JAPAN's No 1 container carrier, Mitsui OSK Lines (MOL) posted an April-to-September net profit of JPY21 billion (US$213.5 million) drawn on 11.6 per cent more revenue to JPY845.1 billion, thus reversing from last year's net loss of JPY13 billion.
Operating profit reached JPY21.7 billion, versus the year-ago loss of JPN2.3 billion, said the MOL statement.
Like domestic rivals, NYK and "K" Line, MOL attributes its reversal from loss to cost control. MOL said it had reduced expenses by JPY17.5 billion or 55 per cent of its annual target through slow steaming, cutting cargo and office costs.
MOL also benefited from stronger capesize bulker rates, despite a lack of improvement in the panamax and handysize markets.
"Looking at conditions in the maritime shipping market, cargo volumes were brisk in the dry bulker market overall," said MOL president Koichi Muto.
But weaker container rates widened quarterly losses 46 per cent at MOL's box division to JPY3.8 billion year on year.
"In the containership market, the balance between supply and demand loosened due to a substantial number of deliveries of large containerships," Mr Muto said.
"Containership operators took action to limit the supply of vessels including the rationalisation of services. Nevertheless, freight levels fell," he said.
With depressed rates, MOL has cut its full-year forecast for the container division by JPY1.1 billion to an ordinary loss of JPY3.7 billion.
MOL's profit forecast remains the same, with full year net profit coming in JPY50 billion and revenues topping JPY1.7 trillion. But operating income is expected to fall by JPY10 billion to JPY50 billion because of foreign exchange conditions.
NYK, Japan's No 2 carrier, posted an April-to-September net profit of JPY20.5 billion (US$200 million) drawn on 15 per cent more revenue to JPY606.5 billion, thus reversing from last year's net loss of JPY4.1 billion,
The world's 12th largest carrier said its increase in both operating and recurring profits was due to "yen depreciation and lower bunker price", adding that "improved valuation and gain from sale of investment securities led to net profit."
Looking ahead, NYK said it expected an increase in cargo volume on both transpacific and Asia-Europe trades.
For the transpacific trade, the full-year forecast ending March 31 will be increased to 662,000 TEU for lifting volume, up six per cent year on year. For Asia-Europe route, the volume is expected to remain almost the same at 509,000 TEU by the end of March from 508,000 TEU a year ago.
"K" Line, Japan's No 3 carrier, posted an April-to-September net profit of JPY14.7 billion (US$150.75 million), drawn on 10 per cent more revenue to JPY606.5 billion, thus reversing the company from last year's net loss of JPY1.1 billion.
"The business environment remained unstable despite positive factors such as moderation of soaring fuel prices, which improved profitability and the correction of excessive appreciation of yen," said the world's 16th largest carrier.
With regard to containership segment, the carrier said the freight rates in containership sector remained at low levels, especially in European trades due to sluggish economy in Europe.
WORLD SHIPPING
01 November 2013 - 21:02
MOL, NYK and 'K' Line reverse from loss to profit through cost cutting
JAPAN's No 1 container carrier, Mitsui OSK Lines (MOL) posted an April-to-September net profit of JPY21 billion (US$213.5 million) drawn on 11.6 per cent more revenue to JPY845.1 billion, thus reversing from last year's net loss of JPY13 billion.
WORLD SHIPPING
01 November 2013 - 21:02
MOL, NYK and 'K' Line reverse from loss to profit through cost cutting
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