Wilh. Wilhelmsen’s 2nd-quarter profit up 28%

Wilh. WilhelmsenÆs 2nd-quarter profit up 28% Wilh. Wilhelmsen, a major shareholder in vehicle carriers Wallenius Wilhelmsen Logistics, American Roll-on/Roll-off, Eukor and Unitor, today reported a 28.3 percent second quarter net operating profit rise, and said it would have been higher but for difficulties securing sufficient capacity for a strong market.
   The Norwegian company’s net operating profit for the second quarter came to $68 million, compared with $58 million in the same period of 2006. Total operating income was $641 million, down 3.5 percent against $664 million last year.
   “Our results are good, but could have been even better if we had a more balanced capacity situation and therefore could avoid the additional costs imposed on us by the tight market,” said Ingar Skaug, Wilh. Wilhelmsen's group chief executive, adding that trades from Asia to North America and Asia to Europe are under particular pressure.
   “To make tonnage available for our Pacific trade, we’ve had to transport cargoes by land between the U.S. West and East coasts,” Skaug said. “We also have more ballast legs from Europe back to Asia in order to ensure capacity. And expensive additional tonnage must be chartered in. At the same time, our results are influenced by high bunkers costs, particularly for Eukor, our Korean shipping company.”
   Net operating profit for the first half was down 8.3 percent to $121 million, compared with $132 million after the first six months of 2006. Total operating income for the period decreased 8 percent to $1.2 billion, from $1.3 billion.
   The company is forecasting a profit for 2007 'somewhat weaker than in 2006' primarily because Eukor has not yet reached agreement with Asian car manufacturers Hyundai and Kia on compensation for higher fuel prices.
   In the Northeast, the carrier has regional offices in Baltimore, New York, Norfolk and Philadelphia.