Wallenius Wilhelmsen

Earnings Release • Aug 7, 2014

Wilh.Wilhelmsen ASA - Results for the second quarter 2014

Wilh.Wilhelmsen ASA - Results for the second quarter 2014

(Lysaker, 7 August 2014) A seasonal increase in

volumes for both shipping and logistics positively

affected revenue for WWASA in the second quarter.

Adjusted for non-recurring items, operating profit

amounted to USD 79 million - a 46% increase quarter

on quarter.

For the second quarter, WWASA posted an operating

profit of USD 57 million, down 30% from the same

quarter in 2013 (USD 82 million), but up 6% compared

with the first quarter. The second quarter was

negatively affected by non-recurring items totalling

USD 22 million, of which USD 14 million was related

to restructuring costs in Wallenius Wilhelmsen

Logistics (WWL) and USD 8 million to reduction of

Scandinavian seafarers. Adjusted for these costs,

WWASA delivered an operating profit of USD 79

million, on par with the same quarter last year or up

46% compared with the first quarter.

Despite a slight decline year over year, a total

income of USD 682 million (USD 689 million)

represents a 7% increase in topline compared with the

first quarter of 2014.

"A seasonal growth in demand for seaborne

transportation lifted total volumes 11% from the

first quarter," says Jan Eyvin Wang, president and

CEO of WWASA. " We saw positive development in all

main trades. Like previous quarters, the cargo and

trade mix has been unfavourable for our fleet and

voyages costs are increasing to cater for customer

needs, limiting the improvement in our profitability.

The contribution from WWASA's logistics segment

improved. "Increased earnings in WWL and Hyundai

Glovis offset substantially reduced activity in some

of the group's US based logistics activities," says

Wang.

The board expects the slow volume growth trend to

continue into the third quarter, however with normal

seasonal variations and continued pressure on margins.

Elaborating on the prospects, Mr Wang says: "The

slow, but improved growth in demand for seaborne

transportation for auto and high and heavy equipment

the last quarters is expected to continue. However,

this need is normally somewhat weaker in the third

quarter, often characterised by labour strikes at the

car factories in Korea. Reduced activity level in

some of our logistics entities in the US will also

have a negative impact on earnings the next few

months."

"With volatility in demand for transportation,

improvement initiatives and efficiency programmes are

continuously implemented to improve the group's

profitability, including cost- and fleet optimisation

initiatives," Mr Wang concludes.

The Annual General Meeting (AGM) held 24 April 2014

resolved to pay a dividend of NOK 1 per share,

totalling USD 37 million. Dividend was paid to

shareholders 8 May.