Wärtsilä in talks to buy British Hamworthy for EUR 440 million

Hamworthy manufactures hi-tech products, systems, and services to the marine and oil and gas industries.

The Finnish engineering company Wärtsilä confirmed in its statement on Thursday that it is willing to pay EUR 440 million for the purchase of the UK-based Hamworthy plc.

According to the press release, Wärtsilä is ”in advanced discussions” with Hamworthy regarding a potential GBP 8.25 (EUR 9.6) per share cash offer.
The announcement made by the companies does not amount to an announcement of a firm intention to make an offer and there can be no certainty that an offer will be made.
      
Wärtsilä is to either announce a firm intention to make an offer for Hamworthy by December 15th or announce that it does not intend to make an offer.

Wärtsilä is the leading manufacturer of ship machinery, providing engines and generators for all types of vessels as well as power plant technology.
The company’s market value was EUR 4.2 billion on Thursday.

Hamworthy provides high technology products, systems, and services to the marine and oil and gas industries.
Its market value was EUR 360 million on Thursday.
      
Wärtsilä’s announcement means that the company is ready to pay a premium of 22 per cent on Hamworthy’s closing share price of GBP 6.75 on Thursday.

Helsingin Sanomat - International Edition

http://www.hs.fi/english/article/Wärtsilä+in+talks+to+buy+British+Hamworthy+for+EUR+440+million/1135269884112

The impact of the crisis in Sweden

The European debt crisis has reached Sweden. Many forecasters, including for the Swedish government, believe this downturn will be short. But nothing supports this scenario. On the contrary, reality has caught up to the European economies, so Swedish growth recovery won’t return to normal for several years. For 2012 The Confederation of Swedish Enterprise expect growth of only 0.2 percent.

“We are not seeing an ordinary recession, but rather a structural debt crisis, which will remain deep for long. Any recovery will demand significant political reform. But in the best of scenarios, we see normal growth returning to Europe and Sweden only in a few years,” comments Stefan Fölster, Chief Economist at the Confederation of Swedish Enterprise.

The downturn in the Swedish economy will be substantial in the coming quarter, starting with larger companies, especially those exporting to Europe. But, we see those that export to China and Asia doing better. As suppliers to European exporters become affected, the negative spiral of the crisis will spread throughout the Swedish economy.

Industrial regions will experience the greatest negative effects in 2012, except for regions with significant mining industries.

Many local governments have been entirely too optimistic in their budgets, and will be forced to cut back when tax revenues don’t meet forecasts. But we do see that local governments who have worked to improve the local business climate are now facing the crises with greater stability,” concluded Mr. Fölster.

The Confederation of Swedish Enterprise Q3 Economic report is titled “Reality check”.

2011-10-04
Confederation of Swedish Enterpriseshttp://www.svensktnaringsliv.se/english/long-road-to-reach-end-of-tunnel_141275.html

Finnish Business outlook weakened notably during the autumn

According to the Business Tendency Survey conducted by EK in October, the business outlook of Finnish companies already took a turn for the worse in the late summer and early autumn. The third-quarter trend, especially in manufacturing, was weaker than expected.

Divergence between different sectors remains highThe business outlook for the coming months has deteriorated significantly and the degree of divergence between companies and sectors has continued to grow. Business is expected to suffer in all the main sectors during the next six months. 

Industrial production and service sector sales, however, are forecast to grow very slightly during the coming six months. In construction, production will remain at its current level. Labour force expectations are cautious in all sectors, with employment in manufacturing expected to even drop slightly.

The manufacturing industry business outlook indicator for October was -20 (+9 in July). Of the respondent companies, 16% expected the economy to pick up towards the end of the year and early next year, while 36% thought the situation would take a turn for the worse. 

In October, the business outlook indicator for construction declined to -45 (+7 in July). 3% of respondents expected an improvement in the economy and 48% expected a deterioration.
 
The outlook for service companies in October declined to -15 (+11 in July). 8% of companies expected the economy to strengthen, while 23% expected a turn for the worse. 

Early-autumn performance weaker than expectedThe manufacturing companies that responded to the survey received fewer new orders in the third quarter than in the second. The trend was weaker than expected three months ago. Orders in the construction sector were also slightly down. Manufacturing companies’ order backlog declined slightly and is currently described as somewhat below average. Similarly, the construction sector’s order backlog shrank to slightly below the normal level. 

Finished goods inventories grew in manufacturing to slightly above normal. Construction companies still have few unsold homes, even though the number increased compared with early summer. 

Manufacturing companies that responded to the survey expect the number of new orders they will receive during the latter part of the year to remain unchanged. Orders are expected to be down slightly in the construction sector.

Manufacturing output fell clearly below expectations, as production quantities began to decline moderately in late summer. However, output is forecast to grow slightly during the latter part of the year and early next year. Construction output grew moderately, although production figures for the end of the year are not expected to change much. 

