Wilh Wilhelmsen Profit Soars 135 Percent

Wilh Wilhelmsen Profit Soars 135 Percent

Wilh Wilhelmsen’s third quarter operating profit surged 135 percent to $175 million on strong growth in the Norwegian car carrier’s trade lanes out of Japan and from Europe to China.

The company’s booking of a $70.4 million gain from the sale of Qube-Kaplan related logistics investments in Australia in exchange for 88 million shares in Qube Logistics also boosted profit.

Excluding the sale gains, operating profit increased $30.3 million, or 40.8 percent year-on-year, while total income was up 33.6 percent at $953.8 million.

The strong performance was mainly due to Wilh Wilhelmsen’s stake in Oslo-quoted Wilh Wilhelmsen ASA. The car carrier experienced strong volume growth in its key trade routes and saw improved cargo mix, high fleet utilization and operational efficiency.

WWASA’s profit jumped 44.3 percent in the third quarter to $91 million on a 9.8 percent increase in income to $644 million.

Ocean volumes were slightly down quarter-over-quarter. “However increased auto exports out of Japan, strong exports from Europe to China and continued high volumes to Oceania improved the group’s trade mix,” said Jan Eyvin Wang, CEO of WWASA.

Volumes may slip in the coming six months due to fiscal uncertainty in Europe and the ripple effect on global financial markets. “The BRIC countries are expected to stay strong including export from Europe to China, whilst exports to Europe may weaken,” Wang said.

WWASA controlled 133 ships at the end of September for a 22 percent share of the global car carrying fleet.

-- Contact Bruce Barnard at brucebarnard47@hotmail.com.