NYK’s 1st quarter net profit down 43%

NYK’s 1st quarter net profit down 43%    NYK followed the disappointing results of compatriot shipping companies MOL and “K” Line, by posting a 43 percent drop in net income to Yen 12.35 billion ($107.2 million) in its fiscal first quarter ended June 30.
   NYK’s operating income decreased 38 percent to Yen 22.52 billion ($195.5 million despite revenue improving 22 percent to Yen 524.75 billion ($4.55 billion).
   In the container-shipping sector, NYK posted a revenue increase of 19 percent to Yen 146.16 billion ($1.27 billion) but said profits declined as a result of weaker rates and higher costs. “Efforts for freight-rate recovery didn’t reach targeted levels, except in some routes, and vessel-operating costs rose, reflecting surging bunker oil prices. As a result, earnings on liner trade vastly underperformed in comparison with the corresponding period of the previous year,” NYK said.
   Due to the lower freight rates and bigger fuel bill, NYK lowered its annual forecast like many other carriers of late, conceding the end of the latest up-cycle in shipping. NYK now expects net income of Yen 59 billion ($536.4 million), down 33.7 percent from its May prediction of Yen 89 billion. NYK raised its revenue forecast by 3.2 percent to Yen 2.08 trillion ($18.95 billion).