Wärtsilä Reports Healthy Ship Power Sector in Q1 2014
In its interim financial report January to March 2014 Wärtsilä notes healthy development in ship power and services offsetting challenges in power generation markets.
Highlights of 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 & 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%.