WILH. WILHELMSEN INCREASES THIRD-QUARTER PROFIT

WILH. WILHELMSEN INCREASES THIRD-QUARTER PROFIT

   Wilh. Wilhelmsen ASA, the Scandinavian shipping group that owns 50 percent of Wallenius Wilhelmsen Lines, reported its net profit for the third quarter doubled, to $10 million, from $5 million in the same quarter in 2001.

   Net operating income increased slightly to $20 million, from $19 million. Gross revenue was virtually unchanged, at $147 million, as compared to $148 million in the third quarter of last year.

   “The liner and car-carrier business in Wallenius Wilhelmsen Lines recorded a positive third quarter,” Wilh. Wilhelmsen said.

   The parent company reported that Wallenius Wilhelmsen Lines is enjoying good availability of cargoes on most routes at present, but its operating income for the final months of the years is expected to be “rather weaker as a result of restructuring costs relating to ship conversions and to reorganizing part of the liner network.” These measures will eventually have a positive impact on results.

   Wallenius Wilhelmsen recently restructured its “round-the-world” service. It is withdrawing from the transpacific container trade and adding a Far East/Middle East service, as well as an intra-Asia service.

   Wilh. Wilhelmsen and Wallenius are also acquiring Hyundai Merchant Marine’s car shipping division and setting up a Korean corporation that will take over these activities.

   The cash price for the acquisition of the Korean business is $1.3 billion, and loan agreements totaling $1.05 billion were signed in Seoul on Oct. 31 with Korean and international banks, Wilhelmsen said.

   The Scandinavian group said synergies between the Korean car transport company and its own activities could raise the profit results of Wallenius Wilhelmsen.