Risks and business uncertainties
Towards the end of the year 2011, the uncertainty concerning the global economy and the financial markets increased certain risks for Wärtsilä’s businesses.
In the Power Plants business, uncertainty in the financial markets may impact the timing of bigger projects.
Uncertainty regarding the global economic situation continues to threaten the outlook for shipping and shipbuilding. Overcapacity is exerting pressure on freight rates, especially in the traditional merchant segments such as bulk carriers and tankers. The main risk for Ship Power is still delays in yard delivery schedules, while difficulties in the financial markets have increased the risk of cancellations.
Increasing risks in the financial markets may have a negative impact on Services’ order intake. The tough conditions in the marine merchant markets are also seen as a potential risk, and they could have a negative impact on net sales in 2012.
The annual report for 2011 contains a thorough description of Wärtsilä’s risks and risk management.