Wartsila said the order intake for its marine business by 20% to EUR1.29bn compared to EUR1.6bn a year earlier. However, it saw a sharper decline in new orders in the fourth quarter of 2016 down 45% at EUR258m compared to EUR465m in the corresponding period a year earlier.
“The weak growth in seaborne trade, low oil and gas prices, as well as customers’ financial constraints burdened the marine industry throughout the year, which resulted in exceptionally low contracting activity,” commented Jaakko Eskola ceo of Wartsila.
The Finnish company was able to largely retain its market share with a 51% share in the medium-speed engine market in the fourth quarter compared to 50% in the previous quarter, while its share in auxillary engines was 18% in the fourth quarter compared to 16% in the preceding quarter.
Overall its marine solutions business orderbook declined by 21% year-on-year to EUR2.02bn.
Wartsila is cutting 550 jobs mainly related to engines and R&D in Finland, a process it said was proceeding as planned.
“Wartsila’s aim is to continuously pursue more cost efficient ways of operating and align its operation to market conditions. In this context, local actions in the marine solutions business are expected to result in additional savings of approximately EUR45m,” it said.
Looking ahead the company expects the marine business to remain soft in 2017. “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 customers’ financial constraints,” it said.
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