Despite the demise in global ship building[ds_preview] Wärtsilä managed to increase order intake by 2 % in the first 9 months to 3,6 mill. € compared with 3,5 mill. last year. Net sales decreased, however, by 6% to 3,2 mill. € (3,4 mill. €).
Wärtsilä revised its prospects on 12 October. It expects net sales to decline by around 5% and its profitability to be around 12% (11.5 % in 2015 based on a operating result of 330 mill. €.
»As anticipated, the concentration of deliveries towards the end of the year resulted in lower sales, which burdened our operating result,« said Jaakko Eskola, President and CEO at Wärtsilä.
In the equipment markets, the demand for new vessels was weak, reflecting the challenges related to overcapacity and low earnings. Nevertheless, improved sentiment in the power generation markets has contributed to the growth in overall order intake.
Despite the growth in order intake, lower than anticipated power plant deliveries in the current year has caused Wärtsilä to adjust our guidance for 2016, said Eskola.
Limited demand for new vessels
The outlook for the shipping and shipbuilding markets remains challenging. Overcapacity and weak earnings continue to limit the demand for new vessels in the merchant segment, while low oil prices are impacting investments in offshore exploration and development.
In the gas carrier markets, the demand for both LNG and LPG carriers remains under pressure due to the low oil and gas prices and supply-demand imbalances. The outlook for the cruise and ferry segment remains positive.
The service market outlook remains solid with growth opportunities in selected regions and segments. An increase in the installed base of medium-speed engines and propulsion equipment, as well as the shift to gas based technology, offsets the slower service demand for older installations and the uncertainty regarding short-term demand development in the merchant marine segment.
In the offshore segment, the growth in the installed base during recent years is expected to partially compensate for the challenging outlook in certain regions. The service outlook for gas-fuelled vessels remains favourable.
