Wilhelmsen reports higher income
The roll-on/roll-off shipping business is recovering, said executives from the Norway-based Wilh. Wilhelmsen Group on Thursday.
“The major drivers are 32 percent increase in volumes year on year, with growth in all trades as well as higher capacity utilization,” said Jan Eyvin Wang, president and chief executive officer of Wilh. Wilhelmsen AS.
Wang is president of a new company created this summer that oversees the shipping and logistics business of Wilh. Wilhelmsen Holdings, which retains a 72.73 percent interest in Wilh. Wilhelmsen ASA. Wilh. Wilhelmsen ASA, in turn, is a 50-50 owner with Sweden’s Wallenius of the big car-truck carrier Wallenius Wilhelmsen, and the U.S.-flag carrier American Roll-on, Roll-off Carriers (ARC). They each also own 40 percent of car carrier company Eukor, with the remaining share held by Hyundai and Kia. Wilh. Wilhelmsen ASA also has interests in a number of other companies.
Wilh. Wilhelmsen ASA said it had second quarter net income, based on a proportionate method of accounting, of $724 million compared to $633.1 million in the same 2009 period.
Wang said cargo volumes carried by Wallenius Wilhelmsen, ARC and Eukor are all growing, and the three companies are increasingly discussing synergies, swapping cargo and vessels.
Eukor is benefiting from increased sales by Hyundai and Kia, and through winning more business to carry cars of other manufacturers that now represent 40 percent of Eukor’s business.
Wallenius Wilhelmsen is seeing higher volumes in all trades, said Wang, and the company continues to have a growing number of contracts that are not for only pure ocean transport, but inland transport as well.
Wang noted the world fleet of pure car-truck carriers comprises 649 vessels with 123 vessel on order. He said in recent years 144 ships have been scrapped, which has helped bring supply more in line with demand, but he said recycling of ships is slowing. ' Chris Dupin