“The continued global economic weakness has had a significant negative impact on demand for ocean transportation of cars and ro-ro cargo, which is reflected in an abrupt decline in operating income and operating profit for our shipping segment. Volumes are also down for the logistics segments, but adjusted operations resulted in a stable operating profit for the segment,” says group CEO Ingar Skaug at WW.
“Based on an outlook of continued weak volumes and consequently a tonnage overcapacity, we will continue to adjust our fleet to available cargo volumes through redelivery, lay ups and dismantling of vessels,” says Skaug.
The maritime services segment has to a lesser degree been affected by the deep cyclicality in the shipping segment.
“For Wilhelmsen Maritime Services, the overall activity level in the merchant fleet has remained reasonably strong and the past quarter has not been severely impacted by announced fleet dispositions,” says Skaug.
The net operating profit for the WW group came to USD 36.4 million for the first quarter of 2009, compared with USD 59.9 million for the corresponding quarter of 2008. The operating profit year-to-date is negatively affected by a write down of WW’s shares in Eidsiva with USD 7.9 million. The total operating income for the WW group amounted to USD 606.9 million as against 819.4 million.
Group profit before tax and minority interests was USD 31.9 million in the first quarter of 2009, compared with USD 4.5 million for the similar period in 2008, while profit after tax and minorities came to USD 31.8 million as against USD 1.6 million.
“The global economic uncertainty and weakness continues, affecting our markets and the group. We implemented efficient measures to meet the challenging markets during the first quarter of 2009, and we will continue to pursue necessary actions to meet the volatile market conditions going forward,” says Skaug.
The WW ASA board maintains the expectation that the global economic downturn will have a strong negative impact on the group’s operating profit in 2009 compared with 2008.