Wilh. Wilhelmsen earns profit though revenue falls

Wilh. Wilhelmsen earns profit though revenue falls    Wilh. Wilhelmsen's first half operating profit fell 14.8 percent to $114.7 million, while revenue slid 27.7 percent to $1.2 billion.
   The car and roll-on/roll-off carrier recorded group profit before tax and interest of $183.8 million.
   “Yet another quarter characterized by a continued weak global economy and a substantial drop in cargo volumes compared with last year is impacting our operating income and bottom line,” said Ingar Skaug, group chief executive officer at Wilh. Wilhelmsen. “The drop in cargo volumes is particularly evident for Wallenius Wilhelmsen Logistics. Our other shipping companies deliver satisfying results. Despite lower activity level and reduced total income in the maritime services segment, operating profit is on par with last year.'
   Skaug said the company's strategy to diversify within the maritime industry proved to be successful in limiting the negative effects of the economic downturn. Second quarter profit in 2009 actually increased nearly 5 percent to $78.3 million despite a 29 percent drop in revenue to $633.1 million.
   “The slide in ocean transportation of cars and ro/ro cargo so far this year has been greater than the sales volume drop, bringing the global inventory levels down,' Skaug said. 'Consequently, there is reason to expect the production decline to approach the trough and increased probability for higher production levels later this year. This will in turn lead to increased demand for transportation and related services which should result in higher utilization of our vessels.”
   For the second half of 2009, the company expects global economic uncertainty and weakness to continue, with the car and ro/ro markets showing signs of bottoming out. That said WW is expecting a moderate improvement in the group’s operating profit in the second half of 2009 compared with the first half, though significantly lower than the same period in 2008.