NYK sees net income drop 36pc over first nine months
NYK has reported a consolidated net income of JPY48.66 billion (US$400.7 million) for the nine-month period from April 1 to December 31, 2006, down 36.1 per cent from JPY76.13 billion for the same period a year ago.
For the nine-month reporting period, revenues amounted to JPY1,602 billion, up 12.5 per cent from JPY1,423 billion the previous year, due to higher shipping volumes through fleet expansion and a weaker Yen.
Other factors such as revenue expansion in the logistics segment and conversion of Nippon Cargo Airlines into a consolidated subsidiary in the previous fiscal year also contributed to the growth in consolidated revenue, a company statement said.
On the other hand, operating income fell 35.9 per cent year on year to JPY76.98 billion, down from JPY120.02 billion in 2005. The decline was attributed to higher fuel costs.
A break down of the results for each business segment shows that the company's core liner business generated revenues of JPY431.56 billion, up from JPY403.03 billion for April to end December 2005.
Freight volumes in the liner trade were described as "firm" during the nine months under review. Freight rate recoveries in the Asia-Europe and Asia-Australia trades were said to be not enough to offset the impact of the rate declines from the end of 2005 through to the beginning of 2006.
The logistics division generated revenues of JPY351.65 billion during the nine- month period, up from JPY315.22 billion the previous year.
The stronger performance comes as NYK Logistics recorded significant increases in profits compared with the same period a year ago. The airfreight business handled by Yusen Air & Sea Service was, however, adversely affected by declining export demand from Japan, while overseas business remained robust.
The company now expects its net income for the whole of fiscal year 2006 ending March 31, 2007, will reach JPY65.5 billion on revenues of JPY2,122 billion, down from its November forecast of JPY68 billion.
For the nine-month reporting period, revenues amounted to JPY1,602 billion, up 12.5 per cent from JPY1,423 billion the previous year, due to higher shipping volumes through fleet expansion and a weaker Yen.
Other factors such as revenue expansion in the logistics segment and conversion of Nippon Cargo Airlines into a consolidated subsidiary in the previous fiscal year also contributed to the growth in consolidated revenue, a company statement said.
On the other hand, operating income fell 35.9 per cent year on year to JPY76.98 billion, down from JPY120.02 billion in 2005. The decline was attributed to higher fuel costs.
A break down of the results for each business segment shows that the company's core liner business generated revenues of JPY431.56 billion, up from JPY403.03 billion for April to end December 2005.
Freight volumes in the liner trade were described as "firm" during the nine months under review. Freight rate recoveries in the Asia-Europe and Asia-Australia trades were said to be not enough to offset the impact of the rate declines from the end of 2005 through to the beginning of 2006.
The logistics division generated revenues of JPY351.65 billion during the nine- month period, up from JPY315.22 billion the previous year.
The stronger performance comes as NYK Logistics recorded significant increases in profits compared with the same period a year ago. The airfreight business handled by Yusen Air & Sea Service was, however, adversely affected by declining export demand from Japan, while overseas business remained robust.
The company now expects its net income for the whole of fiscal year 2006 ending March 31, 2007, will reach JPY65.5 billion on revenues of JPY2,122 billion, down from its November forecast of JPY68 billion.