Wilh Wilhelmsen ASA saw its first quarter results fall short of expectations with a downturn in the car carrier market denting returns.
Oslo-listed WW ASA booked an operating profit of $126m, up from $66m in the previous three months, aided by an $80m one-off boost from its logistics division.
Jan Evyin Wang, chief executive of the shipowner, said: "The volumes in the first quarter fell substantially compared with the previous quarter.
“The reason was partly seasonality. Transportation of cars fell sharply, while high and heavy equipment improved slightly from an already weak fourth quarter.
“We also saw the effects for EUKOR following reduced volumes according to the new Ocean Carrying Contract.”
DNB Markets said the company’s first quarter results were significantly weaker than expected, with adjusted operating profit missing consensus by 14%.
“We recommend taking advantage of a likely 5% drop in the share price on 13 May and buy ahead of the Glovis spin-off on 8 June, which should re-rate the stock,” analysts Nicolay Dyvik, OIyvind Berle and Petter Haugen wrote in a report.
Erik Nikolai Stavseth of Arctic Securities says the first quarter is likely to represent the annus horribilis for the shipping side of the business.
