Wartsila Misses Expectation, Eyes Rolls-Royce Unit

747

A slow demand in the marine market has led to the formation of a new bond between Wartsila and Rolls-Royce. The Finnish ship technology and power plant maker Wartsila missed its first-quarter earnings expectations on Tuesday, April 24  and now it eyes Rolls-Royce acquisitions, says a report published in Reuters.

In a phone interview following the quarterly report, Chief Executive Jaakko Eskola said Wartsila aimed to grow through acquisitions and that it continued to look at Rolls-Royce’s marine business, which the British company is reviewing for a possible sale.

Overcapacity & Slow Recovery

Wartsila said the marine sector, which has been hit by overcapacity and lack of financing, was recovering, but not at the pace the company had anticipated.

“We are seeing that this geopolitical uncertainty impacts customers’ decision-making … merchant and offshore segments’ activity is not growing as we had thought,” Eskola said.

“It is a concern. Talks about trade war … they create uncertainty and make customers consider purchases a little longer.”

First-quarter earnings before interest, taxes and amortisation (EBITA) rose by 9 percent to 98 million euros ($120 million), but fell short of the 118 million euros expected by analysts in a Reuters poll.

Did you subscribe for our daily newsletter?

It’s Free! Click here to Subscribe!

Source: Reuters

LEAVE A REPLY

This site uses Akismet to reduce spam. Learn how your comment data is processed.