Wärtsilä Posts 1Q Loss, But Outlook For Year Good

Thursday, May 03, 2001
Wärtsilä posted a first-quarter loss, hit by restructuring charges, but said it expected full-year results at its key power divisions to reach last year's level. Wärtsilä reported a January-March loss before extraordinary items of $3.92 million versus a profit a year ago. The result sent Wärtsilä's shares 5.2 percent lower to 23.60 euros in thin opening trade on a flat Helsinki bourse. The stock is eight percent below its year high of 25.65 euros. Wärtsilä booked a 30-million-euro restructuring provision to improve operations at its engine-building divisions, but said it would absorb that charge in the rest of the year, leaving operating results for the divisions on par with 2000. Despite the first-quarter loss, Chief Executive Ole Johansson said the performance of ongoing operations had improved, and steps, including job cuts, were being taken to continue boosting efficiency at the core divisions. "We will be able to absorb the 30-million-euro provision in our full-year profit, so in that respect the market should not be disappointed," Johansson said. "If you look at the power divisions' operating profit margin, before this provision we have an EBIT margin of 4.7 percent, which is better than we had on average last year," he said. In 2000 the power divisions, which accounted for 92 percent of net sales of ongoing operations, had a full-year operating profit margin of 3.8 percent of net sales. Given the good order book, the growing service business, and the currently favorable outlook, net sales of the power divisions in 2001 will increase. But Johansson said that the outlook for Wärtsilä's Imatra Steel division, which makes specialty steels, was more uncertain due to weak prices.

Johansson: Marine Business Will Be Strong

Finland's Wartsila is optimistic about the outlook for its key marine engine and distributed power business, the group's head said after the company posted a three-month loss due to restructuring charges. "I'm pretty optimistic about the situation in the marine market -- shipbuilding orderbooks have continued to increase over the past months, and this is of course good news for us in the long term," Chief Executive Ole Johansson said. "I am also optimistic about the distributed power generation business, and especially about the developments in North and South America," Johansson said, noting that the share of gas power plants in Wartsila's business portfolio had grown. - (Reuters)

Maritime Reporter October 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Marine Propulsion

Sea Star Line: Equipment Replacement Plan on Track

Company Receives New Refrigerated Containers and Places Order for New Genset Equipment   Sea Star Line, LLC began receiving the first of its new 100 40’ and 45’

MacGregor's Hatlapa Brand is 95 Today

November 2014 marks the 95th anniversary of MacGregor's Hatlapa brand. Since its foundation in 1919 by German engineer Max Hatlapa, the formerly independent Uetersen-based

Pair of ASD Tugboats Delivered to Keppel-Smit

The ASD tugs KST Passion and KST Pride were were delivered to their owner, Keppel-Smit Towage Pte. Ltd of Singapore in October 2014. The two vessels are the first

 
 
Maritime Security Maritime Standards Naval Architecture Offshore Oil Pipelines Port Authority Salvage Ship Repair Ship Simulators Sonar
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1950 sec (5 req/sec)