WÄRTSILÄ’S FINANCIAL STATEMENTS BULLETIN JANUARY-DECEMBER 2012
Wärtsilä Corporation FINANCIAL STATEMENTS RELEASE 25 January 2013 at 8.30 local time
NET SALES BACK TO GROWTH WITH STABLE PROFITABILITY
FOURTH QUARTER HIGHLIGHTS
-Order intake increased 9% to EUR 1, 357 million (1, 250)
-Net sales increased 24% to EUR 1, 533 million (1, 238)
-Book-to-bill 0.89 (1.01)
-Operating result (EBIT) EUR 186 million or 12.2% of net sales (EUR 145 million or 11.7%)
-EBITA EUR 196 million or 12.8% of net sales (EUR 149 million or 12.1%)
-Earnings per share amounted to EUR 0.62 (0.45)
-Cash flow from operating activities EUR 187 million (-71)
HIGHLIGHTS OF THE REVIEW PERION JANUARY-DECEMBER 2012
-Order intake increased 9% to EUR 4, 940 million (4, 516)
-Net sales increased 12% to EUR 4, 725 million (4, 209)
-Book-to-bill 1.05 (1.07)
-Operating result (EBIT) EUR 515 million or 10.9% of net sales (EUR 469 million or 11.1%)
-EBITA EUR 550 million or 11.6% of net sales (EUR 485 million or 11.5%)
-At the end of the period the order book increased 12% to EUR 4, 492 million (4, 007)
-Earnings per share amounted to 1.72 euro (1.44)
-Cash flow from operating activities EUR 153 million (232)
-Dividend proposal 1.00 euro/share
BJÖRN ROSENGREN, PRESIDENT AND CEO:
“I am pleased with our result for the year 2012, which was a year marked by difficult conditions in the global economy. Supported by a very strong fourth quarter, Wärtsilä’s full year net sales grew by 12% with profitability at 10.9%. The order intake grew by 9%, with strong development in Ship Power orders, especially in the offshore markets.
During 2012, we closed our largest ever acquisition with the purchase of Hamworthy. This supports our growth strategy in the marine gas, offshore and environmental solutions markets. Interest in marine gas solutions continued to be strong and the orders received demonstrate our leading position in the dual-fuel markets. As regards environmental solutions, market activity showed an upward trend. In the growing offshore markets, our position is good, not least in Brazil where we secured several important orders. Power Plants received two of their largest orders ever, and Wärtsilä is today recognised as a serious contender in the market for power plants above 500 MWs of capacity. I am also very pleased that the Services net sales have returned to growth and that important long-term service contracts are being secured in tough market conditions.
Looking at 2013, the economic situation continues to be uncertain, however our outlook for the markets remains stable. Supported by the solid order book, we see some growth in net sales next year and believe we can maintain our profitability on approximately the same level as in 2012.”
PROSPECTS FOR 2013
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%.
|Order intake||1 357||1 250||9%||4 940||4 516||9%|
|Order book at the end of the period||4 492||4 007||12%|
|Net sales||1 533||1 238||24%||4 725||4 209||12%|
|Operating result (EBITA)1||196||149||32%||550||485||13%|
|% of net sales||12.8%||12.1%||11.6%||11.5%|
|Operating result (EBIT)2||186||145||28%||515||469||10%|
|% of net sales||12.2%||11.7%||10.9%||11.1%|
|Profit before taxes||161||131||452||429|
|Cash flow from operating activities||187||-71||153||232|
|Net interest-bearing debt at the end of the period||567||58|
|Gross capital expenditure||513||187|
|1||EBITA is shown excluding non-recurring items of EUR 34 million (24) and intangible asset amortisation related to acquisitions of EUR 35 million (16) during the review period January-December 2012. During the fourth quarter, non-recurring items amounted to EUR 17 million (7) and intangible asset amortisation related to acquisitions to EUR 10 million (4).|
|2||EBIT is shown excluding non-recurring items.|
The general economic uncertainty and the slow global growth projections are expected to continue to impact 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 centered 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 slightly better than in 2012. The contracting outlook remains challenging for certain ship types, such as bulk carriers, due to the remaining overcapacity. Overall, the contracting mix is expected to be in line with that seen in 2012, favouring offshore and specialised vessel segments. Interesting opportunities can be seen in environmental solutions and fuel efficient designs.
The overall service market outlook remains stable. The outlook for the Middle East and Asia continues to be slightly more positive, while Southern Europe is likely to present more challenging conditions in line with overall economic development. An increase in the installed power plants base, compared to the marine sector, provides a better outlook for services to the power segment. The outlook for services to the marine sector remains, however, stable and is supported by the continued positive outlook for the offshore sector.
BOARD OF DIRECTORS’ DIVIDEND PROPOSAL
The Board of Directors proposes that a dividend of 1.00 euro per share be paid for the financial year 2012. The parent company’s distributable funds total 1, 049, 791, 970.15 euro, which includes 252, 563, 755.88 euro in net profit for the year. There are 197, 241, 130 shares with dividend rights. The dividend will be paid to shareholders who are registered in the list of shareholders maintained by Euroclear Finland Ltd on the record date, which is 12 March 2013. The dividend payment date proposed by the Board is 19 March 2013. The Annual Report 2012, including the financial review and the review by the Board of Directors, will be available on the company website www.wartsila.com and at www.wartsilareports.com during week 6.
Wärtsilä Corporation follows the disclosure procedure enabled by Standard 5.2b published by the Finnish Financial Supervision Authority. This stock exchange release is a summary of Wärtsilä Corporation’s Financial Statements Bulletin January-December 2012. The complete report is attached to this release in pdf format. The Financial Statements Bulletin January-December 2012 has been published for the first time also in a web based report system at www.wartsilareports.com. From now on the latest reports can always be found in this system. The Financial Statements Bulletin is also available on Wärtsilä’s website at www.wartsila.com/investors.
ANALYST AND PRESS CONFERENCE
An analyst and press conference will be held on Friday 25 January 2012, at 10.00 a.m. Finnish time (8.00 a.m. UK time), at the Wärtsilä headquarters in Helsinki, Finland. The combined web- and teleconference will be held in English and can be viewed on the internet at the following address: http://wcc.webeventservices.
To participate in the teleconference please register at the following address; http://emea.directeventreg.
An on-demand version of the webcast will be available on the company website later the same day.
For further information, please contact:
For press information, please contact:
Wärtsilä in brief Wärtsilä is a global leader in complete lifecycle power solutions for the marine and energy markets. By emphasising technological innovation and total efficiency, Wärtsilä maximises the environmental and economic performance of the vessels and power plants of its customers. In 2012, Wärtsilä’s net sales totalled EUR 4.7 billion with approximately 18, 900 employees. The company has operations in nearly 170 locations in 70 countries around the world. Wärtsilä is listed on the NASDAQ OMX Helsinki, Finland.