WÄRTSILÄ INTERIM REPORT JANUARY- MARCH 2011

Wärtsilä Corporation INTERIM REPORT 20 April 2011 at 8.30 a.m. local time PROFITABLE GROWTH MARKED THE START OF THE YEAR FIRST QUARTER HIGHLIGHTS - Net sales increased 18% to EUR 1,083 million (922) - Operating result EUR 113 million, or 10.4% of net sales (EUR 94 million and 10.2%) - Cash flow from operating activities, EUR 133 million (181) - Earnings per share amounted to EUR 0.38 (0.34) - Order intake grew by 11% to EUR 979 million (881) The operating result and earnings per share are shown excluding nonrecurring items. Wärtsilä recognised EUR 2 million (44) of nonrecurring items related to restructuring measures during the review period. OLE JOHANSSON, PRESIDENT AND CEO: "I am pleased with the start of the year that saw increased sales and solid profitability. As expected the Services business showed growth as a result of our customers increasing the utilisation of their assets. The Power Plants markets continued on a good level with an increasing interest in natural gas based power generation. In Ship Power we also see further natural gas related prospects, as well as notable activity in the offshore segment. We are seeing signs, however, of uncertainty in the global business environment and some customers seem hesitant in decision making. Our restructuring measures have resulted in improved efficiency and competitiveness and provide a good basis for profitable growth in 2011." WÄRTSILÄ'S PROSPECTS FOR 2011 REITERATED Wärtsilä expects its net sales for 2011 to grow by 3-5% and operational profitability (EBIT% before nonrecurring items) to be around 11%. ANALYST AND PRESS CONFERENCE An analyst and press conference will be held on Wednesday 20 April 2011, at 10.45 a.m. Finnish time (8.45 a.m. UK time), at the Wärtsilä headquarters in Helsinki, Finland. The combined web- and teleconference will be held in English and can be viewed on the internet at the following address: http://storm.zoomvisionmamato.com/player/wartsila/objects/szrhjvp1. To participate in the teleconference please register at the following address: http://www.yourconferencecentre.com/r.aspx?p=1&a=DyyfcqKGHISMom. You will receive dial-in details once you have registered. If you wish to ask questions during the teleconference, press the *-button followed by the 1-button on your phone to register for a question and the # -key to withdraw a question. The event name is: Wärtsilä Interim Report Q1 2011. Please be ready to state your details and the name of the conference to the operator. If problems occur, please press the *-button followed by the 0-button. An on-demand version of the webcast will be available on the company website later the same day. For further information, please contact: Raimo Lind Executive Vice President & CFO Tel: +358 10 709 5640 raimo.lind@wartsila.com Pauliina Tennilä Director, Investor Relations Tel: +358 40 570 5530 pauliina.tennila@wartsila.com For press information, please contact: Atte Palomäki Group Vice President, Communications & Branding Tel: +358 40 547 6390 atte.palomaki@wartsila.com Wärtsilä in brief Wärtsilä is a global leader in complete lifecycle power solutions for the marine and energy markets. By emphasising technological innovation and total efficiency, Wärtsilä maximises the environmental and economic performance of the vessels and power plants of its customers. In 2010, Wärtsilä's net sales totalled EUR 4.6 billion with approximately 17,500 employees. The company has operations in 160 locations in 70 countries around the world. Wärtsilä is listed on the NASDAQ OMX Helsinki, Finland. INTERIM REPORT JANUARY-MARCH 2011 This interim report is unaudited. All share related financial ratios and their comparison figures have been calculated based on the new amount of shares. REVIEW PERIOD JANUARY - MARCH 2011 IN BRIEF MEUR 1-3/2011 1-3/2010 Change 2010 Order intake 979 881 11% 4 005 Order book 31 March 3 669 4 330 -15% 3 795 Net sales 1 083 922 18% 4 553 Operating result 113 94 21% 487 % of net sales 10.4% 10.2%   10.7% Profit before taxes 107 49   548 Earnings/share, EUR 0.38 0.34   1.68 Cash flow from operating activities 133 181   663 Net interest-bearing debt at the end of the period -17 410   -165 Gross capital expenditure 19 15   98 The operating result and earnings per share in the table above are shown excluding nonrecurring items. Wärtsilä recognised EUR 2 million (44) of nonrecurring items related to restructuring during the review period. MARKET DEVELOPMENT SHIP POWER Offshore and special vessel markets most active During the first months of the year overall vessel ordering activity was at a lower level than at the end of 2010. There was a slowdown in bulk carrier orders. However, in the container segment a few owners have placed some significant orders. As expected, activity continued at a good level in the offshore and the more specialised tonnage markets. In the offshore market, the demand for drill ships and platform supply vessels has been active and rising oil prices are