Wärtsilä's operating environment
During 2011, uncertainty over the global economic development increased. Compared to 2010, global GDP growth decreased from 5.1% to 4.0%. While the EU and the US economies suffered the most, the non-OECD countries experienced better development. The majority of Wärtsilä Power Plants' orders came from the emerging markets and the economic development in those markets remained on a good level. The decreasing GDP growth had a negative impact on certain Ship Power and Services marine customer groups, especially in the merchant markets and in Europe. Further GDP growth would be required for the merchant market to absorb the current overcapacity and for activity in vessel contracting to increase. Due to the overcapacity and low freight rates in the marine markets, there is less spending on discretionary maintenance and investments.
In 2011, oil prices escalated compared to the previous year, which had a positive impact on the offshore industry. High mineral prices supported especially mining sector investments in new capacity and power generation. In 2011, approximately 68% of sales and 61% of operating costs were denominated in euro and exchange rate changes did not have a significant impact on our result.