Wärtsilä to Look into Rolls-Royce’s Marine Business?
- Business & Finance
Finland-based technology group Wärtsilä is open for acquisition opportunities in the market that might fit its strategy moving forward.
The likely candidate could be Rolls-Royce’s loss-making marine division which has been put under strategic review by the company.
Speaking at today’s press conference on the poential acquisition of Rolls-Royce’s business Jaakko Eskola President & CEO said that Wärtsilä would “need to look at what is available there and what is going to be their final plan.”
“If we see an interesting player in the market, who would fit well into our strategy… we would definitely look at it,” Eskola noted.
The previous talks on a potential business combination between the two companies fell through as the Finish technology group believed the move would not result in the addition of “incremental value” to the company.
However, while commenting on the situation now, this doesn’t seem to be the issue anymore.
Earlier this month, UK-based engineering company Rolls-Royce said it would launch a strategic review of available options for its Commercial Maritime division, which are likely to include finding a new owner for the business.
Rolls-Royce is working on the further reshuffling of its business structure and plans to reduce its five operating units to three core businesses based around Civil Aerospace, Defence and Power.
2017 was a good year for Wärtsilä as the company’s order intake increased 15 pct to EUR 5.64 billion and net sales were up by 3 pct to EUR 4.92 billion.
“The year 2017 developed according to our expectations. Increased power plant deliveries supported some growth in net sales, while profitability was in line with the previous year, due in part to a positive business mix in the fourth quarter. The favourable order trends seen throughout the year continued in the fourth quarter, providing us with a solid basis from which we can develop our business,” Eskola said.
“Looking ahead, I believe that developing smart technology and integrating new business models into our offering will be at the core of our long-term value creation, both for our shareholders and society at large. In terms of 2018, our demand outlook has improved somewhat. We continue to see growth opportunities in our service business, based on our portfolio of long-term agreements and the increasing technological sophistication of our installed base. The demand for our energy solutions is anticipated to be at a good level, supported by a healthy project pipeline and favourable market trends. Market conditions are expected to improve in the marine industry, thus supporting a solid demand outlook.”
World Maritime News Staff