Wed 19 Oct 2011, 14:48 GMT

Wärtsilä expects sales to fall in 2011


Finnish firm publishes interim report for the first nine months of this year.



Finnish engine manufacturer Wärtsilä has today reported an operating result for the January-September 2011 period of EUR 324 million, down from EUR 328 million during the corresponding period last year.

Net sales during the first nine months of 2011 decreased by 4 percent to EUR 2,970 million, down from EUR 3,091 million in 2010. Earnings per share amounted to EUR 1.05, compared to 1.18 in the prior-year period.

The order intake increased by 9 percent to EUR 3,267 million between January and September, up from EUR 3,002 million last year.

Third Quarter 2011

Please find below a sumamry of the highlights for the third quarter.

- Order intake increased by 11% to EUR 1,118 million (1,004).

- Order intake in joint venture companies grew significantly, EUR 182 million (68).

- Net sales decreased 18% to EUR 851 million (1,039).

- Operating result EUR 94 million, or 11.0% of net sales (EUR 117 million and 11.2%).

- Earnings per share amounted to EUR 0.28 (0.41).

- Book-to-bill increased to 1.31 (0.97).

- Wärtsilä acquired Cedervall, a manufacturer of shaft seal and bearing systems for the marine industry.

Commenting on the results, Bjorn Rosengren, Wärtsilä President and CEO, said: "This is my first time presenting Wärtsilä's result and I am pleased as it was strong in many ways. Wärtsilä's resilience in terms of solid profitability and increasing order intake in all three businesses gives us good possibilities for the future. In addition to the active Offshore segment, order intake grew significantly in our Korean joint venture, which focuses on dual-fuel engines for LNG carriers. This emphasises our strong position in the gas engine markets. Power Plants received some landmark orders, in addition to good ordering activity globally. Mining sector customers, utilities and Independent Power Producers actively placed orders.

"The third quarter developed as expected in terms of net sales, which was on a lower level compared to the previous year. This development was mainly related to the timing of deliveries. While certain marine service markets are suffering from uncertainties in the global economy, the power plant service market is more stable. In the slightly longer term, we see good prospects arising for environmental services. Despite the increased uncertainties in the global economy during this quarter, our prospects for net sales and profitability for the year 2011 remain the same."

Wärtsilä said it expects net sales for 2011 to decline by 0-5 percent compared to last year and operational profitability (EBIT% before nonrecurring items) to be around 11 percent.


BIMCO ETS BARECON clause 2026 graphic. BIMCO adopts ETS clause for bareboat charters, delays biofuel provision  

BIMCO’s Documentary Committee has approved an emissions trading compliance clause while requesting further work on a biofuel charter provision.

SALEFORM 2025 standard form graphic. BIMCO and Norwegian Shipbrokers’ Association launch SALEFORM 2025 ship sale contract  

Updated agreement addresses banking changes, compliance requirements and environmental regulations affecting vessel transactions.

Everllence H2 test engine. Everllence develops hydrogen test bench for marine engines  

German engine maker upgrades Augsburg facility under HydroPoLEn project backed by federal maritime research funding.

CMA CGM Osmium vessel. CMA CGM names 13,000-teu methanol-fuelled containership in South Korea  

CMA CGM Osmium to operate on Asia–Mexico service as part of the carrier’s decarbonisation strategy.

NorthStandard logo. NorthStandard publishes biofuel guide as marine insurance claims emerge  

White paper addresses quality issues and compliance requirements as biofuel testing volumes surge twelvefold.

Clean Maritime Fuels Platform (CMFP) logo. Maritime fuel platform calls for EU shipping ETS revenues to fund clean fuel deployment  

Clean Maritime Fuels Platform urges earmarking of national emissions trading revenues for renewable fuel infrastructure.

Seatransport 73m SLV Lloyd’s Register grants approval for hybrid nuclear power design for amphibious vessels  

Classification society approves Seatransport’s concept integrating micro modular reactors with diesel-electric systems.

Everllence ME-LGIE engine. Everllence and Vale partner on ethanol-powered marine engine development  

Brazilian mining company to develop dual-fuel ethanol engines based on ME-LGI platform.

India flag. Emvolon highlights biomethanol as a solution to unlock India’s biogas potential  

Company says distributed biogas-to-biomethanol production could bridge rural feedstock with maritime fuel demand.

Grande Svezia vessel. Grimaldi's Grande Svezia makes inaugural Le Havre call with ammonia-ready design  

Second of 10 new-generation PCTCs features 5 MWh battery system and cold ironing capability.