April 25, 2019 / 6:34 AM / 8 months ago

UPDATE 1-Finland's Wartsila Q1 orders miss estimates amid sluggish market recovery

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April 25 (Reuters) - Wartsila said on Thursday its quarterly order intake lagged estimates, as the Finnish engineering group struggled with a slow of recovery in the marine industry and subdued activity in the energy market.

Wartsila, which focuses on marine and energy markets, reported first-quarter order intake of 1.42 billion euros ($1.58 billion), missing the 1.51 billion euros seen in a Reuters poll of estimates.

“Reduced activity in the energy markets resulted in a decline in group order intake”, Chief Executive Officer Jaakko Eskola said in a statement.

In a note to clients, Jefferies analysts said: “After very strong results from peer Alfa Laval yesterday, the overall message is less positive than we expected.”

On Wednesday, Alfa Laval reported higher than expected orders in the first three months of 2019, but said it expected slightly lower demand in the second quarter.

Wartsila still anticipates solid demand both in the marine and energy segments in 2019. However, it said geopolitical risks and global uncertainty was affecting customers’ decisions.

Struggling with low demand especially in its services business, the company said in January it would shed 1,200 jobs, or about six percent of its workforce.

$1 = 0.8964 euros Reporting by Boleslaw Lasocki in Gdynia; Editing by Shreejay Sinha and Mark Potter

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