Earnings Release • Aug 8, 2017
Earnings Release
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Wallenius Wilhelmsen Logistics ASA: Q2 2017 results
Oslo, August 8, 2017 - Earnings (EBITDA) for the second qu
quarter 2017, adjusted for extraordinary items, increased co
compared with previous quarter. Transported volumes in
increased and costs decreased for the ocean business, while th
the positive development in the landbased business co
continued. The merger restructuring was completed during the qu
quarter, together with initial procurement initiatives, so th
that approximately half of the targeted USD 100 million in sy
synergies can be confirmed. Realization of the remaining sy
synergies will however take more time, and a downward trend in
in rates combined with market overcapacity will continue to pu
put pressure on the ocean segment.
Total income for WWL ASA was USD 912 million in the second
quarter, while earnings (EBITDA) ended at USD 106 million,
down 26% from USD 143 million in the previous quarter.
However, the second quarter of 2017 included negative
extraordinary items of USD 82 million related to the merger,
including a USD 62 million non-cash loss on previously held in
interest in joint ventures, and organizational restructuring co
costs of USD 20 million. Adjusted earnings (EBITDA) came in at
at USD 188 million, an underlying improvement of 32% co
compared with previous quarter.
"We are pleased to see this improved result, driven by an
increase in transported volumes for the ocean business and
reduced costs. On the other hand, we are still faced with
pressure on rates. We have completed the organizational
restructuring, and together with initial procurement
initiatives we can confirm approximately half of the
targeted annualized synergies, which will gradually come
into effect," says Craig Jasienski, President & CEO of WWL AS
ASA.
The positive development in the landbased segment continued
and was mainly driven by terminal services improving in line
with overall ocean volumes, and by technical services due to
stable volumes in a declining market and an increase in
value-adding services in the USA.
In June 2017, WWL ASA subsidiary WWL AS reached a settlement
with Mexico's Federal Economic Competition Commission
(COFECE), agreeing to pay a fine of USD 4 million as part of
the conclusion of their anti-trust investigation into the car car
car carrier industry. WWL AS had made a provision for the outcome
outcome of the investigation in 2016, and the fine did not have a
have a profit and loss effect for 2017.
The board expects the merger to have a positive impact on WWL A
WWL ASA profitability. The organizational restructuring is compl
completed and realization of synergies are well under way, but t
but the remaining synergies will take more time to achieve. The U
The USD 100 million target is maintained with full effect from
from 2019. Even if this will positively impact the business, the b
the board remains cautious about the outlook as the recovery in th
in the high & heavy segment remains slow and no significant impro
improvement for large mining shipments is expected before 2019.
2019. In addition, continued rate pressure combined with some
some overcapacity in the market will continue to put press
pressure on the ocean segment.
The WWL ASA Q1 2017 results presentation will be held at
August 9at 08:30 CET, and is available on webcast here: ht
http://webtv.hegnar.no/presentation.php?webcastId=58380163
About Wallenius Wilhelmsen Logistics ASA
Wallenius Wilhelmsen Logistics ASA is a global logistics operator
operator serving the manufacturing industry with special focus on
focus on vehicles, mining and construction equipment and machiner
machinery. The company brings together the shipping and logistic
logistics businesses of EUKOR Car Carriers, WWL AS and American
American RoRo Carriers.
For more information see www.walleniuswilhelmsen.com
For further information, contact:
Bjørnar Bukholm, Head of Corporate Finance and Strategy & IRO
IRO Tel +47 980 72 778 (mob)
email: [email protected]
Anna Larsson, Head of Corporate Communication & CSR Te
Tel: +47 484 06 919 (mob)
email: [email protected]
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