Wilh. Wilhelmsen: profit falls, but shipping volumes strong

Wilh. Wilhelmsen: profit falls, but shipping volumes strong

Wilh. Wilhelmsen, the Norwegian half-owner of Wallenius Wilhelmsen, said it had third quarter net profit of $37.6 million compared to $74.8 million in the year-earlier period.

   Revenue for the quarter was $854 million compared to $677 million in the same 2007 period.

   The company said these results were reported using a “proportional method” of accounting, which it said gives a better reflection of its operation in joint ventures than official accounts.

   “Shipping cargo volumes have been strong and stable in the third quarter. This is also contributing to strong volumes for our logistics segment. Within maritime services we experienced high activity and we increased    our market share,” said Ingar Skaug, group chief executive officer.

   “As the rest of the world, we are well aware of the present economical situation making it highly uncertain to predict the future. We are, however, positioned for adverse market developments through a large customer and cargo base, a global trade pattern and the flexibility to redeliver chartered vessels,” Skaug said.

   The company gave details on various segments:

   ' Wallenius Wilhelmsen Logistics had a 15 percent increase in operating income during the third quarter compared with the same period of last year. It attributed this to higher bunker cost compensation, cargo rate increases and a favorable trade mix.

   “Overall cargo volumes remained strong, with third quarter volumes in line with the same period of last year. A significant shift occurred in trade patterns, especially related to the North American export trades, which as a result of the weak U.S. dollar rose significantly,” the company said.

   “The Asia/Europe trade remained strong, with a considerable rise in volumes to Russia offsetting somewhat lower quantities to the European Union. Volumes from Asia to North America and from Europe/North America to Oceania remained stable at high levels,” it added.

   ' EUKOR Car Carriers, in which it has a 40 percent stake, recorded 20 percent growth in operating income for the third quarter.

   ' American Roll-On Roll-Off Carrier, in which it has a 50 percent stake, recorded an operating income and operating profit in line with the third quarter of last year. 'Both trades (North Atlantic and Middle East) performed satisfactorily. ARC operates four vessels in each of the trades.”