HELSINKI, January 30 /PRNewswire/ --
Ole Johansson, President and CEO:
The year 2008 will go down in history as a year of contrasts for Wärtsilä. On one hand it was another record year; net sales grew by more than 23% and the profitability also improved clearly. The order intake was brisk in the beginning of the year and by the end of June the order book reached a level of 7.5 billion euros. On the other hand, the global financial and economic crisis created uncertainty in Wärtsilä's main markets. As a result order intake, particularly in our Ship Power sector, slowed down markedly during the second half of the year and there was an increase in order cancellations. During the review period cancellations of EUR 333 million materialised and we see an additional EUR 800 million at risk. The power plants markets continued to be active throughout the year and orders were signed even at the very end of the year. While it is difficult to foresee the extent and duration of the downturn, the effect on our activities should, at least during the current year, be limited. We look at 2009 with confidence. The substantial order book at the end of the year should support net sales growing 10-20% in 2009 even with the risk of cancellations, which would maintain the profitability at last year's good level.
Review Period January-December 2008 in Brief
MEUR 1-12/2008 1-12/2007 Change Order intake 5 573 5 633 -1% Order book at the end of the period 6 883*) 6 308 9% Net sales 4 612 3 763 23% Operating result 525 380 38% % of net sales 11.4% 10.1% Profit before taxes 516 372 39% Earnings/share, EUR 3.88 1) 2.74 Cash flow from operating activities 278 431 Interest-bearing net debt at the end of the period 455 -27 Gross capital expenditure 366 231 1) 3.96 euros before the effect of the combination of Wärtsilä's share series. *) Cancellations amounting to EUR 333 million and the order book of Bio Power amounting to EUR 116 million have been eliminated from the order book. Additions relating to acquisitions and other adjustments amounted to EUR 158 million.
Wärtsilä's Prospects for 2009
Despite the risk of cancellations, the substantial order book at the end of the year should support a 10-20 percent growth in net sales for 2009. On the same basis, profitability will be at last year's good level.
The complete financial statement release can be found at : http://www.wartsila.com/,en,press,0,,2900555D-410D-4873-A25E-1656239191E...
Analyst and Press Conference An analyst and press conference was held on Friday 30 January 2009, at 10.45 a.m. Finnish time (8.45 a.m. UK time), at the Wärtsilä headquarters in Helsinki, Finland.
An on-demand version of the webcast will be available later today at http://www.wartsila.com.
Wärtsilä enhances the business of its customers by providing them with complete lifecycle power solutions. When creating better and environmentally compatible technologies, Wärtsilä focuses on the marine and energy markets with products and solutions as well as services. Through innovative products and services, Wärtsilä sets out to be the most valued business partner of all its customers. This is achieved by the dedication of close to 19,000 professionals manning 160 locations in close to 70 countries around the world.
Contact: Tuula Franck, tel. +358-400-267555