In the Power Plants business, uncertainty in the financial markets may impact the timing of bigger projects.
The business environment for the shipping and shipbuilding industry remains challenging and concerns over the global economy continue to cause uncertainty. Despite increased scrapping of vessels, recovery of the freight market is being deterred by overcapacity in the traditional merchant markets. In addition, financing remains under pressure, especially for new merchant tonnage, as banks are cautious to finance projects without charter commitments.
Continued risks in the financial markets may have a negative impact on Services’ order intake. The challenging conditions in several marine market segments are also seen as a potential risk.
The annual report 2012 contains a more specific description of Wärtsilä’s risks and risk management.