Net sales increased by 4% to €1,007 mill in the quarter, compared to €967 mill in 1Q16. The comparable operating result increased to €86 mill in 1Q17 from €84, which represented 8.5% of net sales, compared with 8.7% in 1Q16. -
Cash flow from operating activities increased to €2 mill from a loss of €13 mill in 1Q16. The total order book at the end 1Q17 was reported as stable at €5,096 mill.
The overall demand for Wärtsilä's services and solutions in 2017 is expected to be relatively unchanged from the previous year, the group said.
Demand by business area is anticipated to be as follows:
*Solid in Services with growth opportunities in selected regions and segments.
*Good in Energy Solutions (previously solid), thanks to increasing electricity demand in the emerging markets and the global shift towards renewable energy sources, which will support the need for distributed, flexible, gas-fired power generation.
*Soft in Marine Solutions. Although the outlook for the cruise and ferry segment is positive, the merchant, gas carrier and offshore segments continue to suffer from overcapacity, slow trade growth, and the financial constraints of customers.
Wärtsilä's current order book for 2017 deliveries is €2,744 mill, which mainly comprises Marine Solutions' and Energy Solutions' deliveries. The company said that it will continue to focus on improving efficiency, which is expected to partially offset lower volumes in the marine markets.
The pricing environment in Energy Solutions' markets has stabilised, but the order book is still impacted by the competitive pressure seen in previous years. The good performance in Services is expected to continue.
Jaakko Eskola, president and CEO, said; "Wärtsilä's order intake development was clearly the highlight of the first quarter. Services' order intake was boosted by growing interest in long-term service agreements, while customers in the energy markets continued to invest in new power generation, both in the emerging markets and industrialised countries.
“Orders received in the Marine Solutions business were also at a reasonable level, thanks to continued activity in the cruise and FSRU markets. Although vessel contracting has remained low, signs of improving sentiment indicate a gradual recovery in demand towards the latter part of the year.
”The higher level of power plant deliveries supported both net sales development and our underlying performance in the first quarter. Looking ahead, we expect service activity to improve thanks to customers' maintenance schedules and the increased demand for long-term agreements in both of our end markets. This, together with the stabilised pricing environment in Energy Solutions, provides a good basis for the second half of 2017," he said.