Björn Rosengren, President and CEO
“Wärtsilä performed well in 2014, a year characterised by challenging market conditions. Net sales and profitability developed in line with our expectations. Net sales grew by 4% to EUR 4,779 million (4,607), largely due to a strong fourth quarter. Profitability reached 11.9% (12.1), with the development in Services and Ship Power performance and the restructuring measures introduced in January compensating for the effect of lower Power Plants’ sales.
Although overall vessel contracting slowed during 2014, the robust ordering of gas carriers and the continued demand for specialised tonnage resulted in good ordering activity for Ship Power. In the power generation markets, activity among our customers increased significantly during the second half. Consequently, Power Plants’ order intake picked up after a difficult first six months. I am especially pleased that we have achieved our ambition to grow the Services business. Supported by an all-time high fourth quarter, Services’ full year net sales increased by 5%.
In December we announced the acquisition of L-3 Marine Systems International, a global supplier of automation, navigation and electrical systems to the marine, naval and offshore markets. Through this acquisition our position in the electrical and automation business will be unique in terms of sector competence.
How the current market uncertainties will impact customers’ investment decisions is not yet clear, and therefore our market outlook remains cautious. We are, however, confident that our strategic focus areas position us well, and continue to see opportunities to grow sales and improve profitability in the coming year.”