Wärtsilä of Finland said its order intake increased 2% to €1,159 million in the second quarter of 2015, as compared to the same period last year.
The company’s net sales rose 10% to €1,230 million compared to €1,116 million in the same quarter in 2014, while the company’s order book for the first six months of this year jumped 20% to €5,325 million compared to €4,420 million in the same period in the previous year, the company revealed in a statement.
“The second quarter saw growth in both order intake and sales, and the market outlook remains positive. Profitability was 11.1% for the second quarter and 10.7% for the first half. In Energy Solutions, delayed decision-making in certain projects affected our order intake. The marine markets continue to suffer from weak vessel demand caused primarily by overcapacity, depressed freight rates, and low oil prices. Marine Solutions’ order intake was on a good level despite the challenging market conditions,” said Björn Rosengren, President and CEO of Wärtsilä.
Consequently, Wärtsilä revealed plans to realign its Marine Solutions organization. The realignment will mean the reduction of approximately 600 jobs. A portion of the reductions will be realized through retirements. Through this action, the company expects to realize annual savings in the region of €40 million.
The company expects net sales to grow by 5-10% and its operational profitability to be between 12.0-12.5%.
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LNG World News Staff; Image: Wärtsilä