Wärtsilä’s performance in 2016 was in line with the expectations set out in the company’s revised guidance. This was largely thanks to a fourth quarter with good delivery execution, growth in Services’ revenues, and an improved project mix. Cash flow developed well, primarily due to a strong focus on working capital management.
Service market activity was solid, with a healthy demand for power plant maintenance services compensating for challenges in certain marine markets. In the equipment businesses, Wärtsilä faced headwinds related to slow trade growth, low oil and gas prices, as well as the financial constraints faced by many marine customers. Activity in the energy markets, on the other hand, improved. Growth in electricity demand in the emerging markets and energy policy changes globally supported customer interest in Wärtsilä’s solutions. The combined effect of these end-market trends resulted in stable order intake development.
During the year, Wärtsilä continued to develop its business by expanding its offering of products and solutions through research and development activities, partnerships and acquisitions.