WWH Profits Up 48% in 2012

Shipping of high and heavy cargoes fell after a strong first half of 2012

Wilh. Wilhelmsen Holding ASA (WWH) [WLHSF] reports it increased its operating profit by 48 percent in 2012, to $601 million, thanks to a strong performance in shipping during the first half of the year, but its results were hurt by a downturn in volumes of "high and heavy" cargo like construction and agricultural machinery in the second half.

"Shipping was positively impacted by strong auto export volumes from Korea, while high and heavy cargo volumes, strong in the first half, slid in the latter months of the year," said CEO Thomas Wilhelmsen.

"This resulted in a negative cargo and trade mix that, together with weak performance from the US flag shipping operation affected group profitability."

In the second quarter of 2012, the company reported a 94 percent year-over-year increase in earnings before interest and tax (EBIT) to a historic high of $139 million.

The company's operating profit over the full year included a $134 million gain from sales of shares in Hyundai Glovis.

WWH's total income for the year was $3.9 billion, up from $3.5 billion in 2011, while fourth-quarter operating profit fell to $96 million from $103 million, and income for the quarter was $903 million, compared with $905 million in Q4 2011.

The company said its logistics and maritime services segments have grown, with vessel management reporting increased activity in the vessel lay-up niche.

Looking into the current year, the company said it expects shipping volumes and main marine services markets to remain soft over the next few months, but it says it is well positioned for growth in the long term.