Wilhelmsen off road in slowdown

The Lysaker-based owner said reduced volumes in car, as well as high and heavy, resulted in an operating profit for the period of US$36.4m, compared with US$59.9m during the same period last year.
It blamed the continued weakness in the global economy and the considerable drop in ocean transportation of cars and ro-ro cargo.
It also said that state-funded infrastructure projects had yet to materialise, resulting in the continued decline in high and heavy shipments.
The company has continued with its contingency plans and has to date scrapped two of its vessels, laid up 11 and redelivered 18 back to charterers.
Wilh. Wilhelmsen’s operating companies also have the option to redeliver an additional 36 vessels through to 2012.
Further opportunities for recycling, idling, lay-up and redelivery of tonnage will also be pursued, the company stated.
Wilh. Wilhelmsen’s shipping operations are run in conjunction with a number of other companies, notably Sweden’s Wallenius Lines, with WWL, ARC and Eukor.
Cargo volumes for both operations dropped significantly and Wilhelmsen also wrote down US$7.9m due to its 21.5% stake in Eidsiva.
During the quarter the operating companies took delivery of three newbuildings, of which one was contracted by Wilhelmsen and have a total orderbook of 28 vessels, eight of which are from Wilh. Wilhelmsen.
As of April 30, the three operating businesses controlled 151 vessels, compared to 160 one year previously, although total capacity was down only 1%.