WWL profits more than double in Q3 2017

Vehicle transport specialist Wallenius Wilhelmsen Logistics (WWL) saw improvement in ocean volumes and cargo mix, as earnings jumped 120 percent year-over-year to $55 million on revenues of $962 million in the third quarter of 2017.    Ocean carrier Wallenius Wilhelmsen Logistics (WWL), which specializes in the transportation of automobiles, more than doubled its net profits for the third quarter of 2017 compared to the same period last year, with earnings rising 120 percent year-over-year to $55 million, according to the company’s most recent financial statements.
   WWL posted revenues of $962 million in the third quarter of 2017, up an astonishing 1,200 percent from $74 million in the third quarter of last year. WWL attributed the third quarter results to continued positive development for ocean volumes and cargo mix.
   Ocean operations saw earnings rise 5 percent to $170 million in the third quarter compared to the second quarter of 2017 due to improved trade and cargo mix, synergies and project cargo shipments, the company said. Despite a seasonal fall in volumes from the second quarter, third quarter volumes increased 10 percent year-over-year thanks to a 23 percent increase in Asia to North America volumes and an 11 percent increase in Europe to Asia volumes.
   Adjusted earnings for land-based operations were down 9 percent ($3 million) compared with the previous quarter, but significantly improved compared to corresponding quarter last year. The drop is due to reduced value-adding services and volume congestions at certain plant locations, WWL said. 
   The auto markets were a mixed bag for the carrier, with total exports in the third quarter down 0.6 percent compared to last year. Exports out of NAFTA countries during the quarter increased 6.1 percent year-over-year, while European exports were up 2.8 percent and Japanese exports were down 1 percent. Exports out of South Korea slid 11 percent year-over-year due to decreased volumes in the U.S. as production capacity in Mexico began ramping up, said WWL.
   “We are pleased to see the improved results in the third quarter which is normally weaker than the second quarter,” said Craig Jasienski, president and CEO of WWL. “The results are driven by stronger volumes than anticipated, good trade mix on Ocean as well as reduced costs. On the other hand, we are still faced with tough competition and pressure on rates. We are well on the way with synergy realization, but the next wave of synergies will take more time to achieve.”
   WWL completed the planned merger between Wilh. Wilhelmsen ASA and WallRoll AB in the second quarter of 2017, renamed Wallenius Wilhelmsen Logistics ASA (WWL ASA). About two thirds of the targeted annualized synergies have been confirmed, mainly related to the organizational restructuring and procurement, WWL said. However, the company maintains a target of $100 million in annual synergies by 2019.