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Wilh. Wilhelmsen ASA - results for the third quarter 2014

Financial News

Wilh. Wilhelmsen ASA - results for the third quarter 2014

Wilh. Wilhelmsen ASA - results for the third quarter 2014

(Lysaker, 11 November 2014) Decline in volumes

transported deep-sea, mainly seasonal, and

unfavourable cargo and trade mix led to weaker

results for WWASA in the third quarter. Adjusted

total income declined 6% compared with the second

quarter, while the operating profit fell 19%.

The operating profit for the third quarter totalled

USD 66 million against USD 78 million in the same

quarter 2013 (third quarter 2013 hereafter in

bracets). Total income ended at USD 650 million (USD

667 million). Hyundai Glovis contributed with a non-

recurring gain of USD 12 million in quarter,

positively affecting both operating profit and total

income. The operating profit was, however, negatively

impacted by non-recurring items of USD 10 million

related to American Shipping and Logistics. In the

same quarter last year, the operating profit was

negatively affected by an accrual of USD 3 million

related to internal restructuring of WWASA. Adjusted

for non-recurring items, the operating profit was USD

64 million (USD 81 million), while the total income

was USD 638 million (667 million).

"The volumes transported deep-sea decreased 8% from

the second quarter. Most of the decline is related to

seasonality, with lower sales and production

following holiday season in Europe and the US. In

addition, labour strikes impacted export volumes from

Korea," comments Jan Eyvin Wang, president and CEO in

WWASA. "High and heavy volumes were also down, with

agriculture season-ending in both Europe and North

America."

When commenting on a decline in contribution from the

group's logistics activities, Mr Wang

says: "Wallenius Wilhelmsen Logistics delivered

slightly lower figures. The activity level in

American Shipping and Logistics fell substantially

following the loss of the Privately Owned Vehicle

contract, effective 1 May. Contribution from Hyundai

Glovis more than doubled, with USD 12 million being

attributed to a non-recurring gain."

The board of WWASA anticipates the group's

profitability to continue to be negatively affected

by the challenging market sentiment. Volumes

transported deep-sea and handled at the group's

logistics facilities is expected to increase slightly

in the fourth quarter compared with the previous

quarter. Short term, a decrease in the bunker price

will have a positive effect on net bunker cost.

"We have a strong financial position with a healthy

balance sheet, and are positioned to meet the

challenges in the industry and act upon market

opportunities," concludes Wang.

WWASA's board has, based on an authorisation granted

by the annual general meeting on 24 April 2014,

resolved to pay a second dividend of NOK 1.00 per

share, totalling USD 32 million. Dividend is expected

to be paid on or about 27 November 2014.

Source: NewsWeb