(Lysaker, 7 May 2015) Wilh. Wilhelmsen ASA (WWASA)
delivered higher operating profit in the first
quarter. Despite a seasonal decline in transported
volumes, improved cargo and trade mix combined with
cost reductions and a gain from sale of shares
contributed to improved earnings.
The total income for WWASA totalled USD 609 million
for the first quarter with the operating profit
ending at USD 98 million. With a net financial
expense of USD 46 million and a tax income of USD 5
million, the group delivered a net profit after tax
and minority interests amounting to USD 56 million.
Earnings per share was USD 0.26, on par with the
fourth quarter.
Commenting on the topline development, Mr Jan Eyvin
Wang, president and CEO of WWASA says: "The slight
reduction in total income compared with the previous
quarter was mainly related to a seasonal decline in
shipped auto volumes and lower bunker compensation
from customers. Auto volumes declined in all trades,
except for the Asia to Europe trade, while high and
heavy volumes increased in all main trades. The
cargo- and trade composition had a positive impact
on our profitability."
The underlying activity level and contribution from
the logistics segment were on par with the fourth
quarter. "Terminals, inland distribution and supply
chain delivered results are on par with the previous
quarter, while lower results in Hyundai Glovis
offset increased contribution from technical service
facilities," says Wang.
Compared with the fourth quarter, the group's
operating profit increased 28%. "Reduced
administrative costs, lower voyage expenses and
improved operational efficiencies lifted our
operating profit in the first quarter," says
Wang. "The group's total income and operating
profit were also positively affected by a non-
recurring gain of USD 26 million stemming from the
reduction from 12.5% to 12% ownership in Hyundai
Glovis."
WWASA's annual general meeting held on 23 April 2015
resolved to pay a dividend of NOK 1 per share,
totalling NOK 220 million. The share traded ex
dividend on 24 April and the dividend is expected to
be paid to shareholders on 7 May. The board also
received an authorisation from the annual general
meeting to pay additional dividend limited up to NOK
1.25 per share. The authorisation is valid until the
annual general meeting in 2016, although not longer
than 30 June 2016.
The forecasted growth for light vehicle sales is
modest for 2015, while the demand for high and heavy
equipment is expected to stay in line with 2014.
Based on the market outlook, the board of WWASA
expects higher auto volumes in the second quarter,
while high and heavy volumes are expected to remain
flat. Logistics activities are anticipated to be on
par with the first quarter.