Japan's NYK Line, has reported a 38.9 per cent drop in net profit for the first half of fiscal 2006 ending September 30 compared to the same period the previous year. Consolidated revenues in the reporting period amounted to JPY1.05 trillion (US$8.95 billion), a year-on-year increase of 17.1 per cent.In the six months, consolidated operating income amounted to JPY47.1 billion, a decrease of 41.5 per cent, while net profit dropped 38.9 per cent from JPY48.39 to JPY29.5 billion.
NYK said the revenue growth of 17.1 per cent reflected growing income from the liner trade and other shipping segments resulting from an expanded fleet size and increased shipping volume. The company said the freight market was "largely solid", but pointed out that "efforts for freight-rate recovery did not reach levels in the corresponding period of the previous fiscal year, even in the Asia-Europe route, where recovery was most successfully achieved". The shipping line said the freight market was still affected by the low rates prevalent from through the end of last fiscal year to the beginning of this year.
NYK said the revenue growth of 17.1 per cent reflected growing income from the liner trade and other shipping segments resulting from an expanded fleet size and increased shipping volume. The company said the freight market was "largely solid", but pointed out that "efforts for freight-rate recovery did not reach levels in the corresponding period of the previous fiscal year, even in the Asia-Europe route, where recovery was most successfully achieved". The shipping line said the freight market was still affected by the low rates prevalent from through the end of last fiscal year to the beginning of this year.
Once again, the company blamed the sharp rise in oil prices for raising operating costs, and as a result, earnings on the liner trade "underperformed "However, the report strikes a positive note saying that bunker prices, which persisted throughout the previous fiscal year, are expected to soften in the next six months. NYK said that a solid freight market in expected in the liner trade business, but added that while freight rate recovery will not reach the same level as in the previous year, earnings are expected to decline.
Looking ahead, the company has adjusted upwards performance expectations for the fiscal year ending March 31, 2007, by forecasting an increase in revenue to JPY2.1 trillion and a net profit of JPY68 billion.
Looking ahead, the company has adjusted upwards performance expectations for the fiscal year ending March 31, 2007, by forecasting an increase in revenue to JPY2.1 trillion and a net profit of JPY68 billion.