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WÄRTSILÄ DOWNGRADES FINANCIAL OUTLOOK TO 'SOFT'

Friday, July 19, 2019 

Reporting on the first half of 2019, Wärtsilä has identified a drop in demand for its services and solutions in the coming 12 months.

In Wärtsilä’s Marine Business, demand outlook has been downgraded to 'soft' from 'solid', due to lower vessel contracting volumes and an anticipated decline in the demand for scrubber solutions from last year’s exceptionally high level. Activity in the marine services market is expected to continue.

Jaakko Eskola (pictured), President and CEO, said: “While the first half of 2019 was generally marked by stable development in our net sales and profitability, our performance in the second quarter was burdened by fewer power plant deliveries, as well as an unfavourable project and equipment mix."

He continued: "Orders received in the Marine Business remained stable during the same period, as newbuild contracting has favoured the more specialised vessel segments. Nevertheless, uncertainty regarding fuel price development has slowed scrubber orders, which, in combination with concerns related to lower overall vessel contracting volumes, has prompted us to lower our marine demand outlook for the coming twelve months. In contrast to the softer demand trends in the equipment markets, I am pleased to note that the growth in services related sales has continued in both businesses throughout the second quarter.

"Looking beyond 2019, we are well placed to benefit from the demand for energy efficiency and the shift to low-carbon energy sources in both of our end-markets. We remain focused on improving operational efficiency and delivering increased lifecycle value to further strengthen our competitive position.”

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