NYK LIFTS PROFITS, REVIEWS STRATEGY

   Nippon Yusen Kaisha, the largest Japanese shipping group, reported large increases in operating profit and net profit for the six-month period ended on Sept. 30.
    Operating income rose by 60 percent, to Yen23.8 billion ($223 million), from Yen14.9 billion in the period April 1-Sept. 30, 1998.
    Net income more than quadrupled, reaching Yen9.8 billion ($92 million), as compared to Yen2.2 billion in the corresponding period of last year.
    Revenue was Yen345.9 billion ($3.2 billion) in the latest six-month period, up from Yen341.5 billion in the same period of 1998.
    NYK said that its liner division improved its performance. The division benefitted from higher eastbound transpacific freight rates. Liner shipping generates about 39 percent of group revenues, compared to 42 percent in April-September 1998.
    The group’s "tramp and specialized carrier division," which includes dry bulk, car-carrier and other activities, continued to face "a severe situation" in the April-to-September period. But the bulk market has since "picked up gradually" thanks to the Asian economic recovery and anticipation of new grain shipments, NYK said.
    The company’s tanker division faced production cutbacks by oil-producing countries and overtonnaging.
    NYK said that it is reviewing its group strategies as part of the recently announced "break through 21" reorganization program. The group expects to formulate "a blueprint as a global logistics megacarrier."