Wilh. Wilhelmsen profit slumps in 2007

Norway's Wilh. Wilhelmsen, which has interests in roll-on/roll-off carriers Wallenius Wilhelmsen Logistics, EUKOR, and American Roll-On Roll-Off, posted a profit of $6.9 million in 2007, down from $230.1 million in the previous year.

The company's shipping division posted a $76.2 million loss last year, compared to a profit of $172.2 million in 2006. The logistics division improved its performance with a profit of $31.9 million, compared to a deficit of $13 million a year before. WW's annual profit from marine services was 59 percent higher at $40.1 million, while its minority interests related holding division contributed $11 million profit, down from $45.8 million.

Wilh. Wilhelmsen's operating profit for 2007 dropped 27.7 percent to $266 million, while revenue gained 3.7 percent to $2.6 billion. Sales from shipping rose 14.9 percent to $1.65 billion. Logistics revenue in 2007 dropped 35 percent to $250.9 million with marine services up 20.3 percent to $707.3 million.

This confirms that underlying operations remain stable, the company said of its overall revenue growth.

Ingar Skaug, group chief executive of WW, said, We are making maximum use of our fleets in a market which remains strong. We also see that we're achieving a better balance between our three segments, since logistics and maritime services represent a steadily growing proportion of our earnings. We're well placed to meet a weakening in the world economy. We can exploit the fleet flexibly and respond quickly to market changes. Room also exists for further trimming of the organization and for securing synergy gains across our group companies.

WW expects profit for 2008, adjusted for special items, to be on a par with or better than 2007, the company said. 

Source:American Shipper