Stable top line, but decline in operating profit for
Wilh. Wilhelmsen Holding (WWH) in the first quarter
due to weaker profitability in the group's shipping
and logistics activities. The contribution from
maritime services improved, supported by higher
activity levels. The second quarter is expected to be
better than the first quarter.
Total income for WWH was USD 914 million for the
first quarter of 2014. Top line was up 2% when
comparing with the same quarter last year and 2% down
from the fourth quarter. The group's operating profit
for the first quarter was USD 76 million, down 2%
compared with the first quarter of 2013 and a
reduction of 7% from the previous quarter.
"Lower shipping operating profit in the first quarter
follows a reduction in auto volumes combined with an
unfavourable trade mix. Seasonality and bad weather
also contributed to less volumes transported," says
Thomas Wilhelmsen, group CEO in WWH. "A decline in
contribution from Hyundai Glovis reduced the
operating profit for the logistics segment, adding to
a weaker result for WWASA."
The maritime services segment saw a continued
positive development from the previous quarter. "The
contribution from Wilhelmsen Maritime Services (WMS)
improved supported by increased sale of maritime
products for Wilhelmsen Ships Service, a high order
book for Wilhelmsen Technical Solutions and minor
acquisitions. The margin also improved within main
business areas," says Wilhelmsen.
The income development within Holding and Investments
segment was mixed, with seasonality reducing
contribution from NorSea Group.
The annual general meeting (AGM), held 24 April 2014,
approved a dividend of NOK 3.00 per share will be
paid on or about 8 May.
The board expects a modest improvement in the group's
performance in the second quarter compared with the
first quarter.
Commenting on the forward-looking statement, Mr
Wilhelmsen notes: "Although the short term demand for
deep sea transportation is modest, WWASA expects the
second quarter to be stronger than the first quarter.
For maritime services, we see that the general
sentiment has improved, but the recent recovery in
main shipping markets remain fragile. The Holding and
Investment segment will continue to contribute
positively to group accounts."