WILHELMSEN GROUP REPORTS 27% DROP IN ANNUAL PROFIT

WILHELMSEN GROUP REPORTS 27% DROP IN ANNUAL PROFIT    Wilh. Wilhelmsen ASA, the Norwegian group that owns 50 percent of Wallenius Wilhelmsen Lines, reported a net income of $37 million for 1999, down 27 percent on the 1998 net profit of $51 million.
   Operating income decreased by 45 percent, to $56 million, from $101 million in 1998.
   Total operating revenue for 1999 was $787 million, marginally lower than the 1998 revenue of $794 million.
   Wilhelmsen said that its 1999 results “showed a clear decline from the two previous years” and were caused by the increase in bunkers prices and reduced earnings from the liner and car carrier business and a number of one-off expenses at Barwil Agencies.
   Since July 1, 1999, the liner, roll-on/roll-off and car carrying business of Wilhelmsen has operated as part of the 50-50 Wallenius Wilhelmsen Lines joint venture with Wallenius.
   Wilhelmsen said that operating income for this business came to $61.5 million in 1999, compared with $90 million the year before. Net income amounted to $36.7 million in 1999, down from $60.6 million in 1998. Weak earnings from the roll-on/roll-off and car carrying business in the first few months were followed by a strong improvement up to July/August, when the market again went into a substantial decline, the Norwegian company said. Substantial restructuring expenses related to the establishment of Wallenius Wilhemsen Lines were incurred in 1999.
   Wilship, the Wilhelmsen group’s tanker and bulk carrier arm, continued to show weak results last year, with a net deficit of $2.3 million.
   Wilhelmsen said that “great uncertainty prevails about the results for 2000,” primarily because of developments in the car/ro-ro carrier market and continued over-capacity. However, the Norwegian group expects somewhat better results in 2000.
   The lower profit results for 1999 of Wilhelmsen follow last week’s announcement of an annual deficit at fellow Norwegian shipping group Hoegh.