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 January 27, 2016 - 1:30 AM EST
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Wärtsilä Corporation FINANCIAL STATEMENTS BULLETIN 27 January 2016 at 8.30 local time



This release is a summary of Wärtsilä's financial statements bulletin 2015. The complete report is attached to this release as a pdf-file. It is also available at and on the company website at

- Order intake decreased 8% to EUR 1,403 million (1,522)
- Net sales increased 3% to EUR 1,590 million (1,549)
- Book-to-bill 0.88 (0.98)
- EBITA EUR 224 million, or 14.1% of net sales (EUR 202 million or 13.1%)
- Operating result before non-recurring items EUR 215 million, or 13.5% of net sales (EUR 196 million or 12.7%)
- Earnings per share 0.79 euro (0.60)
- Cash flow from operating activities EUR 176 million (212)

- Order intake decreased 3% to EUR 4,932 million (5,084)
- Net sales increased 5% to EUR 5,029 million (4,779)
- Book-to-bill 0.98 (1.06)
- EBITA EUR 643 million, or 12.8% of net sales (EUR 594 million or 12.4%)
- Operating result before non-recurring items EUR 612 million, or 12.2% of net sales (EUR 569 million or 11.9%)
- Earnings per share 2.25 euro (1.76)
- Cash flow from operating activities EUR 255 million (452)
- Order book at the end of the period increased 8% to EUR 4,882 million (4,530)
- Dividend proposal 1.20 euro per share

Wärtsilä expects its net sales for 2016 to grow by 0-5% and its operational profitability (EBIT% before non-recurring items) to be 12.5-13.0%.

"A solid fourth quarter and continued growth in service volumes supported us in reaching our targets for the year 2015. Net sales grew by 5% and profitability reached 12.2%. Furthermore, the quarterly order intake in the equipment businesses improved sequentially towards year end. Given the challenging operating environment we can be pleased with our performance.

Services' development was clearly the highlight of the year, with double digit growth in both orders and sales. Our success was driven by a focused sales approach and an enhanced value proposition, as well as by the increasing willingness of our customers to invest in performance optimising services. We will work actively to ensure the continued development of our offering in 2016. Another key focus area will be cash flow development, which this year was negatively affected by the timing of power plant deliveries.

Looking into 2016, we expect the market situation to remain similar to that seen during the previous year. The favourable development of service activity is expected to continue, while conditions in energy markets will remain challenging and the demand for new vessels limited due to overcapacity and low oil prices. Despite our cautious market outlook, we remain well positioned to benefit from the trends of increasing demand for efficiency and changing energy needs. Digitalisation will increasingly drive our business, as we utilise data analytics to further optimise our customers' operations, and our own internal processes and performance. Based on our solid order book and project pipeline, a growing Services business and our focus on continuous improvement, we expect to see some growth in sales and operating margins in the coming year."


MEUR 10-12/2015 10-12/2014 Change 1-12/2015 1-12/2014 Change
Order intake 1 403 1 522 -8% 4 932 5 084 -3%
Order book at the end of the period     4 882 4 530 8%
Net sales 1 590 1 549 3% 5 029 4 779 5%
Operating result (EBITA)1 224 202 11% 643 594 8%
% of net sales 14.1 13.1   12.8 12.4  
Operating result (EBIT)2 215 196 10% 612 569 8%
% of net sales 13.5 12.7   12.2 11.9  
Profit before taxes 199 157   553 494  
Earnings/share, EUR 0.79 0.60   2.25 1.76  
Cash flow from operating activities 176 212   255 452  
Net interest-bearing debt at the end of the period     372 94  
Gross capital expenditure     346 94  
Gearing       0.17 0.05  
1 EBITA is shown excluding non-recurring items and purchase price allocation amortisation. Wärtsilä recognised non-recurring items amounting to EUR 13 million (30) in the fourth quarter, of which EUR 11 million related to the restructuring programme announced in July and EUR 3 million to acquisitions and other costs. Purchase price allocation amortisation amounted to EUR 9 million (6). During the review period January-December 2015, non-recurring items amounted to EUR 25 million (47), of which EUR 19 million related to the restructuring programme and EUR 6 million to acquisitions and other costs. Purchase price allocation amortisation amounted to EUR 32 million (26).
2 EBIT is shown excluding non-recurring items.