expected to drive that demand further. During the review period, China and Korea continued to be the most important shipbuilding countries - in number of vessels China was slightly bigger whereas in terms of dead weight tonnage (DWT) Korea was slightly ahead. The Chinese owners continued to place a high share of all new orders with the support of Chinese funding. Growing shipbuilding nations, such as Brazil, were also active and secured an increasing share of the orders. Ship Power market shares Wärtsilä's share of the market in medium speed main engines remained at 42% (42% at the end of the previous quarter) and its market share in low speed main engines decreased to 11% (13). In auxiliary engines, Wärtsilä's share was 3% (4). POWER PLANTS Good demand from emerging markets Market activity continued at a good level during the first quarter of 2011. The demand was active for small and medium size natural gas based projects while some larger investments were delayed. Industrial output increased in most emerging markets, driving demand from independent power producers (IPP's), utilities and industrial customers. The financial crisis led to the postponement of investments for power generation in 2009 and 2010, and this is now creating demand in several markets. Power Plants market position In 2010, the overall market for gas and liquid fuel based power generation was approximately 57,000 MW. This includes all prime mover units of over 5 MW. Wärtsilä's share represented 5.6% of the market. This makes Wärtsilä the fourth largest supplier of gas and liquid fuel based power plants. With its unique value proposition, Wärtsilä is continuously strengthening its position in the gas based power plant market by capturing market share from other technologies. SERVICES The service market is showing signs of growth. The number of idle vessels was on a lower level than during the previous year. However, the average speed of the fleet has continued to decrease and the number of anchored vessels was still at a high level. Power Plants customers continued to have a stable demand for services. Both Ship Power and Power Plants customers are looking to ensure cost effective and energy efficient operations and high reliability. This is evident in the interest in various operation, maintenance and technical service agreements. ORDER INTAKE The order intake for the review period totalled EUR 979 million (881), an increase of 11%. In relation to the previous quarter Wärtsilä's total order intake decreased 2% (EUR 1,003 million in the fourth quarter of 2010). The book- to-bill ratio for the first quarter was 0.90 (0.96). Ship Power's order intake for the first three months totalled EUR 173 million (90), up 92%. Compared to the previous quarter, order intake was down 3% (EUR 178 million in the fourth quarter of 2010).  During the first quarter, Wärtsilä received a significant order for a ferry from the Finnish ship owner Viking Line. The vessel will be the largest passenger vessel ever to operate on LNG. Merchant segment orders represented 29% of the total orders during the first quarter. The offshore segment continued to be active with a 27% share of total orders, followed by Cruise & Ferry and Special vessels with 16% and 15% respectively. The Navy segment represented a 7% share and Ship Design 6% share of the total. In January 2011, the company signed a turnkey contract with Containerships Ltd Oy of Finland for retrofitting a Wärtsilä fresh water scrubber in order to reduce sulphur emissions. This is Wärtsilä's first commercial marine scrubber project for a main engine and the company is the first manufacturer to have been awarded the IMO certificate for a marine scrubber by the classification societies Det Norske Veritas and Germanischer Lloyd. The order intake for Power Plants in the first quarter totalled EUR 253 million (267), which was 5% less than for the corresponding period last year. Compared to the previous quarter, the Power Plants order intake decreased 20% (EUR 317 million in the fourth quarter of 2010). During the first quarter, Wärtsilä received several orders from Turkey, including an order for a 135 MW power plant with seven Wärtsilä 18V50SG natural gas fuelled engines. The plant is scheduled for completion in autumn 2011, and will supply power to the national grid. Other important orders were received from St Barthelemy, India and Brazil. In the Power Plants business, the timing of projects results in swings between quarters. The order intake for the Services business totalled EUR 551 million (522) in the first quarter, a growth of 6% compared to the corresponding period in 2010. Compared to the fourth quarter 2010, the order intake increased by 8% (EUR 510 million in the fourth quarter of 2010). During the review period Wärtsilä signed its largest ever long-term marine maintenance support agreement. The contract with Royal Caribbean Cruises Ltd covers 29 vessels with an aggregated output of approximately 1,400 MW. The maintenance support agreement contains