WILHELMSEN REPORTS 42% DROP IN EARNINGS
The Wilh. Wilhelmsen ASA group reported a 42.1-percent drop in net income,
to $22 million for the first eight months of 1999.
Operating income for the period fell 57.5 percent to $34 million. The
company expects operating income "for the year as a whole to be clearly
down."
Gradual improvement in Wilhelmsen Lines business segment were offset by
rising bunker costs and weaker market conditions, the company said.
Wilhelmsen has seen "modest" results from its joint operating
company with Wallenius Lines. Wallenius Wilhelmsen Lines AS, which operates a fleet of
roughly 80 roll-on/roll-off ships, has been in operation since July 1.
Operating income of $27.9 million was virtually offset by costs
associated with restructuring. Wilhelmsen expects the joint company to
start showing improved results toward the end of 1999 and into 2000.
"Most costs related to the actual integration process have now been
taken, and synergies will become more visible as a better employment of tonnage is
achieved," The company said.