Fri 13 Feb 2015 16:41

Wilh. Wilhelmsen Holding posts fourth quarter results


Total Q4 income fell 4 percent quarter-on-quarter and 5 percent year-on-year.



Wilh. Wilhelmsen Holding (WWH) today published its fourth quarter results, revealing that total income had fallen 4 percent quarter-on-quarter and 5 percent year-on-year.

In a company press release, Thomas Wilhelmsen, CEO of WWH, discussed likely reasons for the fall in income, saying: "Despite an increase in deep sea volumes, our cargo mix continued to be unfavourable. Combined with less contribution from Hyundai Glovis this led to a decline in income in our shipping and logistics segment."

Despite the fall in total income, WWH saw a 72 percent quarter-on-quarter rise in operating profit. Profit rose from $83 million in the third quarter of 2013 to $142 million in quarter four. Speaking in the company's press release, WWH attributed the rise to the termination of a benefit plan for Norwegian employees as well as lower bunker costs, the strong dollar, and cost-cutting measures.

"The main reason behind the increase was a termination of the defined benefit plan for Norwegian employees, resulting in a substantial non-recurring accounting gain. Lower bunker costs, cost reducing initiatives and the strong dollar also contributed positively to our operating profit compared with the third quarter," WWH said.

Total income for Wilhelmsen Maritime Services (WMS), a subsidiary of WWH, was $269 million for the fourth quarter of 2014, 2 percent more than the same period in 2013 but 2 percent less than the third quarter in 2014. Operating profits for WMS were $58 million, up substantially from the $20 million reported in quarter three. The earnings report attributes this to the termination of the benefit plan for Norwegian employees, which resulted in an accounting gain of $35 million.

The company's board has proposed to pay a dividend of NOK 3.00 per share in May 2015 with a second dividend of the same amount later in the year. This decision will need to be approved at the annual general meeting, which is scheduled for 23 April.

The WWH board expects the group's activity level to remain at a similar level in 2015. Wilhelmsen explained the board's forecast in the company's press release: "Volumes transported deep sea and handled at our logistics facilities will remain flat, adjusted for seasonality. The cargo mix continues to be unfavourable. Low bunker price, a strong USD and improvement initiatives should have a positive effect on our profit. The underlying sentiment for maritime services is positive, but the market sentiment will continue to have an impact on general purchasing activities."

The full quarterly report and fourth quarter presentation are available on the group's website.

Wilh. Wilhelmsen ASA is a global maritime group with its headquarters in Lysaker, Norway. The group's shipping operations specialise in roll-on roll off cargo, though the group also provides logistics services on land. WWH operates in 73 countries and employs roughly 16,000 people.

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