a wide range of services, including maintenance planning, spare parts logistics optimisation, development and testing of engine components, fuel consumption optimisation, as well as an advisory service for overhauls and workshop services. Order intake by business MEUR 1-3/2011 1-3/2010 Change 1-12/2010 Ship Power 173 90 92% 657 Power Plants 253 267 -5% 1 413 Services 551 522 6% 1 931 Order intake, total 979 881 11% 4 005 Order intake Power Plants MW 1-3/2011 1-3/2010 Change 1-12/2010 Oil 260 97 168% 1 797 Gas   422 360 17% 1 377 ORDER BOOK The total order book at the end of the review period stood at EUR 3,669 million (4,330), a decrease of 15%. The Ship Power order book stood at EUR 1,699 million (2,242), which is 24% lower than at the same date last year. At the end of the review period, the Power Plants order book amounted to EUR 1,204 million (1,392), a decrease of 14%. The Services order book totalled EUR 766 million (696) at the end of the review period, representing an increase of 10%. Order book by business MEUR 31 Mar. 2011 31 Mar. 2010 Change 31 Dec. 2010 Ship Power 1 699 2 242 -24% 1 825 Power Plants 1 204 1 392 -14% 1 299 Services 766 696 10% 671 Order book, total 3 669 4 330 -15% 3 795 NET SALES Wärtsilä's net sales for January-March 2011 increased by 18% and totalled EUR 1,083 million (922). Ship Power's net sales increased by 6% and totalled EUR 294 million (278). Net sales for Power Plants totalled EUR 349 million (237), an increase of 47%. Net sales from the Services business totalled EUR 439 million (409), an increase of 7%. Of the total net sales, Ship Power accounted for 27%, Power Plants for 32% and Services for 41%. Of Wärtsilä's net sales for January-March 2011, approximately 74% was EUR denominated, 9% USD denominated, with the remainder being split between several currencies. Net sales by business MEUR 1-3/2011 1-3/2010 Change 1-12/2010 Ship Power 294 278 6% 1 201 Power Plants 349 237 47% 1 525 Services 439 409 7% 1 823 Net sales, total 1 083 922 18% 4 553 FINANCIAL RESULTS The operating result before nonrecurring expenses totalled EUR 113 million (94) for January-March 2011, which is 10.4% of net sales (10.2). Including nonrecurring expenses, the operating result was EUR 111 million or 10.2% of net sales. Wärtsilä recognised EUR 2 million (44) of nonrecurring expenses related to the restructuring measures during the review period January-March 2011. Financial items amounted to EUR -4 million (0). Net interest totalled EUR -2 million (-3). Dividends received totalled EUR 1 million (2). Profit before taxes amounted to EUR 107 million (49). Taxes in the reporting period amounted to EUR 31 million (14). Earnings per share after non-recurring expenses were EUR 0.38 (0.16) and equity per share was 7.32 euro (6.94). BALANCE SHEET, FINANCING AND CASH FLOW Cash flow from operating activities for January-March 2011 totalled EUR 133 million (181). Net working capital at the end of the period totalled EUR 142 million (332). Advances received at the end of the period totalled EUR 620 million (EUR 616 million at the end of the previous quarter). Liquid reserves at the end of the period amounted to EUR 619 million (252). Net interest-bearing loan capital totalled EUR -17 million (410). Dividends totalling EUR 271 million were paid during the first quarter. Wärtsilä had interest bearing debt totalling EUR 618 million (682) at the end of March 2011. The existing funding programmes include long-term loans of EUR 553 million, unutilised Committed Revolving Credit Facilities totalling EUR 550 million and Finnish Commercial Paper programmes totalling EUR 700 million. The total amount of short-term debt maturing within the next 12 months is EUR 65 million. The solvency ratio was 37.5% (36.4) and gearing was 0.00 (0.31). CAPITAL EXPENDITURE Gross capital expenditure in the review period totalled EUR 19 million (15), which comprised EUR 5 million (1) in acquisitions and investments in securities, and EUR 14 million (14) in intangible assets and property, plant and equipment. Depreciation amounted to EUR 29 million (30). Maintenance capital expenditure for 2011 will be in line with or slightly above depreciation. Possible acquisition opportunities may affect capital expenditure for the year. RESTRUCTURING PROGRAMMES Following the global financial crisis, Wärtsilä began the process of adapting its activities through various restructuring measures with the aim of reducing approximately 1,800 persons. To date the number of personnel has been reduced by approximately 1,500. When fully implemented, it is estimated that the reductions will decrease costs by approximately EUR 130 million. Of these cost savings, about EUR 60 million had materialised by the end of 2010. The remainder of the savings will gradually materialise during 2011. Wärtsilä anticipates that the majority of these cost savings will be permanent. The total nonrecurring costs related to the restructuring will be approximately EUR 150 million, out of which EUR 115 million has