This release is a summary of
PROFITABILITY IMPROVED, GOOD DEVELOPMENT IN SERVICES
HIGHLIGHTS FROM JANUARY-
- Order intake increased by 26% to
EUR 1,739 million (1,380), of which organic growth was 29% -
Service order intake increased by 21% to
EUR 889 million (732) -
Order book at the end of the period was stable at
EUR 6,153 million (6,107) -
Net sales increased by 19% to
EUR 1,465 million (1,231), of which organic growth was 20% - Book-to-bill amounted to 1.19 (1.12)
-
Comparable operating result increased by 34% to
EUR 88 million (65), which represents 6.0% of net sales (5.3) -
Operating result increased by
EUR 239 million toEUR 92 million (-147), which represents 6.3% of net sales (-11.9) -
Basic earnings per share increased to
0.09 euro (-0.24) -
Cash flow from operating activities increased to
EUR 145 million (-122)
WÄRTSILÄ'S PROSPECTS
Marine
Energy
HÅKAN AGNEVALL, PRESIDENT & CEO: PROFITABILITY IMPROVED
"Although facing continued uncertainties in the operating environment, we successfully delivered growth and higher profitability. The global economic headwinds continued despite some improvements, including the reopening of
In the energy market, the investment environment remains uncertain, especially for new power plants. Price pressure on fuel and raw material cost has eased during the beginning of the year, but rising interest rates have caused further uncertainty. On the other hand, investments in the energy transition have been at a high level, and supportive policies regarding battery energy storage and clean hydrogen has continued to develop during the first quarter of the year. Notably, we signed a contract to provide an energy storage system to the
In the marine market, economic headwinds continued to limit growth, as rising newbuild prices combined with limited shipyard capacity continued to hamper newbuild ordering activity. Nevertheless, the market sentiment remained positive for
Our order intake increased by 26% supported by good development both in services and equipment. Net sales increased by 19% with growth in
We continue to take actions to improve our profitability. Voyage was merged into Marine Power in the beginning of this year. After a strategic review, we have also decided to focus on end-to-end voyage optimisation and moving other parts of the Voyage business activities to the Portfolio Business. Additionally, we are planning to move Marine Electrical Systems, currently part of the Marine Systems business, to the Portfolio Business. These changes are expected to be completed during the second quarter of the year.
We expect the demand environment for the next 12 months to be similar to that of the comparison period, in both the Marine (including Marine Power and Marine Systems) and Energy businesses. Although our operating result margin is still clearly below our target, we are taking actions to improve our profitability step by step. As we have seen in the first quarter, we continue to grow our service business and deliver the part of our order backlog that has been significantly impacted by cost inflation. The turnaround of our energy storage business continues in the right direction and the decarbonisation transformation will have a positive impact on our business going forward."
MEUR | 1-3/2023 | 1-3/2022 | Change | 2022 |
Order intake | 1,739 | 1,380 | 26% | 6,074 |
of which services | 889 | 732 | 21% | 3,066 |
of which equipment | 850 | 648 | 31% | 3,008 |
Order book, end of period | 6,153 | 6,107 | 1% | 5,906 |
Net sales | 1,465 | 1,231 | 19% | 5,842 |
of which services | 736 | 631 | 17% | 2,775 |
of which equipment | 729 | 600 | 22% | 3,067 |
Book-to-bill | 1.19 | 1.12 | 1.04 | |
Comparable adjusted EBITA* | 93 | 72 | 29% | 349 |
% of net sales | 6.4 | 5.9 | 6.0 | |
Comparable operating result | 88 | 65 | 34% | 325 |
% of net sales | 6.0 | 5.3 | 5.6 | |
Operating result | 92 | -147 | 163% | -26 |
% of net sales | 6.3 | -11.9 | -0.4 | |
Result before taxes | 84 | -147 | 157% | -32 |
Basic earnings/share, EUR | 0.09 | -0.24 | -0.11 | |
Cash flow from operating activities | 145 | -122 | -62 | |
Net interest-bearing debt, end of period | 477 | 276 | 481 | |
Gearing | 0.24 | 0.14 | 0.23 | |
Solvency, % | 33.4 | 35.3 | 35.3 |
*Comparable adjusted EBITA excludes items affecting comparability and purchase price allocation amortisation.
ANALYST AND PRESS CONFERENCE
A virtual analyst and press conference will be held as a webinar today, Tuesday
If you only wish to view the stream, please register at: http://www.mediaserver.fi/live/wartsila.
If you plan to view the stream and ask questions in the Q&A session, please register at: https://register.gotowebinar.com/register/2530561625928697437.
Please register using only one of the links above, not both. Once you have registered, you will receive a confirmation email that includes specific joining instructions.
***
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To enter into the questions and answers queue, please use the raise your hand function in the webinar platform and unmute your microphone when the moderator announces your name. Please remember to lower your hand once your question has been answered.
For more information on joining and setting up your audio for Q&A, you may visit the official GoToWebinar attendee joining guide at: https://support.goto.com/webinar/how-to-join-attendees. Instructions on Q&A related functionalities can be found at: https://support.logmeininc.com/gotowebinar/help/raise-your-hand.
A recording of the webcast will be available on the company website as soon as possible after the event.
For further information, please contact:
Executive Vice President & CFO
Tel. +358 10 709 5444
arjen.berends@wartsila.com
Vice President, Investor Relations
Tel. +358 10 709 1461
hanna-maria.heikkinen@wartsila.com
For press information, please contact:
Vice President, Corporate Communications
Tel. +358 50 363 5577
saara.smura@wartsila.com
Sari Luhanka
Manager, Global Media Relations
Tel. +358 50 386 0353
sari.luhanka@wartsila.com
https://news.cision.com/wartsila-corporation/r/wartsila-s-interim-report-january-march-2023,c3757194
https://mb.cision.com/Main/15003/3757194/2007814.pdf
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