NYK profits up 105% for fiscal year

NYK profits up 105% for fiscal year    Tokyo-based Nippon Yusen Kabushiki Kaisha (NYK) boosted its profits 105 percent to record net earnings of Yen71 billion ($664 million) in the year ended March 31, helped by the container and bulk cargo boom in mainland China.
   China also helped Japan’s largest shipping line increase its group revenue 15 percent in the April 2004-March 2005 fiscal year, to Yen1.6 trillion ($15 billion), from Yen1.4 trillion in the previous fiscal year. Over the same period, NYK’s operating profit climbed 76 percent to a record Yen161 billion ($1.5 billion), from Yen92 billion.
   “Revenues, operating income, income before extraordinary items and net income all reached record highs,” NYK said.
   K. Nagai, spokesman for NYK in Tokyo, said the Chinese cargo boom was the biggest factor underpinning the company’s improved results.
   “The China influence was not only on the container business, but also tramp (bulk) figures,” he said. China has exported large volumes of containerized household goods to North America and Europe, imported more iron ore bulk imports from Brazil and Australia, and shipped in crude oil from the Middle East, he added. The diversified Japanese groups is involved in all three shipping segments.
   NYK said the 15-percent increase in its group revenue for 2004-2005 reflected higher freight volumes and rates in the shipping segment, as well as higher revenues from logistics operations.
   The Japanese group does not break down its profits by shipping division, but said its liner shipping arm increased its revenue 19 percent to Yen452 billion ($4.2 billion) in the fiscal year 2004-2005. Favorable demand and tighter supply in the liner trades, increased freight rates, and cost reductions in liner shipping resulted in “substantial gains in both revenues and income,” NYK said.
   NYK saw its logistics business increase revenue 21 percent to Yen357 billion ($3.3 billion). Air cargo demand was strong, but performance for some logistics businesses “fell below planned levels” due to congestion on the U.S. West Coast, the Japanese group said.
   For the current fiscal year due to end on March 31, 2006, NYK predicted further increases in net profit and revenues, but a slight decline in operating income. It expects net income of Yen90 billion ($857 million), operating income of Yen155 billion ($1.5 billion) and revenue of Yen1.7 trillion ($16 billion).