GOOD ORDER INTAKE - COST INFLATION AND BUSINESS MIX BURDENED PROFITABILITY
This release is a summary of
HIGHLIGHTS FROM JULY-
- Order intake increased by 36% to
EUR 1,616 million (1,186) -
Service order intake increased by 27% to
EUR 732 million (578) -
Net sales increased by 30% to
EUR 1,433 million (1,103), of which organic growth was 22% - Book-to-bill amounted to 1.13 (1.07)
-
Comparable operating result decreased by 6% to
EUR 82 million (87), which represents 5.7% of net sales (7.9) -
Operating result decreased by 87% to
EUR 10 million (75), which represents 0.7% of net sales (6.8). This includesEUR 75 million costs related to the ramp down of manufacturing inTrieste . -
Basic earnings per share decreased to
0.00 euro (0.08) -
Cash flow from operating activities increased to
EUR 100 million (49)
HIGHLIGHTS FROM JANUARY-
- Order intake increased by 24% to
EUR 4,436 million (3,584) -
Service order intake increased by 22% to
EUR 2,275 million (1,868) -
Order book at the end of the period increased by 17% to
EUR 6,229 million (5,325) -
Net sales increased by 28% to
EUR 4,072 million (3,181), of which organic growth was 23% - Book-to-bill amounted to 1.09 (1.13)
-
Comparable operating result increased by 17% to
EUR 232 million (199), which represents 5.7% of net sales (6.3) -
Operating result decreased by
EUR 232 million toEUR -62 million (170), which represents -1.5% of net sales (5.3). This includesEUR 200 million costs related toWärtsilä's exit fromRussia andEUR 75 million costs related to the ramp down of manufacturing inTrieste . -
Basic earnings per share decreased to
-0.16 euro (0.19) -
Cash flow from operating activities decreased to
EUR -113 million (360)
WÄRTSILÄ'S PROSPECTS
HÅKAN AGNEVALL, PRESIDENT AND CEO: Orders continued to increase
"During the third quarter of 2022, uncertainty about economic development and geopolitical tensions continued. Intensifying cost inflation, prevailing disturbances in supply chains, tightening monetary policies, and challenging macro environment are creating turbulence within the global business environment. Despite the challenging market conditions, we were able to clearly grow our order intake.
The energy market remained volatile. Nevertheless, we again received important orders notably for thermal balancing and energy storage solutions. For example, we will deliver a total of 2 GWh of energy storage systems for one of the world's largest solar-plus-storage project portfolios in
Similarly in the marine markets, the service business remained on a good track. The active cruise fleet has been well over 90% on average during the quarter, the offshore fleet witnessed increasing utilisation and day rates, and the demand for LNG cargoes has exceeded the available supply. However, the demand for new ships has moderated during the year, as many shipyards are operating at close to full capacity, and prices have increased. Our position as a frontrunner in marine technology was demonstrated with an order to supply a propulsion package for the world's largest aluminium catamaran. It will operate between
Total order intake increased by 36% and service order intake by 27%. High utilisation of vessels and power plants continued to support the service business in both
In October, we announced that we are taking the next step to further strengthen our marine end-to-end lifecycle offering by integrating the Voyage business into
On the technology side, we introduced the new
We expect the demand environment in the fourth quarter to be weaker than that of the corresponding period in the previous year. This reflects the fact that order intake in the last quarter of 2021 was at an all-time high. For the full year 2022, the demand is expected to be slightly higher than in the previous year. The share of equipment sales relative to service sales will be higher in 2022 compared to 2021. Cost inflation is anticipated to remain high in the last quarter of 2022 and we continue to implement price realisation and continuous improvement to mitigate the impact of cost inflation. We are executing our strategy to make
MEUR | 7-9/ 2022 | 7-9/ 2021 | Change | 1-9/ 2022 | 1-9/ 2021 | Change | 2021 |
Order intake | 1,616 | 1,186 | 36% | 4,436 | 3,584 | 24% | 5,735 |
of which services | 732 | 578 | 27% | 2,275 | 1,868 | 22% | 2,615 |
Order book, end of period | 6,229 | 5,325 | 17% | 5,859 | |||
Net sales | 1,433 | 1,103 | 30% | 4,072 | 3,181 | 28% | 4,778 |
of which services | 664 | 589 | 13% | 1,991 | 1,717 | 16% | 2,467 |
Book-to-bill | 1.13 | 1.07 | 1.09 | 1.13 | 1.20 | ||
Operating result | 10 | 75 | -87% | -62 | 170 | -137% | 314 |
% of net sales | 0.7 | 6.8 | -1.5 | 5.3 | 6.6 | ||
Comparable operating result | 82 | 87 | -6% | 232 | 199 | 17% | 357 |
% of net sales | 5.7 | 7.9 | 5.7 | 6.3 | 7.5 | ||
Comparable adjusted EBITA* | 87 | 95 | -8% | 250 | 223 | 12% | 388 |
% of net sales | 6.1 | 8.6 | 6.1 | 7.0 | 8.1 | ||
Profit before taxes | 7 | 74 | -90% | -67 | 162 | -141% | 296 |
Basic earnings/share, EUR | 0.00 | 0.08 | -0.16 | 0.19 | 0.33 | ||
Cash flow from operating activities | 100 | 49 | -113 | 360 | 731 | ||
Net interest-bearing debt, end of period | 377 | 309 | 4 | ||||
Gross capital expenditure | 111 | 98 | 143 | ||||
Gearing | 0.18 | 0.14 | 0.00 | ||||
Solvency, % | 34.5 | 39.3 | 38.6 | ||||
Personnel, end of period | 17,585 | 17,303 | 2% | 17,305 |
*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/8815882458692762635.
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, Branding & Marketing
Tel: +358 10 709 5599
atte.palomaki@wartsila.com
www.wartsila.com
https://news.cision.com/wartsila-corporation/r/wartsila-s-interim-report-january-september-2022,c3654162
https://mb.cision.com/Main/15003/3654162/1643017.pdf
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