In the service sectors, sales growth was fairly brisk in the early autumn. Growth is forecast to slow down somewhat in the latter part of the year, although according to estimates, the growth rate will remain moderate. 

Manufacturing companies’ capacity utilisation fell slightly, and is now below the long-term average level. In October, 37 per cent of manufacturing companies had some idle capacity (28 per cent in July). 

Employment growth expectations quite cautiousThe labour force grew somewhat in construction and services. The employment trend in construction was weaker than estimated, with the labour force contracting slightly. In construction and services, the labour force is forecast to remain at its current level during the latter part of the year. The manufacturing labour force is expected to continue to decline somewhat. 

Rise in prices and costs is expected to level out slightlyThe rise in sales prices slowed down in all the main sectors. In manufacturing the rise was small, while in construction it came to a complete halt in the third quarter. The rise in costs continued, but upward pressures on costs levelled off somewhat. 

Service companies expect the rise in prices to slightly pick up again during the latter part of the year. In manufacturing, the rise is expected to continue to slow down, and in construction, prices are expected to begin to decline somewhat. Costs in the services sector are expected to continue their general rise, while in other sectors the rise in costs would continue to decelerate. 

Profitability improved somewhat in manufacturing and services. In construction, profitability remained unchanged. Future profitability is estimated to remain unchanged in construction and to improve slightly in manufacturing and services. 

Labour shortages continued to be commonplace in construction and services. 31% of construction companies and 18% of service companies suffered from a lack of skilled labour, whereas only 4% of respondents in the industrial sector suffered from labour shortages. Insufficient demand was the main bottleneck in manufacturing, with 35% of companies identifying it as a problem. 

EK Business Tendency Survey

The Confederation of Finnish Industries EK’s Business Tendency Survey is published four times per year. The survey has been carried out regularly since 1966. 1,016 companies employing approximately 270,000 people in Finland replied to the survey carried out in October 2011.


03.11.2011
Confederation of Finnish Industries
http://www.ek.fi/ek/en/business_outlook_weakened_notably_during_the_autumn-8126

Increased imports and exports in Norway

In October, the Norwegian trade surplus came to NOK 26.7 billion; a rise of 1.9 per cent from the same period last year.

The export growth was mainly due to higher prices of both crude oil and natural gas. Several commodity groups accounted for the increase in imports.

Exports of goods, excluding ships and oil platforms, came to NOK 70.7 billion in October, while imports reached NOK 44.0 billion. Compared to October 2010, the import and export rose by 7.7 and 5.5 per cent respectively.

The total export volume of crude oil in October; 37.2 million barrels, was the lowest recorded this year. The export value amounted to NOK 23.5 billion, up 6 per cent from October last year, due to higher prices. At the same time, the export value fell 12 per cent from September to October this year.

The export value of natural gas in October came to NOK 17.8 billion; 9 per cent higher than last year, due to rising prices. The exported volume, on the other hand, fell slightly.

The commodity group including machinery and transport equipment, which are our main import articles, showed an increase of 16 per cent in total, amounting to NOK 16.0 billion. While all types of machinery rose, the imports of telecommunications apparatus and equipment fell by 6 per cent, to NOK 1.6 billion. Passenger cars also showed an upturn of 18 per cent, reaching NOK 2.9 billion.

The import value of manufactured goods and miscellaneous manufactured articles accounted for NOK 6.9 billion and NOK 7.2 billion respectively – up 12 and 7 per cent. Amongst manufactured goods, metals and manufactures of metals showed the sharpest growth, while clothing and professional, scientific controlling instruments took the lead among the manufactured articles.

While food and beverages rose, the imports of inedible crude materials and mineral fuels dropped.

2011-11-16

norwaypost.no

España y Noruega colaboran en el campo de las nuevas tecnologías medioambientales

A través del mecanismo financiero del Espacio Económico Europeo (EEE), España y Noruega van a colaborar en investigación y desarrollo en el campo de las energías renovables. Se dará especial relevancia a la energía hidraúlica, solar, eólica y marina.

El ministro de Asuntos Exteriores Jonas Gahr Støre explica que: “Los fondos del EEE contribuirán a reforzar la colaboración entre Noruega y los países receptores. Facilitamos ese refuerzo mediante este programa de energías renovables, entre otros. España y Noruega hacen buena pareja en el campo de las tecnologías medioambientales”.

Se refiere a que España está entre los mayores y más avanzados productores de nuevas energías renovables.

En total, España recibirá unos 360 millones de coronas noruegas (aproximadamente 46 millones de euros) de los fondos del EEE hasta el 2014. De ellos, unos 140 millones de coronas serán destinados al desarrollo de nuevas tecnologías medioambientales. Innovation Norway contribuirá a sentar las bases de una intensificación de la colaboración entre el tejido empresarial español y noruego y sus centros de investigación junto al Centro para el Desarrollo Tecnológico e Industrial (CDTI) quien gestiona el programa por parte española.

