Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on WARTSILA OYJ ABP. We currently have 6 research reports from 1 professional analysts.
|29Nov16 01:15||GNW||Wärtsilä Corporation, Managers' transactions: Barbone, Pierpaolo|
|15Nov16 08:00||GNW||Wärtsilä Corporation, Managers' transactions: Barbone, Pierpaolo|
|08Nov16 09:00||GNW||Wärtsilä Corporation, Managers' transactions: Castrén, Päivi|
|07Nov16 01:00||GNW||Wärtsilä Corporation, Managers' transactions: Eskola, Jaakko-Veikko|
|07Nov16 09:30||GNW||Wärtsilä Corporation, Managers' transactions: Barbone, Pierpaolo|
|25Oct16 06:30||GNW||WÄRTSILÄ INTERIM REPORT JANUARY-SEPTEMBER 2016|
|12Oct16 03:15||GNW||Wärtsilä estimates net sales and profitability for 2016 to be lower than previously expected|
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WARTSILA OYJ ABP
WARTSILA OYJ ABP
FY16 guidance finally revised downward
26 Oct 16
Wärtsilä reported its Q3 16 results, which showed weak sales and margins leading to a warning for the FY16 targets. Orders were the only positive in this Q3 16 report, showing a +5% increase yoy at €1139m and reflecting an improvement in demand for Energy solutions and despite weaker demand for Marine solutions. Net sales decreased by 12% to €1,079m (versus €1,222m) including -27% yoy for Energy solutions and -13% yoy for Marine solutions. The operating result was €123m, corresponding to an 11.4% margin (versus €160m, or 13.1% of sales, in Q3 15) was impacted by lower volumes. EPS was €0.43 (versus €0.49 in Q3 15) and cash flow from operations was €189m (versus €-5m in Q3 15). The company revised its FY16 guidance and now expects its revenues to decline by c.5% (versus growth between 0% to +5%) and profitability at around 12% versus between 12.5% and 13%.
FY16 guidance now clearly at risk
20 Jul 16
Wärtsilä reported its Q2 16 results. Main facts: Order intake solid but a clear miss on the EBIT margin. > H1 16 revenues (€2,163m; -€55m lfl or -2% reported) > H1 16 operating result (€179m; -€58m lfl or -24% reported and -€31m at cc or -13%) > H1 16 cash flow from operations multiplied by 2.25x. > Q2 order intake was €1,194m vs €1,159m; +3% lfl > The comparable operating result reached €122m, or 10.2% of net sales (versus €137m, or 11.1%). The company confirmed it expects net sales to grow by 0-5%, and profitability to be 12.5-13.0%.
A low start to the year
21 Apr 16
Main facts: Q1 16 sales reached €967m, down 2% yoy and below market expectations of €1.07bn, as Energy Solutions decreased 27% yoy, while Marine was up 4% yoy and Services was up only 3% due to the challenging comparison basis. Q1 16 order intake declined 1% yoy to €1.27bn. Comparable operating result reached €84m, or 8.7% of sales (€100m or 10.1% in Q1 15). EPS was €0.30 (versus €0.43). 2016 outlook was unchanged as the company sees sales growth of 0-5%, and the EBIT margin ex-items at 12.5-13.0%. Wartsila is to restructure the Marine and Energy businesses and expects ~600 job cuts, seeking annual savings of ~€40m.
Mixed Q416 figures points to flat future
29 Jan 16
With revenue growth of 5%, Wärtsilä's top line reached €5.029m in 2015, while the order intake was €4.932m, -3% yoy including -22% for Energy Solutions and -8% for Marine Solutions, partly offset by a +33% increase in Services. This led to a Book-to bill ratio of 0.98x pointing to a flat outlook. The order book however increased by +8% to €4.882m. The operating result before non-recurring items was €612m corresponding to a 12.2% margin, up by 30bp from last year (11.9%). The EPS was €2.25 also up by 28% yoy. For the Q415 alone, orders decreased by 8%, with -27% in Energy solutions while Marine proved more resilient at +1% and Services posted +2% growth with the same pattern in Q415 revenues but, however, showing an overall a +3% increase yoy (-14% in Energy Solutions, +8% in Marine and +10% in Services) leading to a 13.5% operating profitability. In 2016, Wärtsilä expects its net sales to grow by 0-5% and its operating profitability (EBIT % before non-recurring items) to be 12.5-13%.
