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Finnish Waertsilae announces 1,000 job cuts despite profits

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(Globalpost/GlobalPost)

Finnish ship engine and energy company Waertsilae, recently approached by Rolls-Royce with an initial takeover offer, said on Wednesday it will cut 1,000 jobs to boost competitiveness despite rising profits.

Net profit in 2013 grew by 15 percent from the outcome last year to 391 million euros ($534 million).

Sales fell by 1.5 percent to 4.654 billion euros, dragged by a slowdown in the power plant construction business, where revenue fell by 18 percent in the fourth quarter and by three percent for the entire year.

"In the power plant markets delays in customer decision-making continued," chief executive Bjoern Rosengren said in a statement.

The engine business showed more impulse, with a two-percent rise in 2013 sales.

In the last quarter, Waerstilae's revenue decreased by eight percent compared to the same period last year, but net profit was up by 20 percent to 147 million euros.

The company also announced it will slash 1,000 jobs worldwide by the end of the year, Finland being the hardest hit country with 200 lay-offs.

The plan intends to "secure future profitability and competitiveness" in an environment of weak growth and intense competition with a 60-million-euro savings goal, according to Waertsilae.

At the beginning of January, Waertsilae said it had been approached with an outline takeover offer from British engine maker Rolls-Royce, adding that the discussions were "no longer continuing".

In mid-day trading, the company's shares were up by 3.01 percent on the Helsinki stock exchange, while the market showed a gain if 0.67 percent overall.

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WÄRTSILÄ

ROLLS-ROYCE HOLDINGS

http://www.globalpost.com/dispatch/news/afp/140129/finnish-waertsilae-announces-1000-job-cuts-despite-profits