Wilhelmsen posts stable 4th quarter, improved yearly profits

Wilhelmsen posts stable 4th quarter, improved yearly profits    Norway’s Wilh. Wilhelmsen reported a $22 million net profit for the fourth quarter, up marginally from $21 million in the fourth quarter of 2002.
   Net profit for the year, however jumped 22 percent to $66 million from $54 million in 2002.
   Group operating income before the profit from associated companies declined to $13 million in the fourth quarter, from $19 million a year earlier. Financial items improved and taxes decreased over the same period, leading to the slight increase in net profit.
   Wilhelmsen said that, due to accounting changes, the actual improvement in the underlying business was almost $22 million.
   Group fourth-quarter revenue remained unchanged at $260 million.
   Wilhelmsen’s liner and car carrier activities earned a fourth-quarter net income of $18.7 million, up from $16.7 million a year earlier. Gross revenue from this business declined to $222.8 million from $226 million, with operating income down to $20.2 million from $24.1 million.
   Wilhelmsen owns 50 percent of Wallenius Wilhelmsen Lines, the roll-on/roll-off and car-carrier joint venture.
   “Cargo availability was good throughout the period, and the tight tonnage position made it possible to obtain clear synergies from the collaboration between Eukor and Wallenius Wilhelmsen Lines,” Wilhelmsen said. Eukor, a shipping joint venture with Korean car manufacturers, made a fourth-quarter profit of $3 million.
   Barwil, the ship agency arm of Wilhelmsen, earned fourth-quarter net income of $300,000 after charging one-off costs relating to a Malaysian terminal to the accounts. That compares with a loss for the same quarter in 2002 owing to a write-down on a timber terminal in Riga.
   Barber, the Norwegian group’s ship management business, delivered weaker figures for the fourth quarter than in earlier quarters.
   For the year, Wilhelmsen had an operating income of $72 million up from $71 million in 2002, and gross revenues of $966 million up from $875 million.
   Operating income from Wilhelmsen’s liner and car carrier operations rose to $89.6 million last year, from $78.2 million the year before. Gross revenue from this segment jumped to $839.7 million in 2003, from $758.3 million in 2002. Net income for this business increased to $60.7 million, from $51.8 million in 2002.
   “This progress reflects several factors, primarily good utilization of capacity in important trades, improvements in operational efficiency and a substantial reduction in net financial expenses,” Wilhelmsen said.
   Wilhelmsen reported that global transport of new cars and other light vehicles increased 4 percent in 2003.
   For 2004, Wilhelmsen said “markets for both car carrying and roll-on/roll-off still look very good, with Asia as a driver.” The market for car-carrying tonnage will probably remain tight in 2004 despite the large number of newbuildings due to be delivered during the year, it said.
   Overall results from the liner and car carrier business are expected to be at least on a par with 2003, and group results are predicted to be “rather better” than in 2003, the company said.