Wartsila 2008: A Record Breaking Year - net Sales Grew 23% to EUR 4,612 Million, Profitability Improved to all Time High 11.4%



    HELSINKI, Jan. 30 /CNW/ -

    Ole Johansson, President and CEO:

    "The year 2008 will go down in history as a year of contrasts for
Wartsila. On one hand it was another record year; net sales grew by more than
23% and the profitability also improved clearly. The order intake was brisk in
the beginning of the year and by the end of June the order book reached a
level of 7.5 billion euros. On the other hand, the global financial and
economic crisis created uncertainty in Wartsila's main markets. As a result
order intake, particularly in our Ship Power sector, slowed down markedly
during the second half of the year and there was an increase in order
cancellations. During the review period cancellations of EUR 333 million
materialised and we see an additional EUR 800 million at risk. The power
plants markets continued to be active throughout the year and orders were
signed even at the very end of the year. While it is difficult to foresee the
extent and duration of the downturn, the effect on our activities should, at
least during the current year, be limited. We look at 2009 with confidence.
The substantial order book at the end of the year should support net sales
growing 10-20% in 2009 even with the risk of cancellations, which would
maintain the profitability at last year's good level."

    
    Review Period January-December 2008 in Brief


    MEUR                          1-12/2008   1-12/2007   Change

    Order intake                      5 573       5 633      -1%
    Order book at the end of the
     period                           6 883(*))   6 308       9%
    Net sales                         4 612       3 763      23%
    Operating result                    525         380      38%
    % of net sales                    11.4%        10.1%
    Profit before taxes                 516         372      39%
    Earnings/share, EUR                3.88 1)     2.74
    Cash flow from operating
     activities                         278         431
    Interest-bearing net debt
     at the end of the period           455         -27
    Gross capital expenditure           366         231

    1)   3.96 euros before the effect of the combination of Wartsila's share
         series.

    (*)) Cancellations amounting to EUR 333 million and the order book of Bio
         Power amounting to EUR 116 million have been eliminated from the
         order book. Additions relating to acquisitions and other adjustments
         amounted to EUR 158 million.
    

    Wartsila's Prospects for 2009

    Despite the risk of cancellations, the substantial order book at the end
of the year should support a 10-20 percent growth in net sales for 2009. On
the same basis, profitability will be at last year's good level.

    The complete financial statement release can be found at :
http://www.wartsila.com/,en,press,0,,2900555D-410D-4873-A25E-1656239191EA
,,,.htm (Due to the length of this URL, it may be necessary to copy and paste
this hyperlink into your Internet browser's URL address field. Remove the
space if one exists.)

    Analyst and Press Conference

    An analyst and press conference was held on Friday 30 January 2009, at
10.45 a.m. Finnish time (8.45 a.m. UK time), at the Wartsila headquarters in
Helsinki, Finland.

    An on-demand version of the webcast will be available later today at
http://www.wartsila.com.

    Wartsila Corporation

    Wartsila enhances the business of its customers by providing them with
complete lifecycle power solutions. When creating better and environmentally
compatible technologies, Wartsila focuses on the marine and energy markets
with products and solutions as well as services. Through innovative products
and services, Wartsila sets out to be the most valued business partner of all
its customers. This is achieved by the dedication of close to 19,000
professionals manning 160 locations in close to 70 countries around the world.




For further information:

For further information: Tuula Franck, tel. +358-400-267555

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Wärtsilä Corporation

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