Wilh. Wilhelmsen ASA

Earnings Release • May 12, 2016

Wilh. Wilhelmsen Holding ASA: Results for the first quarter of 2016

Wilh. Wilhelmsen Holding ASA: Results for the first quarter of 2016

Wilh. Wilhelmsen Holding (WWH) reported a significant

increase in operating profit, primarily driven by a

USD 80 million non-recurring gain from logistics

activities. The group's shipping activities and

maritime services segment recorded a softer quarter.

WWH delivered a total income of USD 848 million, while

the operating profit ended at USD 143 million. When

adjusting for non-recurring items, the total income

and operating profit was down 3% and 32% quarter on

quarter, indicating weaker underlying performance for

the group in total.

"Our logistics segment was positively impacted by a

non-recurring gain of USD 80 million related to an

acquisition of Vehicle Services Americas and CAT-WWL

in South Africa during the quarter. In addition, a

rebound in contribution from Hyundai Glovis also

helped improve our figures in first quarter," says

Thomas Wilhelmsen, group CEO at WWH.

"However, the shipping segment saw a sharp decline in

seaborne transportation. Auto volumes dropped 21%,

while high and heavy volumes increased 2% from a weak

fourth quarter. The continued suboptimal trade mix

also had a negative impact on results," says

Wilhelmsen.

The maritime services segment delivered a soft first

quarter, partly driven by seasonality. The total

income and operating profit fell by 11% and 50%

respectively compared with the fourth quarter.

Explaining the reduced contribution from maritime

services, Mr Wilhelmsen explains that: "The

challenging shipping markets continuous impacts ship

owners' purchasing capabilities and as such demand for

certain maritime services. In addition, the ships

service area was impacted by the implementation of a

new global ERP platform. The system performance and

usage is improving day-by-day, and we expect this to

stabilise during the second quarter."

The annual general meeting held 3 May 2016 approved a

dividend of NOK 3.00 per share to be paid on or about

13 May. The general meeting also authorised the board

to declare further dividend of up to NOK 3.00 per

share.

"Volume growth for our car and ro-ro services is

expected to remain weak. With new investments in land-

based services, the contribution from the logistics

segment will continue to grow. We expect the

challenging shipping and offshore markets to continue

to affect parts of the maritime services portfolio.

All in all, we expect the underlying business in the

second quarter to be in line with the first quarter,"

says Wilhelmsen when describing the outlook for the

group.