been recognised by the end of 2010. During the review period, Wärtsilä recognised EUR 2 million (44) of nonrecurring items related to the restructuring measures. The remainder of the costs will be recognised during 2011. PERSONNEL Wärtsilä had 17,526 (18,410) employees at the end of March 2011. The average number of personnel for January-March 2011 totalled 17,544 (18,481). Ship Power employed 943 (1,048) people. Power Plants employed 799 (853) people, Services 11,024 (11,357) and Wärtsilä Industrial Operations 3,990 (4,697) people. Of Wärtsilä's total employees, 19% (18) was located in Finland, 6% (8) in the Netherlands and 30% (31) in the rest of Europe. The personnel employed in Asia represented 32% (30), out of which 7% (7) were in China, in India 6% (6), in Singapore 5% (5), and in the rest of Asia 15% (13). MANUFACTURING The set up for manufacturing controllable pitch propellers at the joint venture, Wärtsilä CME Zhenjiang Propeller Co. Ltd. in Zhenjiang, China, is proceeding according to plan. The majority of the equipment needed will be relocated from the Wärtsilä factory in Drunen. The inauguration of the new factory and the first deliveries are planned for the second quarter of 2011. The activities in Wärtsilä's joint venture with Transmashholding in Russia are also proceeding according to plan. The joint venture is preparing to manufacture modern and multipurpose diesel engines to be used in shunter locomotives and for various marine and power applications. RESEARCH & DEVELOPMENT As part of Wärtsilä's strategy to strengthen the company's leading position in gas engine technology, the company has initiated a major project to further develop its low speed engine portfolio to include gas engines, alongside its leading portfolio of medium speed gas and dual fuel engines. Natural gas is currently the alternative fuel offering the biggest potential in reducing emissions while at the same time being commercially viable. NEW PRODUCT LAUNCHES Wärtsilä and Aker Solutions have signed an agreement to jointly develop a new and environmentally sound concept for offshore wind farm installation vessels. Wärtsilä will provide the ship design, electrical power generation, propulsion machinery and high-end automation, whilst Aker Solutions will supply the jacking system. Wärtsilä, together with Aker Solutions, will also offer a 24/7 global support service for maintenance, repairs, and component supply to the vessels. The Wärtsilä engines to be used will be dual fuel engines and able to operate on liquefied natural gas (LNG). SUSTAINABLE DEVELOPMENT Wärtsilä is well positioned to reduce the use of natural resources and emissions, thanks to its various technologies and specialised services. Wärtsilä's R&D efforts continue to focus on the development of advanced environmental technologies and solutions. The company is committed to supporting the UN Global Compact and its principles with respect to human rights, labour, the environment and anti-corruption. Wärtsilä's share is included in several sustainability indexes. In April, Wärtsilä entered into co-operation with Crisis Management Initiative, an independent Finnish non-profit organisation led by Nobel Peace Prize laureate Martti Ahtisaari. As lead partner, Wärtsilä supports the activities of CMI in conflict resolving and sustainable peace building through partnership programmes in selected areas across the globe. CHANGES IN MANAGEMENT Wärtsilä's Board of Directors has appointed Mr Björn Rosengren M.Sc. (Tech.), born 1959, as the new President and CEO of Wärtsilä Corporation, with effect from 1 September 2011. Mr Rosengren will succeed Mr Ole Johansson, who will, at that time, exercise his right to retire at the age of 60. SHARES AND SHAREHOLDERS The shares issued in the free share issue approved by Wärtsilä Corporation's Annual General Meeting on 3 March 2011 were entered in the share register on 8 March 2011. The total amount of Wärtsilä shares increased to 197,241,130, as shareholders were issued one new share for each old share. The new shares became subject to public trading as of 9 March 2011. The figures in the table below have been adjusted to reflect the increased number of shares. SHARES ON THE HELSINKI EXCHANGE 31 March 2011 Number of Number of Number of shares traded   shares votes 1-3/2011 -------------------------------------------------------------------------------- WRT1V 197 241 130 197 241 130 43 265 553 1 Jan. -31 March 2011 High Low Average 1) Close --------------------------------------------------------------------------------  Share price 29.55 23.94 27.02 27.55 1) Trade-weighted average price     31 Mar. 2011 31 Mar. 2010 ---------------------------------------------------------------------- Market capitalisation, EUR   5 433 3 698 million Foreign shareholders   49.4% 46.4% FLAGGING NOTIFICATIONS During the review period, Wärtsilä was informed of the following changes in ownership: On 5 January 2011, BlackRock, Inc. increased its holding in Wärtsilä Corporation. Following the