STOCK MARKET HITS MOL’S NET PROFIT FOR 2002/2003
The slide of share prices on the Japanese stock market forced Mitsui O.S.K. Lines to announce that it will report a lower net income than expected for the fiscal year ended March 31.
MOL said that the poor performance of the Japanese stock market has meant “a larger than expected loss” in its investments, resulting in a net income lower than predicted.
The Japanese group estimates that its consolidated net income for the fiscal year ended March was about 11.5 billion yen ($96 million), 4 percent less than a forecast of Yen12 billion ($100 million) announced last November.
The lower net figure will still show an improvement when compared to the net income of Yen10.5 billion earned in the previous fiscal year, ended on March 31, 2002.
MOL said that it expects to report a higher ordinary profit than forecast for the year to March 31, 2003, although it will fall short of the comparable result for the previous fiscal year. The revised ordinary profit is now expected to be Yen32.5 billion ($271 million), up from a previous forecast of Yen25 billion ($208 million), but down when compared to the Yen37.4 billion profit earned in the year ended on March 31, 2002.
MOL also expects to report a group revenue of Yen910 billion ($7.6 billion) for the year, an increase from the Yen903.9 billion in revenue for the year ended on March 31, 2002.
MOL said that the liner market stayed at a high level for the second half of the fiscal year ended in March 2003, and it cut its running costs. The tanker market “showed a greater recovery than expected,” MOL added. These factors affected the group’s ordinary income for the year.
MOL will publish its final annual results on May 16.