“Wärtsilä's net sales developed well in the third quarter, thanks to the strong growth in newbuild marine and energy deliveries. This, in combination with slower than anticipated development in transactional service volumes, is affecting the group sales mix and burdening profitability.
In the marine industry, the approaching IMO 2020 sulphur regulations have resulted in increased demand for exhaust gas cleaning systems. This boosted order intake in both Marine Solutions and Services. Marine Solutions’ orders were further supported by the continued high level of activity in the cruise and ferry segment. In the energy markets, postponed investment decisions for certain projects adversely affected Energy Solutions’ order intake. Nevertheless, a healthy project pipeline provides confidence in improved activity going forward.
In August, Wärtsilä announced that it will build a new centre for research, development and production, in Vaasa, Finland. When finalised in 2020, this Smart Technology Hub will enable more agile and efficient testing, development, and production of solutions for the maritime, oil and gas, and energy industries. Another key step in the execution of our strategies was the decision to reorganise into two business areas, Wärtsilä Marine Business and Wärtsilä Energy Business, as of the beginning of next year. By forming two business areas that cover both new sales and services, we will enhance customer value through a stronger focus on lifecycle solutions tailored to specific market needs. Customers will also benefit from increased flexibility and even faster response times. I firmly believe that this will support our progression towards our long-term financial targets.”