For the period of January-September 2017, Wärtsilä was able to increase its operating result and order intake year-on-year. The marine markets remain challenging, efficiency measures are hoped to compensate for low volumes.
In the third quarter the order intake increased 19% to 1[ds_preview],354 mill. € (1,139), net sales increased 9% to 1,178 mill. € (1,079). Book-to-bill reached 1.15 (1.06). The comparable operating result increased to 135 mill. € (123), which represents 11.4% of net sales (11.4). Cash flow from operating activities decreased to 150 mill. € (189).
In the period January-September 2017 the order intake increased 15% to 4,130 mill. € (3,604). Net sales increased 7% to 3,477 mill. € (3,242), book-to-bill reached 1.19 (1.11). The comparable operating result increased to 346 mill. € (330), which represents 10.0% of net sales (10.2). Cash flow from operating activities decreased to 154 mill. € (378). The order book at the end of the period amounted to 5,075 mill. € (5,024). EBITDA for the period was 373 mill. € (356).
Wärtsilä expects the overall development for 2017 to be relatively unchanged from the previous year. Expectations for Marine Solutions are solid. Despite good order intake growth, the marine market environment remains challenging, as the merchant, gas carrier, and offshore segments continue to suffer from overcapacity and slow trade growth. The company expects solid performance in the Services business unit with growth opportunities in selected regions and segments. Prospects for Energy Solutions are good, thanks to increasing electricity demand in the emerging markets and the global shift towards renewable energy sources, which will support the need for distributed, flexible, gas-fired power generation.
Wärtsilä‘s current order book for 2017 deliveries is 1,206 mill. € (1,346). Wärtsilä intends to continue to focus on improving efficiency, which is expected to partially offset lower volumes in the marine markets. The pricing environment in Energy Solutions‘ markets has stabilised, but the order book is still impacted by the competitive pressure seen in previous years. The good performance in Services is expected to continue.
Jaako Eskola, President and CEO, said: »Wärtsilä‘s performance in the third quarter was satisfactory. Although power plant deliveries continued to drive overall sales development, challenges in the offshore segment and low volumes from service projects resulted in lower than expected sales growth in the Services business. Profitability was supported by certain deliveries being brought forward from the fourth quarter to the third. These timetable changes also result in a more even distribution of deliveries between the quarters than in the previous year.«
He added: »A favourable contracting mix in the marine markets supported order intake growth in Marine Solutions, the highlight being a contract to supply the main engines and exhaust gas cleaning systems to Norwegian Cruise Line‘s four new generation cruise ships to be built by Fincantieri. The high level of activity in the cruise segment over the past few years has lengthened delivery times for both yards and equipment suppliers. Finally, the continued demand for long-term service agreements resulted in order intake growth also for Services.«