The market for liquid and gas fuelled power generation is expected to remain challenging as economic uncertainty continues. Despite slower economic growth in the emerging markets, growth in electricity demand and the availability of international funding for infrastructure projects will continue to support power plant investments. In the OECD countries, low economic growth continues to limit demand for new power plants, and in Europe the unfinished new electricity market design is delaying investments. Low gas prices and positive developments in electricity market designs are driving the demand in North America. The megatrend towards distributed, flexible, gas-fired power generation continues to gain ground globally. The increasing deployment of intermittent renewable power, such as wind and solar, requires investments in flexible solutions to balance the power systems. Electricity markets are being developed to reward the necessary flexibility, thereby enabling new profitable investments. Wärtsilä's systematic market development work in these markets will continue to bring forward the benefits of Smart Power Generation.

The outlook for the shipping and shipbuilding markets remains challenging, with oversupply limiting demand for newbuild vessels and low oil prices continuing to impact investments in offshore exploration and development. Gas carrier contracting is expected to remain at a normalised level due to the continued demand for LPG in Asia. The outlook for the cruise and ferry segment remains positive thanks to economic recovery in Europe and the United States, as well as increased interest for cruises in Asia. The importance of fuel efficiency and environmental regulations are clearly visible. Increased environmental awareness and the regulatory environment is driving interest in gas as a marine fuel in the broader marine markets.

The service market outlook is positive with growth opportunities in selected regions and segments. An increase in the installed base of medium-speed engines and propulsion equipment, as well as the shift to gas based technology, offsets the slower service demand for older installations and uncertainty regarding short-term demand development in the merchant marine segment. The favourable impact of low oil prices on operating costs is expected to continue to support the demand for service work on installations operating on oil based fuels. In the offshore segment, the growth in the installed base during recent years is expected to partially compensate for the challenging outlook in certain regions. The service outlook for gas fuelled vessels remains favourable. Service demand in the power plant segment continues to be good with an especially positive outlook in the Middle East and Africa. Customers in both the marine and power plant markets continue to show healthy interest in long-term service agreements.

The Board of Directors proposes that a dividend of 1.20 euro per share be paid for the financial year 2015. The parent company's distributable funds total 1,052,581,243.14 euro, which includes 276,747,007.02 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 7 March 2016. The dividend payment date proposed by the Board is 14 March 2016. The Annual Report 2015, including the financial review and the review by the Board of Directors, will be available on the company website and at during week 6.

An analyst and press conference will be held today, Wednesday 27 January 2016, 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 at the following address:

To participate in the teleconference please register at the following address: You will receive dial-in details by e-mail once you have registered. If problems occur, please press *0 for operator assistance. Please use *6 to mute your phone during the teleconference and the same code to unmute.

An on-demand version of the webcast will be available on the company website later the same day.

For further information, please contact:

Marco Wirén
Executive Vice President & CFO
Tel: +358 10 709 5640

Natalia Valtasaari
Director, Investor & Media Relations
Tel: +358 40 187 7809

For press information, please contact:

Atte Palomäki
Group Vice President, Communications & Branding
Tel: +358 10 709 5599

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 maximizes the environmental and economic performance of the vessels and power plants of its customers. In 2015, Wärtsilä's net sales totalled EUR 5.0 billion with approximately 18,900 employees. The company has operations in more than 200 locations in nearly 70 countries around the world. Wärtsilä is listed on the Nasdaq Helsinki.

This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Wärtsilä Oyj Abp via Globenewswire


Source: Thomson Reuters ONE (January 27, 2016 - 1:30 AM EST)

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