Rosengren News

ABB flagged a slowdown in revenue growth in the fourth quarter and reported a continued decline in orders in China, sending its shares lower even as the Swiss engineering group posted third-quarter earnings broadly in line with forecasts.The maker of industrial drives and motors noted some signs of stabilisation in China, its second-largest market and said higher quarterly revenues and earnings were boosted by price increases outstripping cost inflation, and higher volumes.But…

ABB announced its intention to spin off Accelleron (formerly ABB Turbocharging) turbocharging division, by way of a dividend in kind of Accelleron Industries Ltd’s shares to ABB’s shareholders. Accelleron’s listing on SIX Swiss Exchange in Zurich is planned for October 3, 2022, and is subject to, among others, approval by ABB’s shareholders at an Extraordinary General Meeting scheduled for September 7, 2022.“After careful consideration involving a dual-track process, we have concluded that spinning off Accelleron is the best way forward – for Accelleron itself and for ABB’s shareholders…

ABB expects supply chain bottlenecks to ease during 2022, the Swiss engineering group said on Thursday, after shortages of semiconductors hurt its ability to deliver increasing orders during the fourth quarter.The maker of fast chargers for electric vehicles and industrial drives for factories reported a 21% jump in orders as demand surged from machine builders, food manufacturers and general industry.But revenues grew by only 8% as ABB battled shortages of key components such as semiconductor chips that have hit the rest of industry.

ABB’s new Chief Executive Bjorn Rosengren is determined to decentralize the Swiss engineering group to improve its performance, he told Swiss newspaper Neue Zuercher Zeitung in an interview.The company, whose products range from circuit breakers to electric motors for ships, has been weighed down by a business model that was too complicated, said the former Sandvik boss who took over in March.“I do intend to further decentralise,” he said in the interview to be published on Saturday.“Up to now we have only ever talked about four businesses…

At Norshipping in Oslo, Wärtsilä introduced the Wärtsilä 31, self-described by the company as a transcendent power plant in terms of fuel efficiency and economy, a claim validated by the Guinness World Records which has stamped it as the most efficient four-stroke diesel engine in the world. Björn Rosengren, President and CEO of Wärtsilä, sat with Maritime Reporter to lend perspective and insight to this development and the maritime market as a whole. Wärtsilä President & CEO Björn Rosengren was beaming at the introduction of the Wärtsilä 31 to the world at last month’s Norshipping…

Björn Rosengren, President and CEO of Wärtsilä Corporation and Micky Arison, Chairman of the Board of Carnival Corporation & plc are pleased about deepening the cooperation to support sustainable and environmentally friendly cruises. Wärtsilä and Carnival Corporation & plc have partnered to optimize engine room operations aboard the company's fleet of 101 ships across its nine global brands. Wärtsilä said the partnership will see its solutions tested in pilot projects on several of Carnival Corporation's vessels.

CEO cautious on 2015 outlook. Finnish ship engine and power plant maker Wartsila reported a smaller-than-expected quarterly profit and warned lower crude prices were likely to curb oil firms' demand for vessels. Shares in Wartsila dropped 2.1 percent to 40.15 euros by 0941 GMT after it said fourth-quarter adjusted operating profit fell 7 percent year-on-year to 196 million euros ($222 million), below analysts' mean forecast of 209 million in a Reuters poll. Chief executive Bjorn Rosengren said the market outlook was uncertain. "We are taking a cautious look forward ... With the low oil price, it's easy to anticipate that it will have some kind of effect on our offshore business," he told Reuters.

Wärtsilä announced its third quarter results, reporting that it sees good development in order intake and profitability. Wärtsilä estimates its profitability for 2014 (EBIT% before non-recurring items) to be 11.5-12%. Previously profitability was expected to be around 11.5%. Wärtsilä reiterated that its expectation that net sales will grow by around 5%. Bjӧrn Rosengren, president and CEO, said, "The third quarter was characterized by the strong development in order intake. In the power generation markets customers are gradually beginning to commit to investments. The improved activity levels especially for smaller orders, combined with the 139 MW order we received from Mexico and the 112 MW order from North Dakota, resulted in a 47% increase in Power Plants' order intake.

