Wärtsilä Corporation releases Interim Report January - June 2010

Thursday, Jul 22, 2010

STRONG SECOND QUARTER - CLEAR SIGNS OF MARKET RECOVERY

SECOND QUARTER HIGHLIGHTS

- Order intake increased 42% to EUR 1,117 million (785)

- Net sales decreased by 15% to EUR 1,131 million (1,333)

- Operating result decreased to EUR 117 million (155), 10.4% of net sales (11.7)

- Earnings per share amounted to 0.86 euro (1.06)

HIGHLIGHTS OF THE REVIEW PERIOD JANUARY-JUNE 2010

- Order intake EUR 1,998 million (1,743), an increase of 15%

- At the end of the period the order book totalled EUR 4,315 million (5,829), -26%

- Net sales decreased to EUR 2,052 million (2,574), -20%

- Operating result decreased to EUR 211 million (286), 10.3% of net sales (11.1)

- Earnings per share amounted to 1.53 euro (1.94)

- Cash flow from operating activities EUR 270 million (-72)

All numbers above are shown excluding nonrecurring items. Wärtsilä recognised EUR 12 million (6) of nonrecurring items related to restructuring measures during the second quarter and EUR 56 million (6) of nonrecurring items during the review period January-June 2010.

OLE JOHANSSON, PRESIDENT AND CEO:

"The second quarter of 2010 was strong for Wärtsilä in terms of ordering activity and it confirms clear signs of improvement in our operating environment. The recovery in the global economy is reflected in the contracting activity of the shipping industry where activity has clearly picked up during this year. The Power Plant markets have continued to be active and we closed several large contracts during the period. With the Services markets continuing to be stable, and following through restructuring measures to improve our efficiency and competitiveness globally, we reiterate our prospects for 2010."

WÄRTSILÄ'S PROSPECTS FOR 2010 REITERATED

Based on the current order book, a stable service business and proper adaptation of capacity we expect net sales to decline by 10-20 percent in 2010 and our operational profitability (EBIT% before nonrecurring items) to be between 9-10%, well within the upper end of our long-term target range.

ANALYST AND PRESS CONFERENCE AT 10.45 AM FINNISH TIME

An analyst and press conference will be held today, Wednesday 21 July 2010, at 10.45 a.m. Finnish time (8.45 a.m. UK time), at the Wärtsilä headquarters in Helsinki, Finland. The conference will be combined with a web- and teleconference which will be held in English and can be viewed on the internet at the following address:

http://storm.zoomvisionmamato.com/player/wartsila/objects/bw0j5r2z/

An on-demand version of the webcast will be available on the company website later the same day.

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 2009, Wärtsilä's net sales totalled EUR 5.3 billion with more than 18,000 employees. The company has operations in 160 locations in 70 countries around the world. Wärtsilä is listed on the NASDAQ OMX Helsinki, Finland.

Source: Wärtsilä