Japanese lines hit hard in fiscal first quarter

Japanese lines hit hard in fiscal first quarter
   The financial downturn hit two of Japan's biggest ocean carriers hard in the first quarter of their fiscal year, with operating profit falling deep into the red for NYK Line, 'K' Line and MOL.
   The Japanese lines, whose fiscal year runs from April 1 through March 31, each saw revenue plummet more than 40 percent as well.
   NYK Line sustained an operating loss of $265.8 million in the first quarter, compared to $547.8 million in profit in the first quarter of its 2008 fiscal year. Revenue fell 44 percent to $3.96 billion. Net loss was $197.1 million, after the line made $417.8 million in the first quarter of 2008.
   'K' Line's operating loss was $230.5 million, after it earned $302 million in the first quarter of its 2008 fiscal year. Revenue sank 45 percent to $1.99 billion, while net loss totaled $155.1 million, a huge fall from the $202.8 million in net profit in the corresponding quarter last year.
   'K' Line said its loaded transpacific volume dropped 12 percent and its Asia/Europe volume fell 9 percent compared to its first quarter in 2008. Intra-Asia volume fell more steeply, at 20 percent, leading to an overall 15 percent decline in loaded containers.
   For MOL, operating loss in the first quarter was $127 million, compared to a profit of $689 million in 2008. Revenue fell 41.4 percent to $3.09 billion, while net loss was $135.5 million, down from $521.2 million in the first quarter of 2008.
   Neither MOL nor NYK released numbers on container volume, but MOL did say it is expecting revenue to be 3.6 percent and operating profit 37.5 percent less than it forecast on April 27. NYK and “K” Line both downgraded their earnings forecasts as well.
   The numbers for all the carriers reflect their total business, which includes dry bulk, car carrier, tanker and heavy lift fleets, as well as logistics services.