Wärtsilä is a global leader in complete lifecycle power solutions for the marine and energy markets. Wärtsilä operates from more than 200 locations in nearly 70 countries around the world. The company’s net sales totaled $6.4 billion in 2013. By emphasizing technological innovation and efficiency, Wärtsilä maximizes environmental and economic performance. The company is a leader in dual fuel marine engines and is on the forefront of this technology, here and overseas. Wärtsila…

SMM was another full success. With more than 2,100 exhibitors from all around the world, including 150 first-timers, with 50,000 industry visitors and roughly 90,000 square metres of exhibition space, SMM has demonstrated once again what it means to be the leading international trade fair of the maritime industry. After four days brimming with activity, the 26th SMM came to a close today. "We set new records this year," said Bernd Aufderheide, CEO and President of Hamburg Messe und Congress GmbH. "The excellent turnout not only showed that companies are ready to meet the current challenges with determination, but it also revealed a growing appreciation for collaboration," he added.

Mr Rakesh Sarin (59), B.Sc. (Eng.), has been appointed President of Power Plants, Executive Vice President and member of the Board of Management of Wärtsilä Corporation, effective 1 September 2014. In this position, he is responsible for Wärtsilä's Power Plants business globally, and will report to President & CEO Mr Björn Rosengren. Mr Sarin joined Wärtsilä in 1998 with a background in downstream oil & gas sector. During the past 16 years he has held several managerial positions in Wärtsilä, including Vice President for sales & marketing of Power Plants globally based out of Helsinki. Since 2008 Mr Sarin has held a dual role as Vice President for Power Plants sales in Middle East, Asia and Australia, and Managing Director for Wärtsilä India. Mr Vesa Riihimäki (48), M.Sc.

Wärtsilä and China State Shipbuilding Corporation announced the establishment of a joint venture, which will take over Wärtsilä's two-stroke engine business. Going forward, the two-stroke engine business will be reported as discontinued operations. Wärtsilä and China State Shipbuilding Corporation announced the establishment of a joint venture for manufacturing medium and large bore medium-speed diesel and dual-fuel engines. Wärtsilä estimates its profitability for 2014 (EBIT% before non-recurring items) to be around 11.5%, due to the two-stroke business transaction. Net sales are expected to grow by around 5%. Previously Wärtsilä expected its net sales to grow by 0-10% and its operational profitability (EBIT% before non-recurring items) to be around 11%.

In its interim financial report January to March 2014 Wärtsilä notes healthy development in ship power and services offsetting challenges in power generation markets. "In line with our expectations, first quarter net sales developed well with profitability at 8.9%. Favourable development was also seen in the operating cash flow. The power plant markets remain challenging with customers continuing to delay decision-making due to global economic uncertainty and emerging market currency fluctuations. However, activity in the marine market was at a healthy level and Ship Power performed well, which partly offset the current challenges within the power generation markets.

The U.S. continues to lead the push towards "LNG as Fuel" in the commercial shipping sector, as these 'historic' announcements are now becoming more routine. Totem Ocean Trailer Express (Totem Ocean) announced that Wärtsilä will supply main engines, generators and integrated LNG storage and fuel gas handling systems (LNGPac(TM)) for the largest LNG conversions ever undertaken in North America. In making this decision John Parrott, President of Totem Ocean, cited Wärtsilä's proven technology as a deciding factor in selecting the company.

"For Wärtsilä, 2013 was a year of varying activity within our different end markets. While the improvement in global vessel contracting was significant, power generation markets declined for the second consecutive year. Unfavourable exchange rates and some delayed deliveries at the end of the year led to a slightly weaker than expected net sales development. Profitability on the other hand developed well, reaching 11.2% for the full year. I am pleased with the resilience we have shown in reaching our profitability targets, despite the lower level of sales.

