Wärtsilä Interim Report January – June 2010

Wärtsilä’s interim report January – June 2010 shows a strong second quarter with clear signs of market recovery.

Second quarter highlights:

• Order intake increased 42% to EUR1,117 million (785)
• Net sales decreased by 15% to EUR1,131 million (1,333)
• Operating result decreased to EUR117 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 EUR1,998 million (1,743), an increase of 15%
• At the end of the period, the order book totalled EUR4,315 million (5,829), -26%
• Net sales decreased to EUR2,052 million (2,574), -20%
• Operating result decreased to EUR211 million (286), 10.3% of net sales (11.1)
• Earnings per share amounted to 1.53 euro (1.94)
• Cash flow from operating activities EUR270 million (-72)

All numbers above are shown excluding nonrecurring items. Wärtsilä recognised EUR12 million (6) of nonrecurring items related to restructuring measures during the second quarter and EUR56 million (6) of nonrecurring items during the review period January – June 2010.

Ole Johansson, president and CEO of Wärtsilä, said: “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% 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

An analyst and press conference will be held today, Wednesday 21 July 2010, at 10.45am Finnish time (8.45am 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.

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