Wallenius Wilhelmsen reports EBITDA of USD 130 million, impacted by lower volumes in both the ocean and landbased segments related to Covid-19 and generally slower markets.
Total income was USD 834 million in the first quarter, down 18% compared to the same period last year as a result of lower revenues in both the ocean and landbased segments, caused by lower volumes. Ocean volumes were down 20% compared to same period last year, driven by a combination of impact from the Covid-19 pandemic generally slower markets for both auto and high & heavy going into 2020, and some impact from relinquished volumes. The landbased revenue is down on lower volumes due to OEM plant closures combined with generally slower markets.
“Our industry is caught in an unprecedented situation where business volumes are driven sharply down by closures and cuts in customer production due to Covid-19 measures and weakened demand. We have taken a range of actions to adjust capacity, reduce costs and protect our cash position through this turbulent phase. Combined with our strong financial situation going into this, I am confident that we will see through this crisis,” says Craig Jasienski, President & CEO of Wallenius Wilhelmsen.
In the very near term the company will be impacted by a sharp drop in volumes driven by measures taken globally to fight the Covid-19 pandemic. The current drop in volumes has created excess capacity in the industry, which is likely to persist for some time and delay any rate improvements. Measures taken to recycle, lay-up, idle and slow-steam ships will go some way in countering this effect.