A weaker car market dragged down Wallenius Wilhelmsen's second quarter results,and might threaten its bottom line further.
Despite much higher Ebitda, the Oslo-listed ro-ro operator Wednesday reported a $3m net profit for the second quarter of 2019, from $23m a year ago.
The company reported that fuel compensation offset the cargo decline, but macroeconomic factors could continue to depress profits, despite its "balanced view" of its future prospects.
"[T]here is increased uncertainty around the volume outlook in light of weaker auto sales in all major markets, potential risk of increased trade barriers and a volatile macro picture," the company said.
"Market rates remain at a low level although a few contracts have been renewed at improved rates in the first half of the year."
Wallenius Wilhelmsen trumpeted its $211m Ebitda, which was $55m higher than the second quarter of last year.
"I am very happy to see that our efforts to improve our operations are continuing to bear fruit," chief executive Craig Jasienski said.
"While volumes are lower compared to one year ago, our Ebitda increased as we carry better-paying cargo and operate more efficiently.
"With the uncertain volume outlook and volatile macro environment we continue to focus on efficiency and flexibility in our operations and agility in our organisation to be able to respond to changes in the market."
