Ocean Wilsons falls on profit warning

Ocean Wilsons Holdings tanked in early morning trade on Monday following a profit warning delivered in a third-quarter update.

The company, which controls a Brazilian maritime services and logistics company known as Wilson Sons, as well as an investment portfolio said "profit for the full year may fall significantly short of current market forecasts".

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Wilson Sons' revenue for the nine months ended September 30th at $468.6m was 10% down on the previous nine months, which it blamed on the devaluation of the Brazilian Real against the US dollar.

Operating profit for the period plummeted by 29% to $55.8m, hit by lower revenues, as well as higher employee and depreciation expenses.

Earnings before interest, tax, depreciation and amortisation (EBITDA) for the period at Wilson Sons was $105.6m (2011: $120.9m). Wilsons Sons adjusted EBITDA (excluding the share based payment expense) for the period was $107.9m (2011: $113.2m).

Capital expenditure for the nine months of $135.6m (2011: $191.9m) was spent principally on the expansion of Tecon Salvador, the new Guaruj shipyard and vessel construction.

At September 30th, Wilson Sons' borrowings (including obligations under finance leases) was $549.1m (December 31st 2011: $491.1m) of which $504.5m is non-current.

At October 31st, the investment portfolio including cash under management amounted to $233.6m. The investment portfolio represents $6.61 (£4.09) per Ocean Wilsons share.

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