Wilh. Wilhelmsen earnings, revenue slip on weaker ro-ro volumes

Wilh. Wilhelmsen earnings, revenue slip on weaker ro-ro volumes

Norway’s Wilh. Wilhelmsen ASA posted weaker earnings and revenue for the third quarter as the auto and project shipping and logistics group saw a seasonal decline in ocean freight volumes and an unfavorable cargo and trade mix.

Operating profit dipped 15 percent to $66 million in the three months through September from $78 million in the same period in 2013, and revenue was down 3 percent at $650 million.

The third-quarter result included a non-recurring gain of $12 million in Korea-based Hyundai Glovis and non-recurring expenses of $10 million related to American Shipping and Logistics Group.

The Oslo-listed company booked a net profit of $55 million, compared with $60 million in the third quarter of 2013.

Total sales of light vehicles in key markets declined 7 percent to 16 million units quarter-to-quarter, with sales in North America and Europe falling after strong growth in the second quarter.

Chinese sales were still strong, but decreased after a prolonged period of growth.

Japanese manufacturers exported around 1 million cars in the quarter, up 5 percent on the preceding three months, but down 5 percent on the same period in 2013. Korean exports were down 20 percent quarter-to-quarter because of labor strikes.

There was an overall 8 percent decline in deep-sea cargo volumes from the previous quarter.

Wallenius Wilhelmsen Logistics, which is 50 percent owned by the Norwegian company, and its 40 percent-owned Eukor Car Carrier are among companies involved in antitrust investigations of the car-carrying industry in several jurisdictions, including the U.S. and the European Union.

Wilh. Wilhelmsen and its partner companies, including Sweden’s Wallenius Lines, own or operate 146 ships accounting for nearly a quarter of global car-carrying capacity.

Contact Bruce Barnard at brucebarnard47@hotmail.com.