Wärtsilä's Half year financial report January-June 2019

Wärtsilä Corporation, Stock exchange release 18 July 2019 at 08:30 UTC+2



This release is a summary of Wärtsilä’s Half Year Report January-June 2019. The complete report is attached to this release as a pdf file. It is also available at http://www.wartsilareports.com/en-US/2019/q2/frontpage/ and on the company website at www.wartsila.com.


  • Order intake decreased 11% to EUR 1,377 million (1,553)
  • Net sales decreased 2% to EUR 1,217 million (1,246)
  • Book-to-bill amounted to 1.13 (1.25)
  • Comparable operating result decreased 8% to EUR 113 million (123), which represents 9.3% of net sales (9.8)
  • Earnings per share decreased to 0.11 euro (0.13)
  • Cash flow from operating activities decreased to EUR -37 million (41)


  • Order intake decreased 9% to EUR 2,793 million (3,060)
  • Order book at the end of the period increased 10% to EUR 6,470 million (5,904)
  • Net sales increased 2% to EUR 2,368 million (2,312)
  • Book-to-bill amounted to 1.18 (1.32)
  • Comparable operating result increased 2% to EUR 215 million (211), which represents 9.1% of net sales (9.1)
  • Earnings per share decreased to 0.21 euro (0.22)
  • Cash flow from operating activities was stable at EUR -2 million (-1)


The demand for Wärtsilä’s services and solutions in the coming 12 months is expected to be somewhat below that of the previous 12 months (previously in-line). Demand by business area is anticipated to be as follows:

  • Soft in Wärtsilä Marine Business. The demand outlook has been downgraded from solid, due to lower vessel contracting volumes and an anticipated decline in the demand for scrubber solutions from last year’s exceptionally high level. Activity in the marine services market is expected to continue.
  • Soft in Wärtsilä Energy Business. The demand outlook has been downgraded from solid, as market conditions in the energy industry remain challenging, with geopolitical risks and economic uncertainty affecting customers’ appetite for investments. The demand for energy services remains healthy.

Wärtsilä’s current order book for 2019 deliveries is EUR 2,613 million (2,336). Deliveries are expected to be concentrated to the last quarter of the year.


“While the first half of 2019 was generally marked by stable development in our net sales and profitability, our performance in the second quarter was burdened by fewer power plant deliveries, as well as an unfavourable project and equipment mix.

Order intake for the first six months was below that of the previous year, largely resulting from the continued macroeconomic and geopolitical uncertainty that has prolonged customer decision-making in the energy markets. Orders received in the Marine Business remained stable during the same period, as newbuild contracting has favoured the more specialised vessel segments. Nevertheless, uncertainty regarding fuel price development has slowed scrubber orders, which, in combination with concerns related to lower overall vessel contracting volumes, has prompted us to lower our marine demand outlook for the coming twelve months. The outlook for the energy markets has also been lowered, as we expect market conditions to remain challenging in the near-term. In contrast to the softer demand trends in the equipment markets, I am pleased to note that the growth in services related sales has continued in both businesses throughout the second quarter.

The phasing of the order book indicates that volume related challenges will continue in the coming months, followed by unusually strong deliveries in the fourth quarter. Successful delivery execution, the implementation of ongoing realignment actions, and finalising certain power plant contracts will be central to our financial performance this year.

Looking beyond 2019, we are well placed to benefit from the demand for energy efficiency and the shift to low-carbon energy sources in both of our end-markets. We remain focused on improving operational efficiency and delivering increased lifecycle value to further strengthen our competitive position.”


MEUR 4-6/
Change 1-6/
Change 2018
Order intake 1 377 1 553 -11% 2 793 3 060 -9% 6 307
of which services 622 592 5% 1 275 1 258 1% 2 598
Order book, end of period 6 470 5 904 10% 6 166
Net sales 1 217 1 246 -2% 2 368 2 312 2% 5 174
of which services 612 582 5% 1 184 1 117 6% 2 419
Book-to-bill 1.13 1.25 1.18 1.32 1.22
Operating result 96 111 -13% 187 196 -4% 543
% of net sales 7.9 8.9 7.9 8.5 10.5
Comparable operating result* 113 123 -8% 215 211 2% 577
% of net sales 9.3 9.8 9.1 9.1 11.2
Comparable adjusted EBITA** 123 134 -8% 236 232 2% 621
% of net sales 10.1 10.7 10.0 10.0 12.0
Profit before taxes 83 102 -18% 162 178 -9% 502
Earnings/share, EUR 0.11 0.13 0.21 0.22 0.65
Cash flow from operating activities -37 41 -2 -1 470
Net interest-bearing debt, end of period*** 746 642 333
Gross capital expenditure 54 232 306
Gearing 0.33 0.29 0.14
Solvency, % 40.5 41.7 44.4
Personnel, end of period 19 239 19 231 0% 19 294

*Items affecting comparability in the second quarter of 2019 included costs related primarily to restructuring programmes of EUR 17 million (12). During January-June, items affecting comparability amounted to EUR 28 million (15).
**Comparable adjusted EBITA excludes items affecting comparability and purchase price allocation amortisation.
***The increase in net interest-bearing debt is largely related to the inclusion of lease liabilities on the balance sheet, as a result of the new IFRS 16 standard.

As of the first quarter of 2019, Wärtsilä’s financial reporting has been amended to reflect its new organisational structure. The two business areas, Wärtsilä Marine Business and Wärtsilä Energy Business, constitute the reportable segments. Financial reporting for 2018 has been adjusted to reflect this change. Wärtsilä will additionally report the services related order intake and net sales for the two segments. In Wärtsilä Marine Business, order intake and net sales for retrofit scrubber projects have been transferred from services to new equipment. The comparison figures have been adjusted accordingly.

Wärtsilä presents certain alternative performance measures in accordance with the guidance issued by the European Securities and Markets Authority (ESMA). The definition of these alternative performance measures is presented in the calculations of financial ratios at the end of this report.


An analyst and press conference will be held today, Thursday 18 July 2019, at 10:00 a.m. Finnish time (8:00 a.m. UK time), at Wärtsilä Helsinki Campus, located at Hiililaiturinkuja 2, Helsinki, Finland. The combined web- and teleconference will be held in English and can be viewed by registering on: http://www.mediaserver.fi/live/wartsila.

To participate in the teleconference, please register at the following address: http://emea.directeventreg.com/registration/3683345. You will receive dial-in details by e-mail once you have registered. If problems occur, please press *0 for operator assistance. Please press *6 to mute your phone during the teleconference and to unmute.    

A recording of the webcast will be available on the company website later during the day.

For further information, please contact:

Arjen Berends
Executive Vice President & CFO
Tel: +358 10 709 5444

Natalia Valtasaari
Vice President, Investor Relations
Tel: +358 10 709 5637

For press information, please contact:

Atte Palomäki
Executive Vice President, Communications, Branding & Marketing
Tel: +358 10 709 5599

Wärtsilä in brief
Wärtsilä is a global leader in smart technologies and complete lifecycle solutions for the marine and energy markets. By emphasising sustainable innovation, total efficiency and data analytics, Wärtsilä maximises the environmental and economic performance of the vessels and power plants of its customers. In 2018, Wärtsilä’s net sales totalled EUR 5.2 billion with approximately 19,000 employees. The company has operations in over 200 locations in more than 80 countries around the world. Wärtsilä is listed on Nasdaq Helsinki.

Half year financial report 2019