Finland: Wartsila Aims at 3-5% Net Sales Growth in 2011. President, CEO Ole Johansson to Retire

The President and CEO of Wärtsilä Corporation, Mr Ole Johansson, has decided to retire after turning 60 years of age in June, using the right stipulated in his executive contract.

The exact timing of his retirement will be announced later. Also, Mr Johansson will not be available to continue in his position as a member of the Wärtsilä Board of Directors. Wärtsilä’s Board of Directors has started the process to appoint a successor for Mr Johansson.

Ole Johansson has worked in various managerial positions in Wärtsilä since 1975, and as the President and CEO since 2000.

FOURTH QUARTER HIGHLIGHTS

– Order intake EUR 1,003 million (823), +22%

– Net sales EUR 1,462 million (1,519), -4%

– Operating result EUR 159 million (219), 10.9% of net sales (14.4)

– Earnings per share 0.99 euro (1.48)

– Cash flow from operating activities EUR 171 million (207)

HIGHLIGHTS OF THE REVIEW PERIOD JANUARY-DECEMBER 2010

– Order intake EUR 4,005 million (3,291), +22%

– At the end of the period the order book totalled EUR 3,795 million (4,491), -16%

– Net sales EUR 4,553 million (5,260), -13%

– Operating result EUR 487 million (638), 10.7% of net sales (12.1)

– Earnings per share 3.35 euro (4.30)

– All time high cash flow from operating activities EUR 663 million (349)

– Dividend proposal 1.75 euro/share and extra dividend 1.00 euro/share, total 2.75 euro/share

All numbers above are shown excluding nonrecurring items and selling profits from assets available for sale. Wärtsilä recognised EUR 16 million (40) of nonrecurring items related to restructuring measures during the fourth quarter and a selling profit of EUR 117 million from the divestment of its Assa Abloy holding. Wärtsilä recognised EUR 75 million (46) of nonrecurring restructuring items and selling profits of EUR 149 million from the divestment shares during the review period January-December 2010.

OLE JOHANSSON, PRESIDENT AND CEO:

“The year 2010 was a year of restructuring and recovery. The ordering of new ships started to pick up earlier than expected, and the orders for Wärtsilä Ship Power more than doubled compared to 2009. The activity in our Power Plants and Services divisions has remained high. As a consequence, our order intake grew 22%. Net sales developed as expected and fell by 13 percent to EUR 4,553 million, while profitability remained at a good 10.7% level. In 2011 we should again see some growth in sales, and profitability is expected to improve slightly. For the longer term, we believe that the new leaner organisation, our solid position in the markets and our efficient services organisation should enable operating margins of up to 14 percent.”

WÄRTSILÄ’S PROSPECTS FOR 2011

Wärtsilä expects its net sales for 2011 to grow 3-5% and operational profitability (EBIT% before nonrecurring items) to be around 11%.

(offshoreenergytoday)

[mappress]

Source: offshoreenergytoday, January 28, 2011

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