The Group-wide efficiency programme is expected to lead to a reduction of approximately 1,000 employees globally, of which about 200 are planned to be in Finland, in a move to secure future profitability and competitiveness. Wärtsilä add that the reductions will impact all businesses and support functions. The company explains that despite some signs of improvement in market conditions, the business environment remains challenging. Vessel contracting activity is expected to remain at improved levels, but overcapacity and price pressure is still a concern.

"Our operations developed in line with our expectations during the third quarter. Net sales grew by 11% to EUR 1,209 million and profitability was 11.4%. With better visibility on net sales development, we specify our sales growth guidance to 0-5%, while our profitability estimate remains unchanged at around 11%," commented Björn Rosengren, President and CEO. Rosengren continued: "Uncertainties in the global economy and fluctuations in emerging market currencies have caused power plant customers to delay decision-making, which has impacted our overall order intake development.

More than 250 top-level delegates attended trade association Interferry’s 38th annual conference in Malta to debate the major factors affecting ferry operations around the world. Under a new format mixing presentations with panel discussions and audience input, the event underlined the diversity of political, technical, operational and commercial issues challenging the industry. Among several sessions focused on safety, a former airline pilot confirmed the alarming certainty of human error…

Wärtsilä will set up a new fully-owned manufacturing facility in Brazil to meet the increasing market demand, particularly in the offshore market. Wärtsilä's investment in the new facilities is approximately EUR 20 million. The manufacturing premises will be based on a multi-product factory concept for the assembly and testing of Wärtsilä generating sets and propulsion products. In the initial phase, activities will focus on medium sized, medium speed generating sets and steerable thrusters, with the possibility to flexibly expand the product range to respond to market needs.

Wärtsilä Corporation releases its January to March 2013 interim financial report. "The beginning of 2013 developed according to our expectations. Order intake grew by 22%, thanks to good development in both Power Plants and Ship Power, especially in the offshore segment. First quarter net sales and profitability were impacted by the anticipated low level of deliveries, mainly due to timing of projects. Interest in natural gas based power generation continued and Power Plants received significant orders from Jordan and USA. In Ship Power, the offshore and specialised vessel markets remained robust. Strategically important orders were received for exhaust gas cleaning systems, and for comprehensive solutions packages from the offshore industry.

Wärtsilä Yuchai Engine Co., Ltd, the joint venture owned 50/50 by Wärtsilä and Yuchai Marine Power Co. Ltd., has begun construction of its new production facilities with a groundbreaking ceremony in  Zhuhai City, Guangdong Province of China. The agreement to establish the joint venture was signed in December 2012. The company will manufacture medium-speed marine engines to serve the increasingly dominant Chinese shipbuilding industry. The products to be manufactured by the joint venture company will include the Wärtsilä 20, Wärtsilä 26 and Wärtsilä 32 series of medium speed engines. Production is planned to start in 2014. "Today marks an important step towards our goal to serve our customers in the Chinese shipbuilding market in the best possible way.

"The second quarter development was reasonable considering the current economic situation, with net sales increasing by 5% and profitability at 9.6%. We continue to work towards reaching this year's growth and profitability targets. Marine markets are showing some signs of improvement, with the offshore and specialised vessel segments continuing to be active. Furthermore, competitive new building prices and the increased fuel efficiency of modern vessels are attracting investments in the merchant segment. Overall order intake levels were lower than in the previous year, especially in Power Plants where we are experiencing delays in customer decision-making. We have seen some recovery in the service markets, which was reflected in the Services' net sales increase of 4%.

A ferry operator’s experience of ‘the fastest ship in the world’ will feature among the cutting-edge initiatives being aired at Interferry’s 38th annual conference in Malta from October 5-9. The trade association event gives South American operator Buquebus a first opportunity to showcase the commercial and technical benefits of its revolutionary newbuild Francisco. Delivered in August from Australian builder Incat Tasmania, the catamaran is the world’s first high speed dual fuel ro-ro to use LNG as its primary fuel. Incat made the “fastest ship” claim after sea trials in June.