JAPAN's Mitsui OSK Lines (MOL) has posted a quarterly loss of JPY7.3 billion (US$71 million) for its container shipping business in the second quarter, compared to a loss of JPY1.1 billion in the same quarter last year.
The company said container freight rate levels on transpacific and Asia-Europe trades remained "elusive".
MOL blamed overcapacity on transpacific and Asia-Europe routes, as well volume weakness on the South America east coast route. Yet revenues for the container division rose 7.3 per cent to JPY175 billion on higher volumes.
The loss brought unwelcome attention of ratings agency Moody's, which is considering a downgrade after MOL lowered its earnings guidance for the fiscal year by a third.
Moody's said MOL had lowered its ordinary profit guidance from JPY50 billion to JPY20 billion to reflect continued weakness in box shipping and dry bulk.
The company had expected a return to profitability in container shipping in 2015 after three consecutive annual losses, but now expects the box business will return a loss of JPY5.5 billion.
WORLD SHIPPING
05 August 2014 - 21:33
MOL posts US$71 million loss, cuts forecast, Moody's talks downgrade
JAPAN's Mitsui OSK Lines (MOL) has posted a quarterly loss of JPY7.3 billion (US$71 million) for its container shipping business in the second quarter, compared to a loss of JPY1.1 billion in the same quarter last year.
WORLD SHIPPING
05 August 2014 - 21:33
MOL posts US$71 million loss, cuts forecast, Moody's talks downgrade
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