Wilh. Wilhelmsen ASA

Earnings Release • Feb 10, 2016

Wilh. Wilhelmsen Holding ASA (WWH): Results for the fourth quarter 2015

Wilh. Wilhelmsen Holding ASA (WWH): Results for the fourth quarter 2015

Wilh. Wilhelmsen Holding (WWH) reported stable top

line growth in the fourth quarter. Reduced

contribution from the logistics segment was offset by

a lift in income from the shipping and maritime

services segments.

WWH delivered a total income of USD 807 million in the

fourth quarter.

"Demand for sea transported volumes were soft in the

fourth quarter, and we did not see a pickup from the

seasonally weak third quarter. The suboptimal trade

and cargo mix combined with reduced bunker

compensation and rate pressure explained the flat

underlying performance in the fourth quarter," says

Thomas Wilhelmsen, group CEO at WWH.

The logistics segment reported a weak fourth quarter,

mainly due to lower income from Hyundai Glovis.

The maritime services segment delivered a solid

quarter. The top line improved by 11% compared with

the third quarter, and the operating profit was

positively impacted by the continued strong dollar and

accounting pension gain. Excluding the pension gain,

the adjusted operating margin was 11%.

WWH's operating profit ended at USD 96 million. The

third quarter included a provision of USD 200 million

related to the ongoing anti-trust investigations in

two joint ventures in Wilh. Wilhelmsen ASA and a USD

50 million impairment charge in Wilhelmsen Maritime

Services. When adjusting for non-recurring items, the

operating profit was down 3% quarter on quarter.

Net financials was an expense of USD 5 million. The

contribution from investment management was a gain of

USD 4 million, while net interest rate derivatives

were a gain of USD 13 million. The tax income was USD

37 million, reflecting deferred tax income related to

currency translation losses. Net profit after

minorities was USD 105 million or USD 2.27 per share

for the quarter.

WWH's board of directors has proposed an ordinary

dividend for the fiscal year 2015 amounting to NOK

3.00 per share to be resolved by the annual general

meeting on 3 May 2016. The proposed dividend is not

accrued in the year-end balance sheet, and if

resolved, will be payable in the second quarter of

2016. The board also proposes that the annual general

meeting authorises the board to pay additional

dividend of up to NOK 3.00 per share during the period

up to the next annual general meeting, though not

later than 30 June 2017.

Commenting on the outlook for the group, Mr Wilhelmsen

says: "The car and ro-ro markets are expected to

remain challenging, with pressure on profitability.

The new investments in land-based logistics services

will have a positive effect on operating profit going

forward. We expect the challenging offshore market to

continue to affect parts of the maritime services

portfolio, while most business areas will continue to

benefit from the strong USD."