The Finnish shipping giant is facing issues lately. The company shares have dropped 4% by 0920 GMT after second-quarter core profit fell flat. The shares took a dip from a year ago at 123 million euros, way below the 147 million euros as expected by analysts in a Reuters poll, says a report published by NASDAQ.
Postponed Projects
Wartsila announced this missed profit expectations on Thursday, citing postponed energy projects, but new orders beat forecasts with the help of rising demand for its marine sulphur scrubbers.
Improved Outlook
“As we deliver large power plants, it is typical … We had expected some large deliveries to take place during the quarter, but they were moved to the next one,” CEO Jaakko Eskola told Reuters.
He said the outlook for its marine business had improved somewhat due to a pick-up in global shipbuilding.
The Scrubbers Benefit
“The momentum is this year and next year … it is not a huge business for us, but nice extra,” he said, adding that Wartsila was the market leader in the segment, ahead of Sweden’sAlfa Laval.
Wartsila is also benefiting from maritime emission reduction demands by 2020 that are boosting demand for its so-called sulphur scrubbers.
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Source: Reuters
