Wilh Wilhelmsen still weak

November 3, 2009

Thomas Wilhelmsen

Wilh Wilhelmsen has seen its third quarter operating profit drop to $47.8m a 42% fall on the $83.1m recorded through the corresponding period of last year.

The Oslo-listed company said total income was about $605m, a reduction of $262m or 30% compared to the same period last year.

“The current market puts severe pressure on earnings for the shipping segment. However, the third quarter shows signs of market recovery, albeit at a slow pace,” says Thomas Wilhelmsen, deputy group CEO, when commenting on the 7% increase in cargo volumes (cubic metres) from the second to the third quarter.

“The market affects our shipping companies very differently. Compared with last year, Wallenius Wilhelmsen Logistics has experienced a substantial drop in volumes and change in cargo composition and trades. EUKOR Car Carriers and American Roll-on Roll-off Carrier deliver satisfying results and have not experienced a similar drop in volumes. We predict that the current low inventory levels and effects of governmental stimulus programmes will impact cargo volumes going forward, but the effect is at present uncertain,” says Wilhelmsen.

The logistics and maritime services segments are to a lesser degree affected by the present market conditions. Sales are down, but results are keeping up compared with the same quarter last year.