Wärtsilä Corporation’s (OMX: WRT1V) order intake was quite strong at over 1.1 billion Euros during Q1 2012, a 13% improvement vs. last year. Sales decreased seven percent to just over a billion while operating result on a 10% margin just toppled 100 million. Earnings per share were 33 cents and cash flow positive at 28 million.
President & CEO Björn Rosengren says that the company is well on its way to meeting annual targets. Sales were lower due to less Power Plants and Ship Power deliveries on Q1 whereas Services net sales were up by 12%. Wärtsilä said that Hamworthy integration is going according to plan and the aim is to double Hamworthy’s net sales in five years.
The power generation market is expected to remain on a good level this year as emerging markets make further capacity investments. Wärtsilä also feels that there is pent-up demand in OECD countries mainly stemming from CO2 emission cut demands and renovations of old plant.
Vessel contracting activity is mixed with expectations at r just below 2011 levels overall. While the activity in bulk carries, container vessels and tankers is expected to remain slow, LNG carrier segment demand should be robust. Offshore segment is an interesting opportunity.
Wärtsilä says that some challenges remain but the company is confident to expects 5-10% net salesgrowth and EBIT% before non-recurring items of 10-11%. The stock opened with a small minus but has since reversed course and is up by 3.5% midway through Friday session.
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