NOL posts $139 million 3Q loss
Neptune Orient Lines posted a $139 million loss in the third quarter ended Sept. 30, which represents a downward swing of $174 million from the net profit of $35 million it earned in the same period of 2008.
The Singapore-based container shipping and logistics company said Thursday its revenue slid by 34 percent in the quarter to $1.56 billion from $2.35 billion in the year-earlier period.
NOL said it expects “adverse business operating conditions” to continue. “In view of the severity of the downturn in container shipping, the company expects to incur significant losses in the fourth quarter of 2009 and at least through the first half of next year,” it said in its earnings announcement.
At the core EBIT level NOL posted a loss of $115 million for the third quarter.
On a year-to-date basis, for the first three quarters of 2009, NOL has reported cumulative net losses of $530 million.
“The third quarter saw a continuation of adverse business operating conditions,” said NOL Group President and Chief Executive Officer Ronald D. Widdows. “Despite some improvements in certain trades, container shipping freight rates remain at uneconomic levels.”
In the third quarter, volumes carried by NOL’s container shipping business APL were 6 percent lower year-on-year at 586,000 40-foot containers.
This was due to declines in volume in Europe and Americas trade, partially offset by growth in Asia/Middle East trade. Over the last four weeks of the quarter, volumes were 1 percent higher compared to the corresponding period last year.
APL’s average third-quarter 2009 overall headhaul utilization level was 93 percent, compared to 90 percent in the year-earlier quarter.
Average revenue per FEU in the quarter was 29 percent lower year-on-year, mainly due to freight rate deterioration across all major trade lanes combined with lower bunker recovery.
Third-quarter revenue from container shipping was down year-on-year by 36 percent at $1.31 billion. APL posted a core EBIT loss of $140 million for the quarter.
APL Logistics maintained its positive contribution to the group’s performance, delivering core EBIT of $17 million in the quarter, a decline of less than $1 million, in the face of a year-on-year decline in revenue of 26 percent, to $234 million.
The logistics unit cut operating costs by 29 percent and general and administrative expenses by 11 percent, resulting in core EBIT margin improvement to 7.3 percent in the quarter from 5.7 percent last year.
The terminals business segment achieved positive core EBIT of $8 million in the quarter, which was down 65 percent form the year-earlier quarter, reflecting lower volume throughput, particularly in its U.S. West Coast facilities. Terminals revenue in the quarter was $123 million, 16 percent lower year-on-year.
The Singapore-based container shipping and logistics company said Thursday its revenue slid by 34 percent in the quarter to $1.56 billion from $2.35 billion in the year-earlier period.
NOL said it expects “adverse business operating conditions” to continue. “In view of the severity of the downturn in container shipping, the company expects to incur significant losses in the fourth quarter of 2009 and at least through the first half of next year,” it said in its earnings announcement.
At the core EBIT level NOL posted a loss of $115 million for the third quarter.
On a year-to-date basis, for the first three quarters of 2009, NOL has reported cumulative net losses of $530 million.
“The third quarter saw a continuation of adverse business operating conditions,” said NOL Group President and Chief Executive Officer Ronald D. Widdows. “Despite some improvements in certain trades, container shipping freight rates remain at uneconomic levels.”
In the third quarter, volumes carried by NOL’s container shipping business APL were 6 percent lower year-on-year at 586,000 40-foot containers.
This was due to declines in volume in Europe and Americas trade, partially offset by growth in Asia/Middle East trade. Over the last four weeks of the quarter, volumes were 1 percent higher compared to the corresponding period last year.
APL’s average third-quarter 2009 overall headhaul utilization level was 93 percent, compared to 90 percent in the year-earlier quarter.
Average revenue per FEU in the quarter was 29 percent lower year-on-year, mainly due to freight rate deterioration across all major trade lanes combined with lower bunker recovery.
Third-quarter revenue from container shipping was down year-on-year by 36 percent at $1.31 billion. APL posted a core EBIT loss of $140 million for the quarter.
APL Logistics maintained its positive contribution to the group’s performance, delivering core EBIT of $17 million in the quarter, a decline of less than $1 million, in the face of a year-on-year decline in revenue of 26 percent, to $234 million.
The logistics unit cut operating costs by 29 percent and general and administrative expenses by 11 percent, resulting in core EBIT margin improvement to 7.3 percent in the quarter from 5.7 percent last year.
The terminals business segment achieved positive core EBIT of $8 million in the quarter, which was down 65 percent form the year-earlier quarter, reflecting lower volume throughput, particularly in its U.S. West Coast facilities. Terminals revenue in the quarter was $123 million, 16 percent lower year-on-year.