Wärtsilä to cut jobs after fourth-quarter profit slump

Wärtsilä to cut jobs after fourth-quarter profit slumpImage courtesy of Wärtsilä

Finnish engine maker Wärtsilä is set to cut 1,200 jobs to profitability in the coming years, as its profit saw a decrease during the fourth quarter of 2018. 

The company noted that its orders reached a total value of €6.3 billion ($7.2 billion) which is 12 percent above the €5.6 billion in 2017.

During the fourth quarter, order intake rose 24 percent from €1.5 billion to €1.9 billion the company said in its report.

The Finnish LNG specialist said in a statement on Wednesday its order book at the end of the year increased 21 percent to €6.2 billion, compared to €5.1 billion in 2017.

Net sales reached €5.2 billion for the twelve months, 5 percent up on €4.9 billion in 2017.

Commenting on the results, Wärtsilä’s president and CEO Jaakko Eskola, said, “2018 was marked by positive order intake development resulting from improved demand in the marine newbuild and service markets.”

He added that the environmental considerations pushed the demand for exhaust gas cleaning systems up for Wärtsilä. The order intake was also boosted by the high level of activity in the cruise and ferry markets, Eskola said.

However, “despite the pick-up in services’ net sales toward the end of the year, the group sales mix favored equipment deliveries, which, together with increased costs related to research, development and digitalisation, burdened profitability.”

Adjusted operating profit for the twelve months remained flat, however, during the fourth quarter the company saw a 6 percent drop from €241 million in 2017 to €226 million in the fourth quarter of 2018.

As a result, the company has initiated a formal process to realign its operations and resources, which will see the company cut approximately 1,200 jobs in order to secure profitability in the future.

With these actions, Wärtsilä seeks annual savings of €100 million, the company said in a separate statement.

Share this article

Follow LNG World News

Posted on January 30, 2019 with tags .


<< Dec 2019 >>
25 26 27 28 29 30 1
2 3 4 5 6 7 8
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30 31 1 2 3 4 5

The 6th CWC China LNG & Gas International Exhibition & Summit

Following on from LNG 2019 and five successful editions in Beijing, the established China LNG & Gas International Exhibition & Summit…

read more >

LNG Pricing, Trading & Hedging: 3-Day Training Course – Singapore / Jan 2019

This three-day training program provides a unique opportunity to learn and apply the practical skills, knowledge and tools needed to:…

read more >

American LNG Forum 2020

The American LNG Forum is your gateway to learning about the US LNG export industry,

read more >

2nd Global LNG Forum

Global LNG Forum is an exclusive networking and knowledge-sharing platform for top experts and business leaders in the industry.

read more >