Demand continues to weaken, but strong margins so far
26 Oct 15
Wärtsilä reported a weak order intake for Q3 15 to €1,086m (-17% yoy), led by very soft demand in the power division at €167m (-56% yoy) citing increasing competition, while Marine solutions decreased 12% to €407m and services increased 10% to €511m, including a 5-year maintenance agreement with Teck Alaska Inc. for its power plant in Alaska. This led to a book-to-bill ratio below 1x at 0.89x. Revenues increased 9% to €1,222m (versus €1,117m), led by the aftermarket and the integration of L-3 Marine Systems while the EBITA margin reached €170m or 13.9% of sales, a satisfactory level in comparison with last year (€149m or 13.3%). This led to a €0.49 EPS (vs €0.43 last year). The cash flow from operating activities was €-5m (vs +68m in Q3 14) as increased receivables weigh. The company confirmed its FY15 guidance for sales to grow by 5-10% and EBIT to be 12-12.5%, while noting the competition in the power generation markets is increasing, and the current macro-economic uncertainty continues to cause delays in customer decision-making.
Weak demand leads to restructuring in ship power
17 Jul 15
Q2 15 figures are rather disappointing: order intake grew only 2% (-23% for Energy Solutions and +2% for Marine and +13% for Services) while revenue increased 10% to €1,230m leading to a book-to-bill ratio below 1x (0.94x). The EBIT margin was also a bit disappointing at 11.1% (vs 11.8% last year) although better than in Q1 15 (10.1% of sales). EPS was €0.54 vs €0.42 last year. Company reported that restructuring is pending in the Ship Power business to reflect the weak market situation: Wärtsilä seeks annual savings in the region of €40m, but the effect of the savings will materialise gradually beginning from Q3 15, and will take full effect by the end of 2016. The non-recurring costs related to the restructuring measures will be approximately €25-30m. The company updated its guidance to reflect the acquisition of L-3 Marine Systems International, which was finalised at the end of May and it now expect sales growth of 5-10% and profitability to be 12.0-12.5%. This represents no material change in the guidance as the contribution of L-3 represents c.5% growth on sales, with a slight dilution on margins.
Panmure Morning Note 30-11-2016
30 Nov 16
RPC, the international plastics products design and engineering group, has delivered yet another strong set of results (1H17 EBITDA +65%, EPS +45%). At the interim stage PBT was +66% (materially better than we had forecast). Topline growth has principally being driven by acquisitions (GCS + BPI), though organic remains a feature (and crucially remains at levels consistent with FY16). The two recent acquisitions have quickly been assimilated into the panEuropean platform and management has raised cost synergy guidance (again).
N+1 Singer - Morning Song 30-11-2016
30 Nov 16
Sanderson has delivered full year results in line with expectations and the 19 October trading update after a strong finish to the year compensated for a slower start. A healthy level of pre-contracted recurring revenue (50%), incremental sales to existing customers and new customer wins at higher average order values helped deliver solid revenue growth in both the Digital Retail (+9%) and Enterprise (+12%) divisions. A decent order book and good sales momentum suggest that the company is on track to deliver on unchanged profit expectations for the current year. We continue to view the valuation (FY17 EV/EBITDA 8.6x) as undemanding given an attractive combination of accelerating growth potential, strong cash generation and growing dividends.
Panmure Morning Note 02-12-16
02 Dec 16
Today James Halstead will be holding its 101st AGM. Trading during the first part of FY17 has been mixed, with some notable challenges. However, movements in FX (i.e. weak sterling) is boosting reported earnings, offsetting UK volume trends and pricing pressures. Whilst earnings are likely to be second half weighted, the picture is in-line with expectations and we are leaving our FY17 PBT estimates unchanged (£47.4m in FY17 vs £45.4m FY16).
06 Dec 16
600 Group* (SIXH): Interim results: order book showing signs of improvement (CORP) | Real Good Food* (RGD): Commodity volatility impacts numbers (CORP) | Minds + Machines* (MMX): .vip goes live in China (CORP | Imaginatik* (IMTK): Interims (CORP) | iomart* (IOM): Quality business as usual (CORP) | Fulcrum (FCRM): Upgrades continue (BUY)
02 Dec 16
On 30 September 2016, when the company announced its full year results, it reported that the UK business had seen a slow start to the year, with particular weakness in repair and renewal spending by the NHS as well as “reticence” in the education sector. However, with the UK only representing about a third of the business, this weakness was expected to be more than offset by the positive effect of a weakened sterling on its overseas business, given the benefits for competitiveness and margins.