Wärtsilä Corporation, Financial Statements Bulletin January-
This release is a summary of
2020 - a year characterised by COVID-19 related uncertainty
Highlights of October-
· Order intake decreased by 28% to
· Net sales decreased by 28% to
· Book-to-bill amounted to 0.92 (0.92)
· Comparable operating result decreased by 49% to
· Earnings per share decreased to
· Cash flow from operating activities decreased to
Highlights of January-
· Order intake decreased by 18% to
· Order book at the end of the period decreased by 14% to
· Net sales decreased by 11% to
· Book-to-bill amounted to 0.95 (1.03)
· Comparable operating result decreased by 40% to
· Earnings per share decreased to
· Cash flow from operating activities increased to
· Dividend proposal
"2020 proved to be an unprecedented year, with
Not surprisingly, the impact of the pandemic on our financial performance for the year was significant. Net sales decreased because of lower service volumes and disruptions to equipment deliveries. While fourth quarter profitability improved sequentially, the seasonal pick-up in service activity was, as anticipated, weaker than in previous years. The operating result and profitability for the full year came in well below that of 2019, the main reasons being a less favourable sales mix, under absorption of fixed costs, and COVID-19 driven cost inflation. To mitigate the financial effects of COVID-19, we have implemented temporary actions to create savings in the form of reduced discretionary spending, worktime reductions, and temporary layoffs. We also placed a significant focus on decreasing credit risk and improving working capital, particularly in the areas of inventory management and receivables collection. As a result, our operating cash flow reached record high levels.
Despite the disruptions to our operations, our commitment to R&D activities has remained unchanged. Last year saw the launch of many solutions aimed at delivering higher efficiency, greater reliability, and better environmental sustainability to enhance the business of our customers. I am also pleased with the progress we have made in future-proofing engine technology, in line with the global trend towards the decarbonisation of the energy and marine markets. During the year, we initiated full-scale testing of ammonia as a fuel in our 4-stroke combustion engines and announced our intention to develop the gas engine combustion process to enable them over time to burn 100% hydrogen fuel. In the energy markets, we have stepped up our efforts to support our customers in understanding and accelerating the energy transformation. An example of this is the launch of the
The demand environment is likely to remain challenging in the short term, with near-term demand similar to the levels seen in early 2020. However, vaccine developments have provided some relief to the markets. We expect to see this having a positive effect on our business during the course of 2021, as country level vaccination programmes are implemented on a global scale. Looking further ahead, I remain confident that our strategy, and the organisational changes we implemented last year, position us well to capture opportunities arising from decarbonisation efforts in both the marine and energy markets.
This being the last results to be published before my retirement, I would like to take the opportunity to thank all my colleagues throughout
Key figures
MEUR 10-12/ 10-12/ Change 1-12/20 1-12/2019 Change
2020 2019 20
Order intake 1,118 1,555 -28% 4,359 5,327 -18%
of which services 626 726 -14% 2,267 2,683 -16%
Order book, end of 5,057 5,878 -14%
period
Net sales 1,220 1,684 -28% 4,604 5,170 -11%
of which services 654 741 -12% 2,255 2,505 -10%
Book-to-bill 0.92 0.92 0.95 1.03
Operating result 90 164 -45% 234 362 -35%
% of net sales 7.4 9.7 5.1 7.0
Comparable operating 103 202 -49% 275 457 -40%
result
% of net sales 8.4 12.0 6.0 8.8
Comparable adjusted 111 213 -48% 308 498 -38%
EBITA*
% of net sales 9.1 12.6 6.7 9.6
Profit before taxes 78 153 -49% 191 315 -39%
Earnings/share,
Cash flow from 274 295 681 232
operating activities
Net interest-bearing 394 726
debt, end of period
Gross capital 117 122
expenditure
Gearing 0.18 0.30
Solvency, % 38.1 40.8
Personnel, end of 17,792 18,795 -5%
period
*Comparable adjusted
EBITA excludes items
affecting
comparability and
purchase price
allocation
amortisation.
As published in the Interim report January-
Board of Directors' dividend proposal
The Board of Directors proposes that a dividend of
The first instalment of
The second instalment of
ANALYST AND PRESS CONFERENCE
A virtual analyst and press conference will be held as a webinar today, Thursday
If you only wish to view the stream, please register at: http://www.mediaserver.fi/live/wartsila.
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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 5637
natalia.valtasaari@wartsila.com
For press information, please contact:
Executive Vice President, Communications, Branding & Marketing
Tel. +358 10 709 5599
atte.palomaki@wartsila.com
www.wartsila.com
https://news.cision.com/wartsila-corporation/r/wartsila-s-financial-statements-bulletin-january-december-2020,c3274093
https://mb.cision.com/Public/15003/3274093/88fb1882e3008399.pdf
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