Wärtsilä Beats Market Expectations, Warns on Weak Marine Market

Photo: Wärtsilä

Jan 27 (Reuters) – Finnish ship technology and power plant maker Wartsila posted better-than-expected profits and new orders in the fourth quarter as demand for its power plants partly offset weak performance at its marine unit.

 Q4 order intake 1.32 billion euros ($1.41 billion) versus 1.29 billion euros in Reuters poll

 Q4 adjusted EBIT 253 million euros versus 232 million in poll, sales 1.56 million euros versus 1.52 million in poll

 Proposes 2016 dividend of 1.30 euros per share versus 1.27 euros in poll

 Warns the outlook will remain weak for its ship engines as low oil and gas prices as well as weak freight rates dampen demand for new merchant and offshore vessels

 “Although the outlook for the cruise and ferry segment is positive, the merchant, gas carrier, and offshore segments continue to suffer from overcapacity, slow trade growth and customers’ financial constraints”

 Says outlook is solid in services and energy solutions

 “I would have expected a more cautious outlook for the marine unit. But it just shows that Wartsila is supported by its versatility, now by growth in the energy business,” said Pekka Spolander, analyst at OP Equities, with a “hold” rating on the stock. ($1 = 0.9376 euros) (Reporting by Jussi Rosendahl and Tuomas Forsell; Editing by Keith Weir)

(c) Copyright Thomson Reuters 2017.

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