President and CEO Ole Johansson at the Annual General Meeting: Wärtsilä's order intake and order book have strengthened

Wärtsilä Corporation, Stock exchange release, 21 March 2005 at 16:25 UTC+2

Demand in the ship power and power plant markets has continued to be good. Wärtsilä’s order intake in January and February totalled EUR 444.2 million, up 33% on the same period last year. For the Ship Power business, the order intake grew 28%, for the Power Plants business 82% and for Service 21%.
The order book stood at the record level of EUR 2,021.5 million at the end of February, an increase of 9% since the end of 2004.

Our forecast for the current year remains unchanged. Net sales of Wärtsilä’s Power Businesses will rise 10–15%. As we forecast at the beginning of February, profitability will vary sharply from quarter to quarter the first quarter being the weakest. The profitability target set for the Power Businesses will be reached by the end of the year. Wärtsilä adopted the new international financial reporting standards (IFRS) from the start of the year. Under IFRS, the comparable profitability target (EBITA) is above 8%.

The positive business climate will also be reflected in the number of employees this year. Personnel increases will mainly apply to the Group’s worldwide service activities. In Finland as well, a further 100 employees will be added to the company’s largest unit, Vaasa, where Wärtsilä has its research and development centre and an engine factory. The number of personnel working in Vaasa will increase to approximately 1,800.

Further information: Mr Raimo Lind, Executive Vice President, CFO, tel. +358 400 504 321 or Ms Eeva Kainulainen, VP, Corporate Communications, tel. +358 40 568 0591.