transaction BlackRock, Inc owned 4,941,593 shares or 5.01% of Wärtsilä's share capital and total votes. DECISIONS TAKEN BY THE ANNUAL GENERAL MEETING Wärtsilä's Annual General Meeting held on 3 March 2011 approved the financial statements and discharged the members of the Board of Directors and the company's President & CEO from liability for the financial year 2010. The Meeting approved the Board of Directors' proposal to pay a dividend of EUR 1.75 per share and an extra dividend of EUR 1.00 per share, totalling EUR 2.75 per share. The dividend was paid on 15 March 2011. The Annual General Meeting decided that the Board of Directors shall have nine members. The following were elected to the Board: Ms Maarit Aarni-Sirviö, Mr Kaj-Gustaf Bergh, Mr Alexander Ehrnrooth, Mr Paul Ehrnrooth, Mr Lars Josefsson, Mr Bertel Langenskiöld, Mr Mikael Lilius, Mr Markus Rauramo and Mr Matti Vuoria. The firm of public auditors KPMG Oy Ab were appointed as the company's auditors for the year 2011. Free share issue The Annual General Meeting decided to approve the free share issue in accordance with the proposal of the Board of Directors. The free share issue was implemented by applying the pre-emptive right of the shareholders so that for each old share one new share was issued. Thereby a total of 98,620,565 new shares were issued. The new shares were registered in the trade register on 8 March 2011. Organisation of the Board of Directors The Board of Directors of Wärtsilä Corporation elected Mikael Lilius as its chairman and Matti Vuoria as the deputy chairman. The Board decided to establish an Audit Committee, a Nomination Committee and a Remuneration Committee. The Board appointed from among its members the following members to the Committees: Audit Committee: Chairman Markus Rauramo, Maarit Aarni-Sirviö, Alexander Ehrnrooth, Bertel Langenskiöld Nomination Committee: Chairman Mikael Lilius, Kaj-Gustaf Bergh, Lars Josefsson, Matti Vuoria Remuneration Committee: Chairman Mikael Lilius, Paul Ehrnrooth, Matti Vuoria RISKS AND BUSINESS UNCERTAINTIES The overall risks from the financial crisis continue to decrease within Ship Power. However, some risk of rescheduling and slippages in terms of delivery times still remains. The impact of rising oil prices on the global economy and trade poses a risk for the shipping sector. In the Power Plants business, larger projects in certain regions may still be facing timing issues. The turmoil in the Middle East and North Africa has increased the risk of postponement of new power plant investments in the region. The annual report for 2010 contains a thorough description of Wärtsilä's risks and risk management. MARKET OUTLOOK In the marine market, the merchant segment is expected to be slow in 2011, as the market is still suffering from overcapacity and sluggish earnings development. The ordering activity for bulk carriers is expected to continue to slow down. However, the outlook for certain sub-segments, like containers and LNG carriers, is improving. The Offshore and Special vessel segments have remained lively and this is expected to continue. There is rising interest and activity in natural gas applications. Wärtsilä Ship Power reiterates its view of continued price pressure within its markets, and its expectation of moderately better order intake in 2011 compared to the previous year. Recovery in the power generation market is expected to continue in 2011. The growing emerging markets will continue to invest in new power generation capacity, which will increase demand - especially in the flexible baseload segment. The ramp down of older coal based generation will increase the demand for gas based generation in the medium to long term. This is supported by the production of shale gas in the US, and the expectation that natural gas prices will remain competitive. Wärtsilä Power Plants estimates its order intake to remain at a good level in 2011. The Services market is expected to follow the global economy to growth this year. The largest growth potential comes from Asia and the Americas. Power Plants customers continue to have a stable demand for services and there are good prospects for new contracts especially in Asia. In Europe, marine customers are still focusing on cost savings while in Asia the markets are normalising. The outlook is also good for the offshore services market. The competition for services projects and maintenance work in the marine market will remain tight. However, Wärtsilä Services is well positioned thanks to its diversified customer base and broad geographical presence, as well as the wide range of services offered. We expect a sustainable recovery in the marine service market in 2011. WÄRTSILÄ'S PROSPECTS FOR 2011 REITERATED Wärtsilä expects its net sales for 2011 to grow by 3-5% and operational profitability (EBIT% before nonrecurring items) to be around 11%. WÄRTSILÄ INTERIM REPORT JANUARY - MARCH 2011 This interim financial report is prepared in accordance with IAS 34 (Interim Financial