This release is a summary of
IMPROVED PROFITABILITY, STRONG CASH FLOW AND GOOD DEVELOPMENT IN SERVICES
Highlights from July-
- Order intake increased by 11% to
EUR 1,787 million (1,616), of which organic growth was 18% -
Service order intake increased by 15% to
EUR 842 million (732) -
Net sales was stable at
EUR 1,452 million (1,433), of which organic growth was 7% - Book-to-bill amounted to 1.23 (1.13)
-
Comparable operating result increased by 53% to
EUR 125 million (82), which represents 8.6% of net sales (5.7). -
Operating result increased to
EUR 117 million (10), which represents 8.0% of net sales (0.7). -
Basic earnings per share increased to
0.14 euro (0.00) -
Cash flow from operating activities increased to
EUR 213 million (100)
Highlights from January-
- Order intake increased by 18% to
EUR 5,214 million (4,436), of which organic growth was 22% -
Service order intake increased by 16% to
EUR 2,644 million (2,275) -
Order book at the end of the period increased by 6% to
EUR 6,594 million (6,229) -
Net sales increased by 7% to
EUR 4,371 million (4,072), of which organic growth was 11% - Book-to-bill amounted to 1.19 (1.09)
-
Comparable operating result increased by 38% to
EUR 320 million (232), which represents 7.3% of net sales (5.7) -
Operating result increased by
EUR 337 million toEUR 274 million (-62), which represents 6.3% of net sales (-1.5) -
Basic earnings per share increased to
0.28 euro (-0.16) -
Cash flow from operating activities increased to
EUR 432 million (-113)
WÄRTSILÄ'S PROSPECTS
Marine
Energy
HÅKAN AGNEVALL, PRESIDENT & CEO: IMPROVED PERFORMANCE IN MANY AREAS
"The market sentiment remained fairly positive for our businesses during the third quarter of 2023 and we further improved our performance in many areas. Growth in services continued to support our profitability improvement.
In the energy market, the energy and climate policies around the world continue to evolve towards decarbonisation targets, and the mid-term energy transition outlook remains strong. Due to the higher interest rates and gas price volatility uncertainty remains in the overall investment environment, delaying decision-making especially in the engine power plants business. On the other hand, constraints in global and energy-related supply chains have eased considerably, which has had a positive effect especially in battery energy storage. The energy service business continued to develop well. A good example is the ten-year Guaranteed Asset Performance agreement we signed with US utility
In the marine market, the sentiment remained positive for
In the third quarter, order intake grew organically at 18%, supported by good development both in equipment and services. In Energy segment, equipment order intake decreased with lower volumes in both thermal power plants and energy storage. In the power plants business, some orders have been moving forward. Net sales of the Group grew organically at 7% with solid growth in services and a decline in equipment. The comparable operating result increased by 53% to
We expect the demand environment for the coming 12 months to be similar to the comparison period in the Marine (including Marine Power and Marine Systems) business and better than the comparison period in the Energy business. We continue to make steady progress towards our profitability target. As earlier communicated, our profitability during this and the previous year has been burdened by cost inflation, particularly due to projects taken before the acceleration of cost inflation. We have now delivered these projects out of our orderbook. Furthermore, our energy storage business is now profitable (on a 12-month rolling basis) as a result of a successful turnaround. Although partially still at losses, the profitability of the businesses that earlier formed Voyage is also improving, and the turnaround is now on plan.
MEUR | 7-9/2023 | 7-9/2022 | Change | 1-9/2023 | 1-9/2022 | Change | 2022 |
Order intake | 1,787 | 1,616 | 11% | 5,214 | 4,436 | 18% | 6,074 |
of which services | 842 | 732 | 15% | 2,644 | 2,275 | 16% | 3,066 |
of which equipment | 946 | 884 | 7% | 2,570 | 2,161 | 19% | 3,008 |
Order book, end of period | 6,594 | 6,229 | 6% | 5,906 | |||
Net sales | 1,452 | 1,433 | 1% | 4,371 | 4,072 | 7% | 5,842 |
of which services | 762 | 664 | 15% | 2,305 | 1,991 | 16% | 2,775 |
of which equipment | 690 | 769 | -10% | 2,066 | 2,080 | -1% | 3,067 |
Book-to-bill | 1.23 | 1.13 | 1.19 | 1.09 | 1.04 | ||
Comparable adjusted EBITA* | 130 | 87 | 49% | 336 | 250 | 34% | 349 |
% of net sales | 8.9 | 6.1 | 7.7 | 6.1 | 6.0 | ||
Comparable operating result | 125 | 82 | 53% | 320 | 232 | 38% | 325 |
% of net sales | 8.6 | 5.7 | 7.3 | 5.7 | 5.6 | ||
Operating result | 117 | 10 | 1123% | 274 | -62 | 541% | -26 |
% of net sales | 8.0 | 0.7 | 6.3 | -1.5 | -0.4 | ||
Result before taxes | 107 | 7 | 1377% | 245 | -67 | 464% | -32 |
Basic earnings/share, EUR | 0.14 | 0.00 | 0.28 | -0.16 | -0.11 | ||
Cash flow from operating activities | 213 | 100 | 432 | -113 | -62 | ||
Net interest-bearing debt, end of period | 356 | 377 | 481 | ||||
Gearing | 0.17 | 0.18 | 0.23 | ||||
Solvency, % | 35.2 | 34.5 | 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 on the same day, Tuesday
If you only wish to view the stream, please register at: https://www.mediaserver.fi/live/wartsila
If you plan to view the stream and ask questions in the Q&A session, please register at: https://attendee.gotowebinar.com/register/2480103941980089941
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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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:
Executive Vice President, Communications and Marketing
Tel. +358 40 589 0223
saara.tahvanainen@wartsila.com
https://news.cision.com/wartsila-corporation/r/wartsila-s-interim-report-january-september-2023,c3866118
https://mb.cision.com/Main/15003/3866118/2397221.pdf
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