Wilh. Wilhelmsen doubled net income in 2004

Wilh. Wilhelmsen doubled net income in 2004

   Norway-based Wilh. Wilhelmsen, a major shareholder in Wallenius Wilhelmsen Lines, American Roll-on/Roll-off and Eukor, doubled its net income in 2004 to $155 million, with record results from its ro/ro, car-carrier and project shipping division.

   The latest annual group earnings compare with a net income of $72 million in 2003 and $54 million in 2002.

   Group revenue at Wilh. Wilhelmsen rose 12 percent to $1.1 billion in 2004, including its ro/ro-car-project, ship management and agency activities.

   “Our car, ro/ro and project cargo business achieved a significantly better result in 2004 than the year before,” Wilh. Wilhelmsen said. Net income from this unit nearly doubled to $139 million in 2004 from $72 million in 2003, with revenue up 11 percent to $935 million. The operating margin of the car-ro/ro-project unit amounted to 14 percent of revenue in 2004, up from 11 percent in the previous year.

   Wilh. Wilhelmsen said the improved car-ro/ro-project results primarily reflects better capacity utilization in the most important trades, improvements in operational efficiency and a substantial reduction in net financial expenses.

   Global transport of new cars and other light vehicles increased 9 percent in 2004, led by a growth of 40 percent in volumes between Korea and Europe. In cargo categories other than vehicles, global demand for construction and agricultural machinery was “particularly high in 2004,” Wilh. Wilhelmsen added.

   Wallenius Wilhelmsen Lines (WWL), jointly owned with Sweden-based Wallenius, operates a fleet of 60 vessels and ranks as one of the world’s largest companies for shipping cars and other rolling cargo. In 2004, WWL transported 1.5 million cars in addition to agricultural and construction machinery and project cargoes.

   In the fourth quarter, Wilh. Wilhelmsen increased its group net income 43 percent to $43 million. The car, ro/ro and project cargo segment again made the strongest contribution in the fourth quarter, with a quarterly net income of $27 million.

   On the logistics, terminal and land-based transport side of WWL, 40-percent owned Compagnie d’Affretement et de Transport, based in France, contributed $1 million to group net income in 2004. Other logistics activities include U.S.-based American Auto Logistics and American Logistics Network, companies owned 50-50 by Wilh. Wilhelmsen and Wallenius. Wilh. Wilhelmsen’s 50 percent holding in U.S.-flag American Roll-on/Roll-off Carriers contributed $11 million to net income for 2004.

   Since January, Wilh. Wilhelmsen agency and ship management arms, Barwil and Barber, have been merged into Wilhelmsen Maritime Services. Wilhelmsen Maritime Services expects its operating results to improve in 2005, but will incur restructuring costs from the merger.

   Commenting on prospects for 2005, Wilh. Wilhelmsen said high costs for chartered tonnage and bunkers could have a negative impact on results. Yet, its results from the car, ro/ro and project cargo unit are expected to reach “a somewhat higher level” than in 2004, the Norwegian group said.