Japan’s three largest ocean carriers raised their profit forecasts for the next six months as they reported improved results for the July-September quarter.
NYK, MOL and “K” Line credited higher rates and volumes for container shipping and car carriers, along with slow-steaming and other cost-cutting measures. The diversified carriers said those measures offset the impact of higher fuel costs, softness in some bulk and tanker markets and the recent appreciation of the Japanese yen.
Recovery in container shipping volume and rates, including collection of peak-season surcharges, was key to increased profitability, the companies said.
NYK is No. 10, MOL No. 13 and “K” Line No. 14 on the JOC list of Top 15 Container Fleet Operators.
NYK reported recurring profit from liner operations of $182.5 million, converted from yen, compared with a loss of $189 million a year earlier, as revenue soared 54 percent to $1.47 billion. MOL recorded ordinary income from liner shipping revenue of $200 million, compared with a loss of $184.7 million a year earlier, as container revenue increased 45 percent to $1.875 billion. “K” Line’s operating income from container shipping totaled $193 million, compared with a loss of $285 million a year earlier, as revenue rose 36 percent to $1.5 billion.
NYK reported group-wide net income for the quarter of $246 million, compared with an $11 million loss in last year’s second quarter, as revenue rose 33 percent to $5.8 billion. MOL’s group net income totaled $554 million, reversing a $105 million loss a year earlier as group revenue jumped 28.5 percent to $9.6 billion. “K” Line’s group net income was $121 million on revenue of $3.1 billion.
The carriers based their increased profit forecasts for the second half of their April-March fiscal years on expectations of gradual economic recovery and continued efforts to bolster rates and cut costs. NYK raised its overall profit forecast 3.3 percent from its July projection and boosted its container profit forecast 4.3 percent. MOL kept its group-wide profit forecast unchanged but raised its forecast of container profit 40 percent from the July forecast. “K” Line raised its group-wide profit forecast 21 percent.
NYK, MOL and “K” Line credited higher rates and volumes for container shipping and car carriers, along with slow-steaming and other cost-cutting measures. The diversified carriers said those measures offset the impact of higher fuel costs, softness in some bulk and tanker markets and the recent appreciation of the Japanese yen.
Recovery in container shipping volume and rates, including collection of peak-season surcharges, was key to increased profitability, the companies said.
NYK is No. 10, MOL No. 13 and “K” Line No. 14 on the JOC list of Top 15 Container Fleet Operators.
NYK reported recurring profit from liner operations of $182.5 million, converted from yen, compared with a loss of $189 million a year earlier, as revenue soared 54 percent to $1.47 billion. MOL recorded ordinary income from liner shipping revenue of $200 million, compared with a loss of $184.7 million a year earlier, as container revenue increased 45 percent to $1.875 billion. “K” Line’s operating income from container shipping totaled $193 million, compared with a loss of $285 million a year earlier, as revenue rose 36 percent to $1.5 billion.
NYK reported group-wide net income for the quarter of $246 million, compared with an $11 million loss in last year’s second quarter, as revenue rose 33 percent to $5.8 billion. MOL’s group net income totaled $554 million, reversing a $105 million loss a year earlier as group revenue jumped 28.5 percent to $9.6 billion. “K” Line’s group net income was $121 million on revenue of $3.1 billion.
The carriers based their increased profit forecasts for the second half of their April-March fiscal years on expectations of gradual economic recovery and continued efforts to bolster rates and cut costs. NYK raised its overall profit forecast 3.3 percent from its July projection and boosted its container profit forecast 4.3 percent. MOL kept its group-wide profit forecast unchanged but raised its forecast of container profit 40 percent from the July forecast. “K” Line raised its group-wide profit forecast 21 percent.