Strong orderbook for Wärtsilä

Helsinki-based Wärtsilä Corporation has a strong order intake in the third quarter of this year, according to its Interim report covering January-September 2014. Order intake increased 21% to
EUR 1,309 million (1,086) in the third quarter, whereas net sales decreased 7% to EUR 1,117 million (1,199). Other financial highlights include:
• Book-to-bill 1.17 (0.91)
• Operating result before non-recurring items EUR 142 million, or 12.7% of net sales (EUR 148 million or 12.3%)
• Earnings per share EUR 0.43 (0.48)
• Cash flow from operating activities EUR 68 million (139)
 ”In the marine markets the recent activity in LNG and LPG carriers has supported the ordering of gas handling systems. The 24% increase in Ship Power’s order intake was further enhanced by good activity in the cruise markets. I am confident that the positive trend in order development will continue during the upcoming quarter. Third quarter net sales and profitability developed in line with our expectations. I am especially pleased that Services’ net sales grew by 9%, which shows that our focus on growth is paying off. Profitability reached 12.7% partly thanks to the ongoing efficiency program, which resulted in savings of EUR 10 million in the third quarter. Profitability has developed well thus far in 2014, reaching 11.5% for the period January-September, and consequently we raise our full year profitability guidance to 11.5-12.0%,” Björn Rosengren, President and CEO of Wärtsilä said. According to Wärtsilä, overcapacity continues to affect the demand for traditional merchant vessels. “Vessels are being scrapped at a younger age, which along with a more balanced fleet growth supports a gradual recovery in the freight market. In the offshore segment, the contracting of drilling units and certain support vessels is expected to continue to be at a lower level. The outlook for gas carriers remains positive, although the recent strong ordering volumes may affect activity in the short term.