Further growth in Wärtsilä's order intake during October-November

Wärtsilä Corporation, Stock exchange release 1 December 2004 at 16:00 UTC+2

The order intake of Wärtsilä’s Power Businesses grew strongly in October and November 2004 compared to the same months last year. New orders totalling EUR 468 million were received as against orders worth EUR 310 million in the corresponding period. The January–November order intake amounted to EUR 2,543 (1,968) million.

The most significant orders gained by the Ship Power business in October-November were for LNG (liquified natural gas) carriers, a strategically important growth segment to Wärtsilä. The Wärtsilä 50DF dual-fuel engine launched one year ago specifically for this market has won shipowners’ confidence and altogether 28 engines of this type have now been sold for LNG carriers. Other important orders received this autumn include engines ordered by Fincantieri for cruise ships.

Wärtsilä’s market shares
Wärtsilä’s share of orders for medium-speed main engines between June 2003 and May 2004 fell from the exceptionally high level of 38% to 22% since during this period orders were placed for only five cruise ships, traditionally a strong market for Wärtsilä. Since May this year, however, orders have already been placed for seven cruise ships. Moreover, new engine supplies have been added to the market share statistics. Wärtsilä’s market share is expected to rise again clearly based on the engine orders received in the summer and autumn.

Wärtsilä’s share of low-speed main marine engines manufactured under licence fell during the same period from 33% to 20%. The delivery volume of these engines showed a clear rise but the overall market also increased in size at the same time.

Wärtsilä’s share of the auxiliary marine engine market grew slightly.

Wärtsilä’s global share of the propeller market saw clear growth: from roughly 3% to about 9% in fixed pitch propellers, and from 34% to approximately 50% in controllable pitch propellers, Wärtsilä’s strongest area, following the acquisition of John Crane-Lips in 2002.

Propeller manufacture in China, started at the beginning of June this year, has made outstanding progress. The manufacturing volume of propellers in China this year will reach 800 tonnes and next year’s figure will be almost double this amount.

The largest power plant orders in October and November were gained in the USA, Turkey and Italy. The first of the power plant orders for Iraq, placed in the spring, is moving ahead as planned. Wärtsilä’s share of HFO (heavy fuel oil) fuelled diesel power plants rose from 38% to 74% between June 2003 and May 2004.

Forecast result for 2004 unchanged
Wärtsilä’s forecast for its full-year result remains unchanged: net sales of the Power Businesses are expected to grow slightly and profitability to improve slightly compared to 2003.