El acuerdo se firmó hoy en Madrid. La igualdad de género es también un área prioritaria en España. El representante de Noruega será el Defensor de la Igualdad de género y la integración. Este programa contribuirá, entre otras cosas, a fomentar la iniciativa empresarial entre las mujeres, la paridad en los consejos de administración, la integración de las mujeres rom e inmigrantes, y a combatir la violencia contra las mujeres. A este proyecto se han destinado cerca de 90 millones de coronas noruegas.

Además de los fondos destinados a energías renovables e igualdad, se han asignado unos 30 millones de coronas noruegas a un programa de becas para estudiantes e investigadores, 35 millones a un fondo para ONGs y 35 millones para proyectos culturales comunes.

Los fondos del EEE son la contribución de Noruega a la reducción de las diferencias sociales y económicas en Europa. Este apoyo debe también servir para reforzar la colaboración entre Noruega y los países receptores. El mecanismo financiero del EEE tendrá unos fondos de 14.000 millones de coronas noruegas (unos 1795 millones de euros) hasta el 2014. De ellos, Noruega aporta un 97%, mientras que Islandia y Liechtenstein asumen el resto.

Source: Real Embajada de Noruega en España

http://www.noruega.es/News_and_events/Mecanismos-de-financiacion-EEE/Espana-y-Noruega-colaboran-en-el-campo-de-las-nuevas-tecnologias-medioambientales/

Economic experts warn of hard times ahead

Finnish economic experts are split into two camps in their predictions on economic trends in the near future. Sixten Korkman, managing director of the Research Institute of the Finnish Economy (ETLA) and Pasi Holm, the head of Pellervo Economic Research predict that the economy will experience negative growth.

Meanwhile, Seija Ilmakunnas, head of the Labour Institute for Economic Research, and Juhana Vartiainen, head of research at Sweden’s National Institute of Economic Research, expect slight economic growth in 2012.

     

The European Commission expects Finland to reach 1.4 per cent growth, whereas the average growth for all countries in the eurozone is forecast at 0.5 per cent. The forecast is based on information that was available before the crises in Greece Italy flared up.

Some experts actually expect the spring to bring new life to the economy, but the growth will be significantly weaker than the Finnish government had previously assumed.

     

The first signs of crisis consciousness are already apparent. The economic journal Talouselämä wrote on Thursday that the Ministry of Finance has urged other ministries to prepare for further cuts in the upcoming framework talks.

“We are currently drawing up various contingency plans, because nobody knows what the economy will look like a month from now”, said Minister of Finance Jutta Urpilainen (SDP).

The framework for state finances for 2013-2015 will be set in March.

     

Prime Minister Jyrki Katainen (Nat. Coalition Party), Finance Minister Urpilainen, and all economic experts interviewed by Helsingin Sanomat agree that the government should not take fright and should not start scaring Finns with upcoming cost cutting measures.

The top ministers in the government insist that heads are cool. No further cost cuts are coming until the late winter.

Urpilainen says that the framework talks in March will be the right time and place to assess whether or not additional measures are needed.

     

Korkman and the other economic experts expect the government to take action in the spring to institute extensive structural changes.

“Working careers need to be extended and the retirement age must be raised for the employment level to rise and for the tax base to grow stronger”, Korkman says.

Vartiainen agrees, adding that Finland needs to recruit more labour from abroad.

     

Pasi Holm sees a need for extensive changes in the government’s policy programme. “The programme is based on an assumption of 2.5 to 3 per cent annual growth, which is not going to happen.”

Seija Ilmakunnas wants to see the framework agreement for the labour market to be put into shape. “After that we need to implement the municipal and service structure reforms. They will bring savings.”

     

Katainen and Urpilainen also emphasise the importance of the municipal reform.

The government programme includes a statement according to which state indebtedness needs to be reduced by 2015.

The way things look now Korkman does not expect this to happen because the economy will be shrinking and unemployment might rise.

     

Sixten Korkman is also worried about a “self-detonating trap” that he says lies hidden in the government programme.

The government has promised to cut spending and raise taxes if the debt does not go down.

“Therefore, the government must deepen the recession by tightening financial policy”, Korkman laments. 

HELSINGIN SANOMAT

INTERNATIONAL EDITION - BUSINESS & FINANCE

http://www.hs.fi/english/article/Economic+experts+warn+of+hard+times+ahead/1135269845729

Forecast for Spanish economy - The Economist

Spain

• Debt will be 68% of GDP by the end-2011.
Deficit falling from 11.1% in 2009 to 9.3% in 2010 and 6.5-7% in 2011.

• It should be held to 75% of GDP by 2016
But still danger of cycle of recession leading to falling revenue and wider deficits.

• But measures have been serious and sufficient political consensus.

© 2011 The Economist Intelligence Unit. All Rights Reserved.