The management of Wärtsilä will announce the growth estimate for 2008 and will specify the long term profitability target. Wärtsilä's net sales are estimated to increase by about 25 percent in 2008. This estimate is based on a strong order book, out of which approx. $4b will be delivered in 2008, and the continued strong development of the Services business. In 2008 the profitability will improve. To support this growth, Wärtsilä is planning to invest approx. $292 mduring 2008 in capacity expansion, process improvements and maintenance.
Wärtsilä also specifies its long term profitability target (EBIT%) that has previously been 8% over the cycle. The specified target is 8 - 10 percent, plus/minus 2 percent, of net sales over the cycle.
The short-term market forecast and profitability estimate published in the Q3 interim report are unchanged: Demand in the ship power and energy markets looks likely to remain active for Wärtsilä for the next two quarters. Based on the strong order book, Wärtsilä's net sales are expected to grow this year by around 15%.
Full year profitability will exceed 9%.
Currently contracting of ships is continuing on a high level and on short-term there are no signs of change in the activity. In some vessel types, for example in
offshore supply vessels, contracting has decreased during the last few months when new ships have entered into service.
On long-term it is estimated that contracting of large merchant ships will decrease from current high levels. The contracting of smaller vessels will also slightly decrease, but will remain relatively stable. In the offshore sector investments in new exploration and utilization of current fields are expected to continue.