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Financial targets

Wärtsilä's Board of Directors redefined Wärtsilä's long-term financial targets in January 2011. The new targets are shown below the old targets.

TargetDevelopment 2010 Graph
Net sales    

The average growth target for our annual sales is 6-7% over the cycle. The growth target for Ship Power and Power Plants businesses is 4% and for the Services business 10-15%.

New target: Our target is to grow faster than global GDP.

In 2010,  Wärtsilä's net sales decreased 13% to EUR 4,553 million. Wärtsilä's CAGR 1999-2010 was 8.3%.  

Our operating profit target (EBIT%) is 8-10% of net sales over the cycle with a range of +/- 2%.

New target: Our operating profit margin (EBIT%) target is 14% at the peak of the cycle. At the trough of the cycle, our target is to keep the operating profit margin above 10%.

In 2010, our operating profit was EUR 487 million, 10.7% of net sales.  
Capital structure    

Our solvency target is 35-40%.

New target: Our target is to maintain gearing below 50%.

In 2010, our solvency ratio was 40.8%.  

Our target is to pay a dividend equivalent to 50% of operating earnings.

New target: our target is to pay a dividend equivalent to 50% of earnings.

The Board of Directors proposes that a dividend of 1.75 euro per share and an extra dividend of 1.00 euro per share, totalling 2.75 euro per share, be paid for the financial year 2010.