Wilh. Wilhelmsen gets profit boost from ro/ro business

Wilh. Wilhelmsen gets profit boost from ro/ro business    Wilh. Wilhelmsen ASA reported a four-fold increase in net profit from its liner and car carrier roll-on/roll-off arm to $42 million in the third quarter, from $10 million a year earlier, helping the Norwegian shipping group obtain the best quarterly result in its history.
   Wilhelmsen’s group net income, including liner and car carriers, agencies and ship management, reached $39 million in the third quarter, up from $12 million a year ago. The agencies arm, Barwil, and the ship management business, Barber International, posted largely unchanged net profits of $2 million and $1 million, respectively.
   The company’s liner and car carriers business, which includes 50 percent of the Wallenius Wilhelmsen Lines venture as well as stakes in Eukor and American Roll-on/Roll-off Carriers, increased its third-quarter gross revenue 15 percent to $246 million. Its operating income after depreciation jumped to $44 million, from $28 million in the third quarter of 2003.
   “Wallenius Wilhelmsen Lines continued to experience extremely high cargo availability in virtually all the trades it serves, and the company’s results were accordingly very strong,” Wilhelmsen said. Traffic from Asia to North America and Europe, and between Europe/North America and Oceania, remained “particularly buoyant,” the company added.
   “The North Atlantic is currently the only trade which still offers room for improvement, primarily because of low rates,” the shipping group said.
   In the third quarter, Wilhelmsen closed its British inland transport subsidiary Richard Lawson, after a period of negative development. It reported that developments at the French logistics company Compagnie d’Affretement et de Transport SA (CAT) have not been satisfactory. “Results were on a par with 2003, and new measures have now been implemented to improve earnings,” Wilhelmsen said.
   For the first nine months of the year, the Wilhelmsen group raised its net profit to $93 million, from $44 million in the same period of 2003. The liner and car carrier business improved its profits from $42 million for the first nine month of 2003 to $93 million, still representing virtually all the profits of the group.
   In September, Wilhelmsen decided to merge the Barwil and Barber International service companies into an entity to be called Wilhelmsen Maritime Services, effective Jan. 1. The Norwegian parent company said the decision was based on a global customer study that concluded a clear requirement exists for a large global organization covering a wide range of shipping services.
   Wilhelmsen said the liner and car carrier business is continuing to develop positively, and prospects for the next few months “are very good in virtually all trades.”
   High bunkers costs have a negative effect, but hedging contracts will guard against major surprises, it said.