A “severe market” outlook is projected by Nippon Yusen Kaisha (NYK Line) as the Japanese shipping firm plummets into net loss in the first-half, Seatrade Asia online reports. “In the second-half of the fiscal year (1 October 2011-31 March 2012), pressure to appreciating yen is expected to continue due to a stagnant US economy and financial instability in Europe. Additionally, bunker oil prices are expected to remain high,” NYK said.
It also forecast weaker cargo freight volumes due to the slowing global economic conditions, and the demand-supply balance has deteriorated due to the delivery of large-sized containerships.
In the first-half ended 30 September 2011, NYK swallowed a net loss of JPY12.06bn ($150.35m) as against a net profit of JPY44.37bn in the same period last year.
Revenue stood at JPY911.18bn compared to JPY1.01trn a year ago.
Against the backdrop of poor first-half results, NYK revised down its earnings forecast for the financial year ending 31 March 2012 to net loss of JPY18bn. The previous forecast was for a net profit of JPY5bn.
It also forecast weaker cargo freight volumes due to the slowing global economic conditions, and the demand-supply balance has deteriorated due to the delivery of large-sized containerships.
In the first-half ended 30 September 2011, NYK swallowed a net loss of JPY12.06bn ($150.35m) as against a net profit of JPY44.37bn in the same period last year.
Revenue stood at JPY911.18bn compared to JPY1.01trn a year ago.
Against the backdrop of poor first-half results, NYK revised down its earnings forecast for the financial year ending 31 March 2012 to net loss of JPY18bn. The previous forecast was for a net profit of JPY5bn.