Last updated: 10.02.2017

 

The shipping market

 

The total income from the shipping segment was USD 365 million, up 8% from the previous quarter, while the operating profit totalled USD 6 million. Adjusted for non-recurring items the operating profit totalled USD 37 million.

WWASA’s operating entities transported 16.2 million cubic metres (CBM) of cargo in the fourth quarter, a 7% increase quarter on quarter. Increased volumes in the fourth quarter had a positive effect on the operating profit. But the cargo mix and rate pressure continued to be unfavourable.

Net bunker cost was stable in the fourth quarter and for the full year. The bunker compensation (included in the total income) was slightly positive in the fourth quarter, but continued on a significantly lower level compared with the previous year.


Auto markets
In key markets, total light vehicle sales in the fourth quarter rose by 10% from the third quarter and increased by 5% compared with the same period last year. For the full year 2016, total light vehicle sales grew by 5% from 2015 and ended at a record
high sale of 93 million units.

In the US, auto sales were relatively stable in the fourth quarter, with a 0.7% drop compared with the third quarter and a 0.5% increase compared with fourth quarter 2015. For the year full 2016, auto sales of 17.5 million units were 0.3% higher than
what was recorded in 2015.

Sales in Western Europe in the fourth quarter were flat compared with the third quarter and 2% higher than sales in the fourth quarter 2015. In 2016, total auto sales grew 5.8% compared with 2015.

In Russia, the decline in the light vehicle market ended in the fourth quarter, although sales for the year were down 12% compared with 2015. Chinese car sales were very strong in the fourth quarter. Total sales in 2016 were 28 million units,
12% higher than in 2015.

Japanese car exports developed positively in the fourth quarter with a 13% growth quarter on quarter and a 6% increase year over year. For the full year,
4.2 million units were exported from Japan, which is 3% more than in 2015. Car exports out of Korea in the fourth quarter were 28% higher quarter on quarter, however 11% lower year over year. For the whole year of 2016, Korean car exports were 2.5 million units, 13% down from 2015.


 

High and heavy markets
The global construction equipment market continued its overall relatively soft development in the fourth quarter. Analysts’ market outlook for 2017 is positive, supported by various industry indices indicating expanding global demand for heavy
machinery.

The global demand for mining equipment remained flat at a low level in the fourth quarter. Commodity prices rose sharply in the last months of 2016.
Analysts forecast further consolidation of the mining
industry.

Global demand for agriculture equipment continued the weak trend in the fourth quarter compared with 2015. Analysts forecast 2017 equipment demand to
be flat.


The logistics segment
The total income and operating profit were USD 92 million and USD 6 million respectively. Due to internal cost allocations, the operating profit was weaker compared with the previous quarter.

However, underlying results improved. Contribution from all logistic sub-segments (terminals, technical services and inland distribution) were higher quarter on quarter.