The Finnish company Wärtsilä has finished the year 2016 wit an operating result of 583 mill. € compared to 612 mill. € in 2015.
The profit before taxes dropped from 553 mill. € to 479 mill €. The order intake was nearly constant by 4,927 (2016: 4,932). »The 2016 was a satisfactor[ds_preview]y year, considering the continued challenges in our end markets. Thanks to a good fourth quarter highlighted by successful delivery execution, growth in Services’ revenues, and an improved project mix, we were able to meet our revised net sales and profitability targets for the year,« said Jaakko Eskola, President and CEO.
According to him Wärtsiläs services business have presented 46 % of net sales in 2016. That would be a good foundation for achieving a long-term target of profitable growth. »Despite the headwinds we faced in the offshore segment, where weak market conditions caused customers to postpone equipment maintenance, our Services business performance continued to be resilient. Our growing installed base of medium-speed engines and propulsion equipment, as well as the shift to gas based technology, supports our long-term ambitions«, Eskola adds.
In the marine markets, contracting activity fell to an exceptionally low level the company stated. The majority of the volume decline was seen in the shipping industry, where overcapacity and low earnings remain the key challenges. Low oil prices and reduced capital expenditures from oil companies continued to limit demand also in the offshore industry the President and CEO informs.
No relevant changes expected for 2017
In order to secure the position in sustainable innovation, Wärtsilä has continuously to look into new ways of developing their business. The digital transformation is important in this contex, Eskola mentions. »Looking into 2017, we expect our business environment to remain largely unchanged«, he expects for this year.
