Wilh. Wilhelmsen ASA

Earnings Release • Feb 13, 2014

Wilh. Wilhelmsen Holding ASA - results for fourth quarter 2013

Wilh. Wilhelmsen Holding ASA - results for fourth quarter 2013

The fourth quarter saw a positive growth in volumes

transported deep sea and continued growth in the top

line for the group's maritime services segment. The

prospects for the first quarter of 2014 are broadly

in line with the activity level in the fourth quarter

of 2013.

Operating profit for the fourth quarter of 2013 was

USD 82 million (USD 96 million) based on a total

income of USD 893 million (USD 903 million). The

operating profit for the quarter was negatively

impacted by an accrual related to a draft cease and

desist order which the partly owned Wilh. Wilhelmsen

ASA (WWASA) company Wallenius Wilhelmsen Logistics

(WWL) received in January 2014 (WWASA's accrued share

is USD 16.5 million). The group's performance was

slightly above the third quarter adjusted for non-

recurring items.

"Shipping volumes increased in the fourth quarter. As

expected, car volumes improved more than high and

heavy volumes. There was also a positive development

in all main trades, except Asia to Europe still being

affected by low European demand," says Thomas

Wilhelmsen, group CEO in WWH. "The activity level in

our logistics segment was slightly down due to

seasonality, but more or less offset by higher

contribution from Hyundai Glovis and increased inland

distribution volumes for WWL."

Total income improved for the maritime services

segment, although the operating profit was stable

quarter on quarter. "The operating margin is below

our long term target for the segment," says

Wilhelmsen. "We do however see a positive

development, supported by larger orderbooks and minor

acquisitions within technical solutions."

In the group's third segment, Holding and investment,

operating profit was down from the third quarter

despite a strong contribution from financial

investments lifting the net result.

A total dividend of NOK 5.50 was paid in 2013. The

board has proposed that the annual general meeting

(AGM), to be held 24 April 2014, approves a dividend

of NOK 3.00 per share to be paid on or about 8 May.

Following last year's changes to the Norwegian

Companies Act, the board will also propose that the

AGM gives the board authority to approve further

dividend of up to NOK 2.50 per share for a limited

period up to the next AGM.

"We expect a modest start to the year for our

shipping and logistics activities," says Wilhelmsen

when commenting on future prospects. "Car volumes

will develop more positively than the demand for high

and heavy transportation. Combined with uncertainty

related to US logistics activities and a general

margin pressure in both shipping and logistics, a

continued focus on efficiency measures is needed."

For the maritime services segment, the revenue

prospects are fairly stable short term. "While the

market sentiment is improving, a continued weak

shipping market impacts owners' purchasing

capabilities and put pressure on demand and operating

margin. However, we welcome the positive development

in the global newbuilding orderbook implying a

continued growth in the merchant fleet and

consequently an increased demand for maritime

services," concludes Wilhelmsen.

On group level, the board expects the activity level

in the first quarter of 2014 to be broadly in line

with the fourth quarter of 2013.