells Offshore Vessel

DOF Subsea AS subsidiary, DOF Installer ASA, reported the sale of one of its three sister ships, an anchor handling tug supply (AHTS) vessel, to an international buyer.

Scanjet Secures 30-ship Tank Management Order

Scanjet Group has followed up its Tank Management order from Stolt-Nielsen with a series of contracts for its ITAMA Intelligent Tank Management concept including Tankcleaning,

Marine Propulsion

Livorsi Launches New Throttle Lineup

Livorsi Marine introduced the all new Platinum Series throttles, which they say are designed to be more ergonomically comfortable to the operator while being lighter

MAN Propulsion Packages for New Trawler Series

Orders for five fresh-fish trawlers feature two different ship designs and MAN 6L27/38 engines and aft-ship equipment Icelandic owners, HB Grandi, Vinnslustodin hf.

Volvo Penta's New Keel Cooling Option

Volvo Penta is offering factory-built keel-cooled engines for the entire line of marine commercial inboard and sterndrive D4 3.7-liter and D6 5.5-liter engines.

Finance

DryShips: Public Offering of Its Senior Secured Notes

DryShips Inc. announced today that it intends to offer senior secured notes due 2017 (the “Notes”) pursuant to its effective shelf registration statement. The Company

DOF Installer Sells Offshore Vessel

DOF Subsea AS subsidiary, DOF Installer ASA, reported the sale of one of its three sister ships, an anchor handling tug supply (AHTS) vessel, to an international buyer.

Port City Plans for New Cargo Taxes Angers Kenya Govt, Shippers

Proposals by a local authority to impose new taxes on cargo at Kenya's main port has drawn opposition from the government and shippers, saying it will hike import

Marine Power

Livorsi Launches New Throttle Lineup

Livorsi Marine introduced the all new Platinum Series throttles, which they say are designed to be more ergonomically comfortable to the operator while being lighter

MAN Propulsion Packages for New Trawler Series

Orders for five fresh-fish trawlers feature two different ship designs and MAN 6L27/38 engines and aft-ship equipment Icelandic owners, HB Grandi, Vinnslustodin hf.

General Dynamics Bags $ 50 mi Submarine Contracts

General Dynamics Advanced Information Systems, a business unit of General Dynamics was awarded two contract modifications totaling $50 million to continue supporting

News

Livorsi Launches New Throttle Lineup

Livorsi Marine introduced the all new Platinum Series throttles, which they say are designed to be more ergonomically comfortable to the operator while being lighter

Henderson, Hanes & Associates Opens Doors in Miami

Ocean Engineering/ Naval Architecture Firm Brings Innovation to the Mega Yacht Community The Miami-based ocean engineering and naval architecture firm of Henderson & Associates, Inc.

Austal Launches Trenton (JHSV 5)

Second Joint High Speed Vessel to be launched at Austal in 2014 On September 30, 2014, Austal USA successfully completed the launch process of Trenton (JHSV

 
 
Maritime Careers / Shipboard Positions Naval Architecture Navigation Pipelines Pod Propulsion Salvage Ship Electronics Ship Repair Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1669 sec (6 req/sec)