Third quarter results 2010 for Wilh. Wilhelmsen ASA

Wilh. Wilhelmsen ASA (WWASA) records a significant increase in operating profit
and total income for the third quarter of 2010. An improved cargo mix and
operational efficiencies are key drivers behind the solid results.
 
Total operating profit for WWASA amounted to USD 58.9 million for the third
quarter of 2010, up from USD 26.5 million in 2009. Total income came to USD
507.5 million compared with USD 389.4 million last year. The result in the
group's shipping segment is the main driver behind the positive developments.
 
"The encouraging trend from the second quarter of 2010 continues into the third
quarter. Although volumes are slightly down due to seasonality, the growth in
high and heavy cargo volumes relative to cars gives us a more favourable cargo
mix and ultimately higher earnings," says Jan Eyvin Wang, president and CEO of
WWASA. "Compared with the same period in 2009, we see a volume increase of 27%.
We are especially pleased to see that cargo volumes from Asia to Europe have
more than doubled year on year and that the Asia to North America trade almost
trebled during the same period."
 
Increase in sea transportation also benefits the land-based logistics activities
of WWASA, which for most of the logistics companies resulted in higher activity
in the third quarter.
 
Group profit before tax and minority interests for the third quarter 2010 was
USD 7.4 million against USD 7.1 million last year. The increase in financial
expenses was mainly driven by lower gains on currency hedge instruments and
lower return on financial investments. Net loss after tax and minority interest
for the third quarter came to USD 68.0 million compared with a profit of USD
18.0 million for the corresponding period in 2009. The tax expenses were
negatively impacted by USD 83.0 million related to conversion of the
environmental fund to deferred tax due to the tax office's intention to turn
down WWASA's application for the new Norwegian tonnage tax regime.
 
Total operating profit for the first nine months of 2010 amounted to USD 135.0
million, up from USD 99.5 million in 2009. Total one-offs included in the group
operating profit for the first nine months of 2010 amounted to positive USD 6.5
million against positive USD 33.3 million last year. Adjusted for one-offs, the
total operating profit doubled for the first nine months of 2010 compared with
the similar period in 2009. Total income for the same period came to USD
1 427.8 million against USD 1 190.1 million last year.
 
The board of WWASA is pleased with the new structure of WWASA, which has
provided the group enhanced operational and financial flexibility, creating a
new platform for continued growth.
 
The board expects continued overall growth in cargo volumes during the fourth
quarter, followed by seasonal downturn into the early part of 2011.
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This information is subject of the disclosure requirements acc. to §5-12 vphl
(Norwegian Securities Trading Act)
 
[HUG#1460217]
 
Pressemelding Q3 2010: 
http://hugin.info/143231/R/1460217/399478.pdf
 
Q3 2010 presentation by Jan Eyvin Wang: 
http://hugin.info/143231/R/1460217/399476.pdf
 
Q3 2010 presentation by Benedicte B Agerup: 
http://hugin.info/143231/R/1460217/399477.pdf
 
WW ASA report Q3 2010: 
http://hugin.info/143231/R/1460217/399475.pdf
 
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Source: Wilh. Wilhelmsen ASA via Thomson Reuters ONE