MOL’s box profits up 20% despite rising costs

MOL’s box profits up 20% despite rising costs Mitsui O.S.K. Lines said Thursday its container shipping operating income climbed 20 percent to Yen11.1 billion ($100 million) in its fiscal quarter ended June 30, despite numerous operational cost increases in terminal, railroad, canal, bunker and other expenses.
   The latest result from the Tokyo-based container-shipping arm compared with an operating income of Yen9.2 billion in April-June 2004.
   Commenting on its container shipping results for the quarter, MOL cited negative factors such as “increasing cargo terminal handling fees, inland railroad fees and canal tolls, in addition to rising bunker prices.”
   “However, trade on all routes remained strong, and cargo traffic and freight rates overall were higher than during the same period of the previous year,” MOL added.
   The Japanese group’s average bunker cost in the latest quarter was $238 per ton, up 35 percent from $176 a year earlier.
   The carrier’s container shipping arm reported a 15-percent jump in revenue to Yen103.8 billion ($939 million) in the latest quarter.    It said its container shipping business “covered increased costs by increasing loading volume (up 11 percent) and increased freight rate (up 7 percent).” These ensured an increase in profit, MOL added. Its operating margin as a percentage of container shipping revenue rose from 10 percent in April-June 2004 to 11 percent in the latest quarter.
   Including container shipping, bulk shipping and all other group activities, MOL reported a consolidated net income of Yen31.1 billion ($281 million) for April-June, up 37 percent, an operating income of Yen46.4 billion ($420 million), up 35 percent, and group revenues of Yen308.3 billion ($2.8 billion), up 11 percent.