NYK Line reported net income in fiscal year 2012, ending March 31, 2013, was 18.9 million yen (about US$229.52 million), jumping from a net loss of $884.5 million in fiscal year 2011, ending March 31, 2012.
Annual revenue was $23.0 billion, up 4.9 percent from $22.0 billion in the previous year.
The Tokyo-based container carrier predicted that net income in fiscal year 2013, ending March 31, 2014, will be $300.0 million, and revenue will be $23.2 billion.
Costs and expenses rose in fiscal year 2012 for NYK’s liner trade, primarily fueled by rising bunker oil prices, but slow-steaming of vessels and other cost-cutting measures made cost and expense ratio in revenue improve by 2.0 points year-over-year, the company said in a written statement. NYK Line implemented measures to cope with a slump in cargo shipping volumes, mainly to developed countries, and the increased delivery of large container vessels by rationalizing container vessel services.
Domestic and overseas container terminals’ total handling volumes declined compared to the previous fiscal year as a result of the restructuring and rationalization of services under new alliances for container vessel operations, the company explained. A portion of the segment’s assets was also disposed of and an impairment loss was booked in fiscal year 2012, resulting in the terminal and harbor transportation segment’s profits declining versus the previous year.
Nippon Cargo Airlines reported a loss for the year, driven by the “significant” impact of a slump in Japan-originated air freight demand and the associated decline in freight rates, NYK Line said.
Meanwhile, the logistics business was “relatively robust,” as sales gains in southern Asia and Oceania outweighed a “challenging business environment” in southern Europe, according to the company.