Wilh. Wilhelmsen's joint ventures (JVs) have reached a settlement with Brazilian authorities in an ongoing antitrust investigation as decreased volumes dented the company’s profit quarter-to-quarter.
The Oslo-listed owner said a latest agreement with the Brazilian Administrative Council for Economic Defence (CADE) will see WWL and EUKOR pay $3.9m and $4.9m respectively.
CADE was investigating WWL and EUKOR over alleged cartel activities in the car carrier market.
Weak third quarter
The company reported a net profit of $26m in the third quarter, which marked an improvement from last year’s loss of $212m but was at the same time lower than the $392m profit in the second quarter.
Jan Evyin Wang, president and chief executive of Wilh. Wilhelmsen, said: “The underlying third quarter result was weak mainly due to low contribution from the shipping segment.
“Volumes declined by 9% from the previous quarter, and the cargo mix continued to be suboptimal given our advanced fleet.
“A comprehensive strike in the automotive industry in Korea caused a bigger decline in transported volumes than anticipated.”
The company noted that its logistics segment produced a more stable performance than the shipping division.
To mitigate the pressure on car carrier rates, Wilh. Wilhelmsen has decided to redeliver time charter tonnage, slow-steam and send ships to green recycling.
Wang added: “We do not see any clear signs of volume growth in the remaining quarter of 2016.
“We also expect a continued pressure on margins. The global political landscape adds further uncertainties to the picture.”
