2Q Results for Wilh. Wilhelmsen

The Wilh. Wilhelmsen ASA (WW) maritime group released its result for the second quarter and the first half. WW has written down the value relating to assets in Global Automotive Logistics SAS (GAL), parent company of Compagnie d'Affrètement et de Transport SA (CAT), by $25m to zero because of continued weak results and an unclear financial position. Wallenius Wilhelmsen Logistics (WWL - 50% owned by WW) owns 40% of CAT/GAL. WW has long warned that the position in the French logistics company is not good enough, and wrote down GAL by $14m as early as the third quarter of 2005. Operations are otherwise going very well for WW. Net operating profit for the group in the second quarter was $58m. A decline of $14m from the same period of last year reflects the CAT/GAL write-down. Adjusted for the CAT/GAL write-down, net operating profit for the second quarter came to $83m. This represents an improvement of $11m from the same period of 2005. Total operating income for the second quarter reached a record $664m compared to $516m for the same period of 2005. Profit was $51m before taxes compared with $64m in the same period of last year, and $36m after taxes as against $60m. Net operating profit for the first half of 2006 came to $132m, compared with $126m for the same period of last year. Adjusted for the CAT write-down, net operating profit for the period came to $157m. This represents an improvement of $31m. Total operating income was $1.3b, up from $1b, while profit was $127m before taxes compared with $138m and $112m after taxes as against $128m. The WW is maintaining the forecast made after the first quarter, and expects a profit after ordinary financial items for 2006 which represents an improvement on the year before.