Reporting) using the same accounting policies and methods of computation as in the annual financial statements for 2010. All figures in the accounts have been rounded and consequently the sum of individual figures can deviate from the presented sum figure. Use of estimates The preparation of the financial statements in accordance with IFRS requires management to make estimates and assumptions that affect the valuation of the reported assets and liabilities and other information, such as contingent liabilities and the recognition of income and expenses in the income statement. Although the estimates are based on the management's best knowledge of current events and actions, actual results may differ from the estimates. IFRS amendments Of the amended International Financial Reporting Standards (IFRS) and interpretations mandatory as of 1 January 2011 the following are applicable on the Group reporting: * Amendment to IAS 32 Financial instruments: Presentation - Classification of Rights Issues * Revised IAS 24 Related Party Disclosures The adaption of the revised standards and interpretations does not have any material effect on the interim report. This interim report is unaudited. All share related financial ratios and their comparison figures have been calculated based on the new amount of shares. CONDENSED INCOME STATEMENT MEUR 1-3/2011 1-3/2010 2010 ------------------------------------------------------------------------------- Net sales 1 083 922 4 553 Other operating income 10 7 52 Expenses -956 -851 -4 082 Depreciation, amortisation and impairment -29 -30 -116 Share of result of associates and joint ventures 3 2 5 Operating result 111 49 412 Financial income and expenses -4   -13 Net income from financial assets available for sale   149 Profit before taxes 107 49 548 Income taxes -31 -14 -151 ------------------------------------------------------------------------------- Profit for the financial period 76 35 397 ------------------------------------------------------------------------------- Attributable to: Owners of the parent 74 32 389 Non-controlling interests 2 2 11 ------------------------------------------------------------------------------- Total 76 35 397 ------------------------------------------------------------------------------- Earnings per share attributable to equity holders of the parent company: ------------------------------------------------------------------------------- Earnings per share, EUR (basic and diluted) 0,38 0,16 1,96 ------------------------------------------------------------------------------- STATEMENT OF COMPREHENSIVE INCOME Profit for the financial period 76 35 397 Other comprehensive income after tax: Exchange differences on translating foreign operations -9 13 17 Financial assets available for sale    fair valuation 6 10 30    transferred to statement of income   -110 Cash flow hedges 4 -9 -9 Share of other comprehensive income of associates and joint ventures 1 ------------------------------------------------------------------------------- Other comprehensive income 1 13 -71 ------------------------------------------------------------------------------- Total comprehensive income for the period 77 48 326 ------------------------------------------------------------------------------- Total comprehensive income attributable to: Owners of the parent 77 45 313 Non-controlling interests 1 3 13 -------------------------------------------------------------------------------   77 48 326 CONDENSED STATEMENT OF FINANCIAL POSITION MEUR 31 Mar. 2011 31 Mar. 2010 31 Dec. 2010 -------------------------------------------------------------------------------- Non-current assets Intangible assets 771 782 780 Property, plant and equipment 440 456 466 Investments in associates and joint ventures 70 61 65 Financial assets available for sale 26 166 18 Deferred tax receivables 118 97 122 Other receivables 32 30 32 --------------------------------------------------------------------------------   1 458 1 593 1 483 Current assets Inventories 1 239 1 633 1 244 Other receivables 1 218 1 169 1 192 Cash and cash equivalents 619 252 776 --------------------------------------------------------------------------------   3 075 3 054 3 213 -------------------------------------------------------------------------------- Total assets 4 533 4 647 4 696 -------------------------------------------------------------------------------- Equity Share capital 336 336 336 Other equity 1 107 1 033 1 302 -------------------------------------------------------------------------------- Total equity attributable to equity holders of the parent 1 443 1 369 1 638 Non-controlling interests 24 19 26 -------------------------------------------------------------------------------- Total equity 1 467 1 388 1 664 Non-current liabilities Interest-bearing debt 553 611 572 Deferred tax liabilities 66 95 70 Other liabilities 180 192 189 --------------------------------------------------------------------------------   799 898 831 Current liabilities Interest-bearing