MOL lowers earnings forecast

MOL lowers earnings forecast MOL said it is revising its earnings forecast downward for the current fiscal year because of “significant drops in the dry bulker market, containership freight rate market and cargo trade, and seaborne trade of completed cars.”
   The company said it now expects to have a consolidated profit of 130 billion Japanese yen ($1.45 billion) in the fiscal year ending March 31, 33 percent lower than the 195 billion yen ($2.17 billion) it previously predicted. In the period ending March 31, 2008 it had consolidated profit of 190.3 billion yen ($2.12 billion).
   Consolidated revenue for the fiscal year is now forecast to be 1.9 trillion yen ($21.1 billion), 7.3 percent less than the 2.05 trillion yen ($22.8 billion) it had predicted. Last fiscal year the company had consolidated revenue of 1.95 trillion yen ($21.7 billion).
   The company said the declines “stem from deteriorating demand for raw materials such as iron ore, a drop in global consumer spending, and a drain of funds from the market due to tighter credit resulting from a global economic downturn after the Lehman Brothers collapse. Also, a rapid and progressive yen appreciation from late 2008 was a factor in a large decline in ordinary income.”