Independent journal on economy and transport policy
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Strong contraction of orders at the Wartsil Corporation
Eskola: 'The effects of the coronavirus pandemic are becoming increasingly evident in the level of demand in our markets'
April 21, 2020
In the first three months of 2020, it acquired new orders worth a total of 1.25 billion euros (-12%), of which 715 million euros in the Marine segment (-15%). The group's orderbook value as of March 31 last year 5.74 billion euros (-4%), of which 3.32 billion relevance of products and activities for the industry (-7%).
The chairman and CEO of the Finnish group, Jaakko Eskola, pointed out that operational performance and results also blamed the negative impact on business Covid-19 pandemic: "Delivery of equipment energy, he explained, decreased mainly because of project implementation timelines and some delays Covid-19. Measures taken to contain the spread Covid-19 - Eskola pointed out - led the factories to operate at a lower-than-normal capacity level and reduced mobility of support staff.'
As orders for solutions decrease developed by the maritime group, Eskola specified that "it was largely due to the lack of investment in scrubbers because the difference in fuel costs have been reduced.'
As for the future further impact of the pandemic on business Eskola pointed out that "the effects coronavirus pandemic are manifesting themselves with always higher evidence on the level of demand in our markets. The cruise segment, in particular -- he explained -- is been severely affected by the measures taken to contain the spreading the virus, while several project sites in the field energy have been stopped. The risk of a weakening economic scenario has led shipowners and operators to reconsider your investment plans. So even in the Eskola added that the deterioration of the macroeconomic conditions and the expected reduction in the consumption of electricity are leading to postponement of decisions on investments in the creation of new capacity generating energy.'
Eskola has announced that in order to cope with this worsening Group has taken steps to keep costs down, reducing them by around EUR 100 million, including the reduction in working hours, the use of unemployment benefits and the use of reduction in the use of external staff and consultants. Eskola, New stated that the first concrete measures were implemented in the places where activities have been affected negatively from the pandemic.
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In the first three months of 2020, it acquired new orders worth a total of 1.25 billion euros (-12%), of which 715 million euros in the Marine segment (-15%). The group's orderbook value as of March 31 last year 5.74 billion euros (-4%), of which 3.32 billion relevance of products and activities for the industry (-7%).
- Via Raffaele Paolucci 17r/19r - 16129 Genoa - ITALY
