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Wärtsilä Announces Financial Results

Posted on January 29, 2010

Wärtsilä announced fourth quarter and full year 2009 financial results with fourth quarter orders indicating signs of recovery in both power plant orders as well as offshore activity. The company reported that services continued to be strong.

Ole Johansson, president and CEO stated, "The year 2009 was very successful for Wärtsilä in many ways. Group net sales grew by 14%, coupled with an all time high operating profit. The demand for power plants continued on a healthy level and the services business maintained its volumes in spite of significant lay ups of vessels. The global recession of the marine market was reflected as low ordering activity and cancellations in the ship power business. While the standstill of new shipbuilding orders at large is expected to continue for another two years, first signs of recovery can be seen in some offshore and special vessel segments.

Wärtsilä's activity in all major segments of shipping is a valuable element of future competitiveness. The concentration of shipbuilding activity to Asia, particularly to China is expected to continue. This is the basis for the capacity adjustments within Wärtsilä ship power and industrial operations that were initiated during 2009 and early 2010. With power plant demand continuing at a healthy level, opportunities in services, operations and manufacturing adjusted to the changing global markets and with continued focus on innovation, Wärtsilä is well positioned for the year 2010 and beyond."

Johansson continued, "Due to the weakness of the shipbuilding sector we expect net sales to decline by 10 to 20% in 2010. As a result of a stable service business, good demand for power plants and proper adaptation of capacity, our operational profitability (EBIT% before nonrecurring items) should be between 9 and 10%, well within the upper end of our long-term target range."

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