World News
Wärtsilä says Marine Markets "Remain Challenging" as Orders Drop in Third Quarter
The third quarter of 2015 saw order intake for Wärtsilä Corporation fall by 17 percent, even as net sales rose 9 per cent, the company announced in its interim financial results.
Order intake fell to €1.1 billion ($1.2 billion) from €1.3 billion ($1.4 billion) this time last year, while net sales rose to €1.2 billion ($1.3 billion), largely due to "aftermarket activities" and a recent acquisition of L-3 Marine Systems International (MSI).
"The Marine Solutions markets remain challenging," said CEO Björn Rosengren.
"Low vessel contracting volumes, together with weak sentiment in the offshore segment, is impacting our order intake."
Other parts of the business, however, have reportedly picked up the slack.
"I am pleased to note that our Services business is compensating well for the lower demand in our equipment markets," he said.
"Improved maintenance demand from marine customers and stability within power plant service indicates a positive outlook for the rest of this year."
He added that Wärtsilä continues to be well positioned to take advantage of the trend towards higher efficiency with fewer emissions.
Net sales for 2015 are expected to grow 5-10 percent overall, with the company reportedly on track to achieve its 2015 guidance.
Earlier this year, Wärtsilä also announced that the "sluggish" market had led it to lay off 600 employees in it ship power business.
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