Three factors in particular had a negative impact – very high bunkers costs, vessel conversions and the weakness of financial markets.

WW achieved an operating income of USD 9 million for the first three months, compared with USD 12 million in the same period of 2002. Net group income came to USD 6 million as against USD 9 million in the first quarter of last year. Total operating income for the group came to USD 222 million, compared with USD 200 million in January-March 2002. A substantial increase in other operating revenue compared with the first quarter of 2002 relates to expanded involvement in inland activities in the USA.

A new item has been added to the accounts with effect from 1 January. This covers net income from associates for those companies valued in accordance with the equity method. This move has been prompted by the consideration that the steadily increasing contribution to results from associated companies is more closely related to operations than to financial items. As part of this change, the accounting presentation of the Wallenius Wilhelmsen Lines (WWL) investment in Compagnie d’Àffretement et de Transport SA (CAT) has been changed from proportionate
consolidation to the equity method with effect from the same date. The consequences of these changes in accounting presentation is described in greater detail in the balance sheet and income statement.

The quarterly accounts have been prepared in accordance with the same principles as the annual accounts and with the Norwegian Accounting Standard for interim reporting.
Ingar Skaug, the former head of WWL, took over on 1 January as chief executive of WW in succession to Wilhelm Wilhelmsen, who became chair of the company from the same date.

Please find the complete report under Related links on the right.