For the second quarter alone, results doubled by comparison with the first three months. Underlying operations are strong, but the second quarter also normally ranks as the strongest three-month period for WW.

Liner and car carrier activities in Wallenius Wilhelmsen Lines (WWL) and EUKOR Car Carriers (EUKOR) made positive progress throughout the first half. The Barber International and Barwil service companies achieved good results overall. Financial income showed a positive trend during the second quarter, in line with developments in international stock markets. Tolteca Feeder Line, initiated in 2002, was wound up at a loss during the second quarter.

WW achieved an income after associates (operating income plus net income from associated companies) of USD 40 million for the first six months. This was rather better than in the same period of 2002.

However, underlying operations were stronger in 2003 when gains and special items are taken into account. Income after associates for April-June came to USD 27.6 million, while the corresponding figure for the first quarter was USD 12.5 million. Net group income at 30 June came to USD 32 million, as against USD 22.7 million for the same period of last year.

US interest rates on borrowing remain at historically low levels. Low financial expenses, combined with the fact that our financial portfolio has risen in line with developments in the world’s stock markets, mean that the net financial result for the group improved by USD 9 million from the first half of 2002.

Total operating income for the group was USD 460 million, which represents a substantial increase from the USD 391 million recorded for the first half of 2002.

Earnings per share improved by about 40 per cent compared with the corresponding period last year. That provides the basis for maintaining a shareholder-friendly dividend policy.
As mentioned above, a new item has been added to the accounts with effect from 1 January. It covers net income from associates for those companies valued in accordance with the equity method. This is because the steadily increasing contribution to results from associated companies relates more closely to operations than to financial items. As part of the 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 the change in accounting presentation are described in greater detail in the balance sheet and income statement.

The interim accounts have otherwise been prepared in accordance with the same principles as the annual accounts and with the Norwegian Accounting Standard for interim reporting.

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