This result confirms that operations in WW are going well and that income is record-high.
WW has written down the value relating to assets in Global Automotive Logistics SAS (GAL), parent company of Compagnie d’Affrètement et de Transport SA (CAT), by USD 25 million to zero because of continued weak results and an unclear financial position.
Wallenius Wilhelmsen Logistics (WWL - 50% owned by WW) owns 40% of CAT/GAL. WW has long warned that the position in the French logistics company is not good enough, and wrote down GAL by USD 14 million as early as the third quarter of 2005.
| Operating income |
664 |
516 |
| Net operating profit |
58 |
72 |
| Profit before taxes |
51 |
64 |
Operations are otherwise going very well for WW. Net operating profit for the group in the second quarter was USD 58 million. A decline of USD 14 million from the same period of last year reflects the CAT/GAL write-down. Adjusted for the CAT/GAL write-down, net operating profit for the second quarter came to USD 83 million. This represents an improvement of USD 11 million from the same period of 2005.
Total operating income for the second quarter reached a record USD 664 million as against USD 516 million for the same period of 2005.
Profit was USD 51 million before taxes compared with USD 64 million in the same period of last year, and USD 36 million after taxes as against USD 60 million.
| Operating income |
1 285 |
996 |
| Net operating profit |
132 |
126 |
| Profit before taxes |
127 |
138 |
Net operating profit for the first half of 2006 came to USD 132 million, compared with USD 126 million for the same period of last year. Adjusted for the CAT write-down, net operating profit for the period came to USD 157 million. This represents an improvement of USD 31 million.
Total operating income was USD 1.3 billion, up from USD 1 billion, while profit was USD 127 million before taxes compared with USD 138 million and USD 112 million after taxes as against USD 128 million.
Shipping once again made the biggest contribution to the group’s results. “We’re making effective use of cargo capacity on the vessels in a very good market,” comments Ingar Skaug, group CEO for WW. “That is giving us record results and contributing to our progress.”
The WW is maintaining the forecast made after the first quarter, and expects a profit after ordinary financial items for 2006 which represents an improvement on the year before.
The results given above are taken from the management report, which reflects the WW group’s underlying operations better than the official accounts. The same accounting principles are applied in both management report and official accounts, but the former utilises a different method for consolidating the group’s most important joint ventures. The presentation in the management report reflects proportionately the WW group’s partnership-based ownership structure. It provides more detailed information on total financial results achieved by the group through its various joint ventures.
» Link to press relase Q2 2006 (English)
» Link to report Q2 2006 (English)
» Link to press release Q2 2006 (Norwegian)
» Link to report Q2 2006 (Norwegian)
» Link to presentation Q2 2006 by Sjur Galtung
» Link to presentation Q2 2006 by Ingar Skaug