NYK suffers US$150 million first half loss, expects losses to widen
NYK LINE, Japan's second largest container carrier, has followed MOL and "K" Line in posting half year losses - in its case, a US$150.3 million loss with an estimate of full-year decline of $225 million. Wednesday, 02.Nov.2011, 13:20 (GMT+3)
NYK LINE, Japan's second largest container carrier, has followed MOL and "K" Line in posting half year losses - in its case, a US$150.3 million loss with an estimate of full-year decline of $225 million.
From April to September, revenues shrank 9.8 per cent to $11.35 billion while costs rose 0.4 per cent. Operating losses totalled $120.4 million against an operating profit of $961 million in the same period last year.
The carrier's container business posted a loss of $86 million, compared with an operating profit of $213 million a year earlier. Liner revenue was down 12.1 per cent to $1.4 billion.
North American and European trades suffered from declining rates due to overcapacity, said NYK. South American trades had a good supply-demand balance in the past six months, but rates were weak.
For the full fiscal year ending March 30, 2012, NYK lowered its group-wide revenue forecast 5.5 per cent to $22.7 billion, expecting an operating loss of $131 million and a $280 million loss on recurring operations.
The world's 11th biggest carriers said running in the red was due to strong yen and weak global economy with "tepid" container volume, overcapacity and falling rates. The operating environment has been very harsh over the past six months and is expected to be difficult next year.
NYK projects the yen will stay strong against the dollar and the bunker prices will remain high. A strong yen impairs the performance of Japanese carriers because revenues are mainly in US dollars while most of their expenses are in yen.
Also, the recent flooding in Thailand will have negative impact on its car carrier volumes, said NYK, but its dry bulk section is promising, while the tanker division is suffering from a supply-demand imbalance due to the deployment of new vessels.