Wilh. Wilhelmsen ASA: Results for the second quarter of 2016
WWASA had an increase in transported volumes in the
second quarter 2016, positively impacting results. In
addition, a non-recurring gain lifted WWASA's total
income and operating profit substantially.
Total income for the second quarter was USD 905
million, up from USD 608 million in the first quarter.
The operating profit ended at USD 417 million, up from
USD 126 million in the previous quarter. Adjusted for
non-recurring items, both total income and operating
"Transportation of both cars and high and heavy
equipment improved from a weak first quarter, partly
due to seasonality. This improved the underlying
operating profit to USD 44 million for the quarter.
The significant contribution in the second quarter
was, however, the non-recurring gain of USD 375
million from the demerger of Den Norske Amerikalinje,"
says Jan Evyin Wang, president and CEO of WWASA.
Contribution from Hyundai Glovis was discontinued in
the second quarter following the demerger. Operating
profit from land-based activities in Wallenius
Wilhelmsen Logistics (WWL) continued on a healthy
level and was on par with the first quarter.
Visualising values for WWASA's shareholders through
the spin-off, the annual general meeting held 3 May
2016 resolved not to pay dividend for the fiscal year
2015. In July, WWL reached a settlement with the US
Department of Justice (DOJ), agreeing to pay a fine of
USD 98.9 million (USD 49.5 million for WWASAs
account). WWASA made a provision for the outcome of
the anti-trust investigation in several jurisdictions,
in the third quarter of 2015. Consequently, the fine
will not have a profit and loss effect for WWASA in
2016. The settlement also closed DOJ's investigation
into EUKOR. EUKOR did not receive a fine.
Commenting on the prospects for WWASA, the board
states: "We anticipate volume growth to remain weak
over the next period, with continued pressure on
margins. The current global political landscape adds