debt 65 71 56 Other liabilities 2 201 2 290 2 145 --------------------------------------------------------------------------------   2 266 2 361 2 201 Total liabilities 3 066 3 259 3 032 -------------------------------------------------------------------------------- Total equity and liabilities 4 533 4 647 4 696 -------------------------------------------------------------------------------- CONDENSED CASH FLOW STATEMENT MEUR 1-3/2011 1-3/2010 2010 -------------------------------------------------------------------------------- Cash flow from operating activities: Profit for the financial period 76 35 397 Depreciation, amortisation and impairment 29 30 116 Financial income and expenses 4   13 Selling profit and loss of fixed assets and other changes -1 3 -147 Share of result of associates and joint ventures -3 -2 -5 Income taxes 31 14 151 Changes in working capital 30 166 370 -------------------------------------------------------------------------------- Cash flow from operating activities before financial items and taxes 166 246 896 Financial items and paid taxes -34 -65 -233 -------------------------------------------------------------------------------- Cash flow from operating activities 133 181 663 -------------------------------------------------------------------------------- Cash flow from investing activities: Investments in shares and acquisitions -5 -1 -6 Net investments in property, plant and equipment and intangible assets -14 -13 -83 Proceeds from sale of financial assets available for sale 2   173 Cash flow from other investing activities 1 4 -5 -------------------------------------------------------------------------------- Cash flow from investing activities -16 -11 79 -------------------------------------------------------------------------------- Cash flow from financing activities: Proceeds from non-current borrowings 25 37 Repayments and other changes in non-current loans 2 -12 -76 Changes in current loans and other changes 2 -9 -2 Dividends paid -274 -173 -175 -------------------------------------------------------------------------------- Cash flow from financing activities -270 -168 -216 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Change in cash and cash equivalents, increase (+) / decrease (-) -153 2 525 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Cash and cash equivalents at beginning of period 776 244 244 Exchange rate changes -5 6 7 Cash and cash equivalents at end of period 619 252 776 -------------------------------------------------------------------------------- CONSOLIDATED STATEMENT OF CHANGES IN EQUITY Total equity attributable to equity holders of MEUR the parent Non-     controlling Total             interests equity -------------------------------------------------------------------------------- Fair     Share    value   Share issue Translation and other Retained   capital premium differences reserves earnings -------------------------------------------------------------------------------- Equity on 1 January 2011 336 61 8 12 1 221 26 1 664 Dividends         -271 -2 -273 Total comprehensive income for the period     -7 10 74 1 77 -------------------------------------------------------------------------------- Equity on 31 Mar. 2011 336 61 0 22 1 023 24 1 467 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Equity on 1 January 2010 336 61 -6 99 1 006 16 1 512 Dividends         -173   -173 Total comprehensive income for the period     12 1 33 3 48 -------------------------------------------------------------------------------- Equity on 31 Mar. 2010 336 61 6 100 866 19 1 388 -------------------------------------------------------------------------------- GEOGRAPHICAL AREAS Europe Asia Americas Other Total MEUR --------------------------------------------------- Net sales 1-3/2011 385 369 226 102 1 083 Net sales 1-3/2010 279 342 199 101 922 --------------------------------------------------- INTANGIBLE ASSETS AND PROPERTY, PLANT & EQUIPMENT MEUR 1-3/2011 1-3/2010 2010 ---------------------------------------------------------------------------- Intangible assets Book value at 1 January 780 779 779 Changes in exchange rates -5 10 20 Additions 7 5 17 Amortisation and impairment -11 -11 -42 Disposals and intra-balance sheet transfer   6 ---------------------------------------------------------------------------- Book value at end of period 771 782 780 ---------------------------------------------------------------------------- Property, plant and equipment Book value at 1 January 466 457 457 Changes in exchange rates -6 7 14 Additions 8 10 75 Depreciation and impairment -18 -18 -73 Disposals and intra-balance sheet transfer -8 -1 -6 ---------------------------------------------------------------------------- Book value at end of period 440 456 466 ---------------------------------------------------------------------------- GROSS CAPITAL EXPENDITURE MEUR 1-3/2011 1-3/2010 2010 ---------------------------------------------------------------------------- Investments in securities and