Wartsila, a Finnish industrial engine maker, reported its higher quarterly earnings despite a sluggish demand for ship technology. According to the reports released on Wednesday, it forecasted improved margins this year, hoping growth in services.
Chief Executive Jaakko Eskola said: “While low crude prices continued to curb demand for new offshore drilling vessels the outlook was brighter for the company’s services and power plant businesses.” He added that “On the power plant side, we are seeing good activity in the United States, Mexico and Africa,”
The company anticipated its 2016 sales to be at worst unchanged to five percent higher and that adjusted operating margins would be in the range of 12.5-13.0 percent, up from a margin of 12.2 percent in 2015.
Eskola said: “Offshore is totally down. Containers were okay last year but this year they will be more challenging. In some segments, like bulk carriers, nothing is happening, the oversupply is huge.” He also mentioned that the company was on the look for acquisitions.
Shares in the company rose 1.4 percent by 1111 GMT. The company issued a dividend of 1.15 euros in 2014 which raised to 1.20 in the year 2015.