Wartsila Q2 Profits Dip on Weaker Demand
Finland's Wartsila Oyj missed second-quarter forecasts on Thursday and warned it expects demand to weaken for both its marine and energy businesses in the coming 12 months, sending shares in the engineering firm 8 percent lower.
Its comparable operating profit fell to 113 million euros ($127 million) from 123 million and missing the 132 million forecast by analysts in a poll.
Sales fell to 1.22 billion euros from 1.25 billion and missed the 1.37 billion forecast by analysts.
Wartsila downgraded its outlook for its marine business to 'soft' from 'solid', due to lower vessel contracting volumes and a decline in demand for scrubber solutions from last year’s exceptionally high level.
It also cut its demand outlook for its energy business to 'soft' from 'solid' as political risks and economic uncertainty hold back customer investment.
Reporting by Tarmo Virki, Reuters