Wilh. Wilhelmsen ASA

Earnings Release • Nov 10, 2016

Wilh. Wilhelmsen Holding ASA: Results for the third quarter of 2016

Wilh. Wilhelmsen Holding ASA: Results for the third quarter of 2016

(Lysaker, 10 November 2016) Wilh. Wilhelmsen Holding

(WWH) reported a decrease in total income and

operating profit compared with the previous quarter.

During the quarter, the group made significant steps

towards restructuring its shipping, logistics and

maritime services activities.

WWH delivered a total income of USD 656 million, while

the operating profit ended at USD 62 million in the

third quarter. Total income and operating profit were

down from previous quarter, 8% and 19%, respectively.

"A drop in shipped volumes was mainly caused by

seasonality and strikes in Korea, which impacted

shipping revenues, while the logistics performance was

stable," says Thomas Wilhelmsen, group CEO at WWH.

On 5 September, Wilhelmsen signed a letter of intent

with Rederi AB Soya and Wallenius Lines AB to

establish a new ownership structure for their jointly

owned investments. Upon completion, the plan is for

WWH to own approximately 40% of the new entity, to be

named Wallenius Wilhelmsen Logistics ASA and based on

the existing listing of Wilh. Wilhelmsen ASA.

"Changing market dynamics and pressure on margins

enforce a fundamental change in how we manage our

joint ventures, especially within the shipping

segment," says Wilhelmsen.

For the maritime services segment, operating income

was down 4%, while operating margin and profit

improved. The main factor behind the improvement was

reduced expenses related to ongoing sales transactions

and restructuring processes. The sale of Callenberg

Technology Group to Trident Maritime Systems was

finalised in the fourth quarter.

Commenting on the restructuring, Mr. Wilhelmsen

says: "We are pleased that the sale of Callenberg has

been successfully completed. Now we focus on

completing the larger safety transaction with the

Survitec Group and continue to develop and grow the

remaining portfolio within maritime services."

Net result in the holding and investment segment was

down from previous quarter, mainly as a result from

reduced contribution from the Treasure ASA

shareholding in Hyundai Glovis.

The board decided a second dividend of NOK 2.00 per

share to be paid 28 November.

Summing up prospects, the board expects the general

business environment to remain soft, impacting most

group activities and performance.