By the start of World War II, the company owned 30 ships. With World War II, the company was again forced to surrender nine ships to the Navy, including "Manoora" and "Manunda" which became an Armed Merchant Cruiser and a hospital ship. "Manunda" was in Darwin harbour during the Japanese bombing and was able to bring 260 military and civilian casualties to safety in Fremantle. During the war she carried about 30,000 sick and wounded back to Australia from the Middle East and New Guinea. During the 1940s, a decline in trade necessitated the company to diversify and they began to acquire interests in other companies and projects. Consequently, after the war, the company diversified into towage, shipbuilding, and the shipping of salt, coal and sugar.