Wärtsilä Corp. Interim Report
Ole Johansson, President and CEO said, "The third quarter was strong for Wärtsilä at all levels, as net sales developed according to plan, profitability was strong, and cash flow from operating activities was at an all time high level. As a result of this positive development we now expect our profitability to exceed 10% for the year 2010. The improvements in Wärtsilä's market environment that started in the second quarter have continued, and we expect the order intake for the full year to clearly exceed last year's levels. Despite this, structural changes in the market, intense competition and price pressure support our restructuring and efficiency improvement measures which will ensure our competitiveness also in the future."
Wärtsilä's prospects for 2010 improved
Based on the current order book and a stable service business we expect net sales to decline by approximately 15 percent in 2010 and our operational profitability (EBIT% before nonrecurring items) to be better than earlier expected and to exceed 10%.
Third quarter highlights
- Order intake EUR 1,004 million (725), +38%
- Net sales EUR 1,039 million (1,167), -11%
- Operating result EUR 117 million (133), 11.2% of net sales (11.4)
- Earnings per share amounted to 0.83 euro (0.87)
Highlights of the review period January-September 2010
- Order intake EUR 3,002 million (2,468), +22%
- At the end of the period the order book totalled EUR 4,243 million (5,351), -21%
- Net sales EUR 3,091 million (3,741), -17%
- Operating result EUR 328 million (419), 10.6% of net sales (11.2)
- Earnings per share amounted to 2.36 euro (2.82)
- All time high cash flow from operating activities EUR 491 million (142)
All numbers above are shown excluding nonrecurring items. Wärtsilä recognised EUR 2 million of nonrecurring items related to restructuring measures during the third quarter and a selling profit of EUR 32 million from the divestment of its Sampo Group holding. Wärtsilä recognised EUR 59 million of nonrecurring restructuring items during the review period January-September 2010.