acquisitions 5 1 6 Intangible assets and property, plant and equipment 14 14 92 ---------------------------------------------------------------------------- Total 19 15 98 ---------------------------------------------------------------------------- INTEREST-BEARING LOAN CAPITAL MEUR 1-3/2011 1-3/2010 2010 ---------------------------------------------------------------------------- Non-current liabilities 553 611 572 Current liabilities 65 71 56 Loan receivables -17 -20 -17 Cash and cash equivalents -619 -252 -776 ---------------------------------------------------------------------------- Net -17 410 -165 ---------------------------------------------------------------------------- FINANCIAL RATIOS 1-3/2011 1-3/2010 2010 ---------------------------------------------------------------------------- Earnings per share, EUR (basic and diluted) 0,38 0,16 1,96 Equity per share, EUR 7,32 6,94 7,59 Solvency ratio, % 37,5 36,4 40,8 Gearing 0,00 0,31 -0,09 ---------------------------------------------------------------------------- PERSONNEL   1-3/2011 1-3/2010 2010 ---------------------------------------------------------------------------- On average 17 544 18 481 18 000 At end of period 17 526 18 410 17 528 ---------------------------------------------------------------------------- CONTINGENT LIABILITIES MEUR 1-3/2011 1-3/2010 2010 ---------------------------------------------------------------------------- Mortgages 57 56 59 Chattel mortgages 17 12 18 ---------------------------------------------------------------------------- Total 74 68 77 ---------------------------------------------------------------------------- Guarantees and contingent liabilities on behalf of Group companies 601 723 623 on behalf of associated companies 9 8 9 Nominal amount of rents according to leasing contracts 70 81 74 ---------------------------------------------------------------------------- Total 679 812 706 ---------------------------------------------------------------------------- NOMINAL VALUES OF DERIVATIVE INSTRUMENTS MEUR Total amount of which closed -------------------------------------------------------------------------------- Interest rate swaps 20 Foreign exchange forward contracts 1 007 135 Currency options, purchased 12 Currency options, written -------------------------------------------------------------------------------- CONDENSED STATEMENT OF INCOME, QUARTERLY MEUR 1-3/2011 10-12/2010 7-9/2010 4-6/2010 1-3/2010 -------------------------------------------------------------------------------- Net sales 1 083 1 462 1 039 1 131 922 Other operating income 10 21 13 11 7 Expenses -956 -1 313 -910 -1 007 -851 Depreciation, amortisation and impairment -29 -29 -29 -28 -30 Share of result of associates and joint ventures 3 2 2   2 Operating result 111 143 114 105 49 Financial income and expenses -4 -10 -6 4 Net income from financial assets available for sale 117 32 Profit before taxes 107 251 140 109 49 Income taxes -31 -71 -35 -31 -14 -------------------------------------------------------------------------------- Profit for the financial period 76 179 104 79 35 -------------------------------------------------------------------------------- Attributable to: Owners of the parent 74 176 101 76 32 Non-controlling interests 2 4 3 3 2 -------------------------------------------------------------------------------- Total 76 179 104 79 35 -------------------------------------------------------------------------------- Earnings per share attributable to equity holders of the parent company: -------------------------------------------------------------------------------- Earnings per share, EUR 0,38 0,89 0,51 0,39 0,16 -------------------------------------------------------------------------------- CALCULATION OF FINANCIAL RATIOS Earnings per share (EPS) Profit for the period attributable to equity holders of the parent company ------------------------------------------------------------------------ Adjusted number of shares over the period Equity per share Equity attributable to equity holders of the parent company ------------------------------------------------------------------------- Adjusted number of shares at the end of the period Solvency ratio Equity -------------------------------------------------------------------------x 100 Total equity and liabilities - advances received Gearing Interest-bearing liabilities - cash and cash equivalents ------------------------------------------------------------------------- Equity 19 April 2011 Wärtsilä Corporation Board of Directors Interim Report Q1/2011: http://hugin.info/131481/R/1507975/442880.pdf This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that: (i) the releases contained herein are protected by copyright and other applicable laws; and (ii) they are solely responsible for the content, accuracy and originality of the information contained therein. Source: Wärtsilä Oyj Abp via Thomson Reuters ONE [HUG#1507975]

Companies

Wartsila OYJ ABP (0IKJ)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today