Net sales of Wärtsilä's Power Businesses will grow approx. 15%, profitability around 8% this year

Wärtsilä Corporation, Stock exchange release, 31 May 2005 at 09:15 UTC+2

Net sales of Wärtsilä’s Power Businesses for the current year are estimated to grow by approximately 15% compared to net sales in 2004, which was EUR 2,224.7 million. Regardless of the fluctuations between the individual quarters the full-year operating margin (EBITA) of the Power Businesses is expected to be around 8% (5.7)1) and to slightly improve in 2006. The net sales in 2006 are estimated to increase by about 10% based on the current strong order book and lively market activity.

Wärtsilä’s order intake in April and May rose by approximately 17% compared to the same months last year, i.e. to EUR 443 million (380). For the Ship Power business the order intake was about EUR 214 million (130), for the Power Plants business roughly EUR 50 million (112), and for the Service business EUR 179 million (138). The order intake for the whole of 2004 was EUR 2,791.4 million.

From 1 May 2005 Imatra Steel will be consolidated as an associated company.

1) The IFRS operating margin (EBITA) of 5.7% for the Power Businesses in 2004 does not include one-time items; these were restructuring provisions and disability pension liabilities arising from a change in calculation principles.

For further information please contact Mr Raimo Lind, Executive Vice President & CFO, tel. +358 10 709 5640.