Wilhelmsen Holdings Felt the Draught in Q2 2013
Operating profit in the second quarter of 2013 was down compared with the second quarter of 2012 when the shipping industry was in less troubled circumstances.
Operating profit for the second quarter totalled USD 106 million (USD 139 million) based on a total income of USD 903 million (USD 972 million). Compared with the previous quarter, the operating profit was up 37% while the revenue increased 4%. The figures were down 23% and 7% respectively, when comparing with a historically strong period in the shipping segment in the second quarter of 2012.
“We have seen higher activity levels in our main business segments. The major driver is a 13% increase in volumes transported deep sea. Combined with a sound development in the cargo and trade mix and gains from operational efficiency initiatives, Wilh. Wilhelmsen ASA’s total income and operating profit improved by 6% and 22% respectively quarter on quarter,” says Thomas Wilhelmsen, group CEO in WWH, when summing up the second quarter.
He continued: "The income from our maritime services activities was stable quarter on quarter and up 37% in earnings lifted by a substantially stronger margin for ships services. The technical solutions area continued to grow with increased order intake, while ship management had a slight reduction in vessels on full technical management.”
Commenting on future prospects, Mr Wilhelmsen says: “We anticipate that volumes to be shipped by WWASA will remain at present level in the second half of the year. We will therefore continue to actively optimise and adjust tonnage to market demand. A generally weak shipping market impacts owners’ purchasing capabilities and put pressure on demand and operating margin, especially in the maritime services segment.
The gradual increase in newbuild ordering activity and the global merchant fleet is, however, expected to continue to drive demand for maritime services."
About the Group:
Wilh. Wilhelmsen ASA offers global car and ro-ro customers high quality sea transportation and integrated logistic solutions from factory to dealer through its operating companies.
The shipping segment in which the group’s and the joint venture’s shipping activities are carried out, includes shipowning, chartering, transportation and consultancy services.
The logistics segment includes logistics services conducted by the group and the joint ventures such as terminal services, technical services, inland distribution and supply chain management.