Wilh. Wilhelmsen ASA

Earnings Release • Nov 11, 2014

Wilh. Wilhelmsen Holding ASA - results for the third quarter 2014

Wilh. Wilhelmsen Holding ASA - results for the third quarter 2014

(Lysaker, 11 November 2014) A seasonal drop in

volumes transported deep-sea lead to a decline in

total income for WWH. Underlying performance is

expected to improve in the fourth quarter, despite a

continued challenging market for the group's

activities.

WWH delivered an operating profit of USD 83 million

(USD 96 million) based on a total income of USD 924

million (USD 913 million). Compared with the previous

quarter, the operating profit improved by 3%,

although the total income declined by 4%. When

adjusting for non-recurring items in Wilh. Wilhelmsen

ASA (WWASA) and Wilhelmsen Maritime Services (WMS)

operating profit fell 18%. Non-recurring items in the

third quarter included a gain in Hyundai Glovis and

impairment and restructuring in American Shipping and

Logistics, both related to WWASA.

"The third quarter is characterised by seasonality

for our shipping segment, including strike in Korea,

affecting both sales, production and demand for

transportation. Combined with an unfavourable cargo

and trade mix this lead to a 5% decline in total

income for our shipping segment compared with the

previous quarter," says Thomas Wilhelmsen, group CEO

in WWH.

The contribution from the group's logistics segment

was mixed: "The activity level fell, mainly as a

consequence of the loss of a major contract in

American Shipping and Logistics. However, the

underlying performance in the remaining logistics

entities are sound."

"Quarter on quarter, our maritime services segment

delivered a stable income adjusted for seasonality,

sales gain and currency. The operating profit was

negatively affected by unfavourable product mix in

ships service," says Wilhelmsen. "With a difficult

market, the operating margin was 6.3%, below our 9%

target."

Compared with the previous quarter, the Holding and

Investment segment delivered a decline in total

income, mainly related to reduced contribution from

NorSea Group.

The board expects the market sentiment to remain

challenging for the group's main activities. However,

the group's underlying performance is anticipated to

improve in the fourth quarter.

Elaborating on the market prospects, Mr Wilhelmsen

says: "Despite a slight expected increase in volumes

handled by our shipping and logistics segment, the

unfavourable cargo and trade mix will have a negative

effect on WWASA's profitability. The market for

maritime services is still hampered by slow global

growth and a generally weak shipping market."

WWH's board has, based on an authorisation granted by

the annual general meeting on 24 April 2014, resolved

to pay a second dividend of NOK 2.00 per share,

totalling USD 13.6 million. The shares will be traded

ex dividend on Friday 14 November. The dividend will

be paid on or about 27 November 2014.