Japan’s Nippon Yusen Kabushiki Kaisha (NYK Line) lost $91.68 million on a consolidated basis in the first quarter of fiscal 2011, which started on April 1, compared with a net profit of $294.79 million a year earlier.
NYK Line’s group revenue sank 11.3 percent in the April-June quarter from the same three-month period last year to $5.74 billion.
The company suffered a group operating loss of $133.49 million in the April-June quarter, compared with a group operating profit of $513.60 million a year earlier.
“Reviewing the global economy, the U.S. failed to show clear recovery, while Europe was beset by concerns over debt and other fiscal issues, and China continued its credit-tightening policy,” NYK Line said.
Meanwhile, the company said yen appreciation continued, bunker oil prices increased and the Japanese earthquake fractured supply-chains, especially those involving finished cars, the company said.
“Container freight rates softened during the quarter due to oversupply concerns with the completion of new large-sized container vessels,” NYK said.
“Freight rates in the dry bulk and tanker markets continued to be weak due to a growing supply of new vessels. Overall shipping operations remained sluggish in the quarter,” the company said.
However, the group’s non-shipping business, including terminal and harbor transport, and air cargo, was profitable in the quarter.
“While we will maintain reduced vessel speed operations and cost reduction efforts, concerns remain regarding the yen’s appreciation beyond our assumptions, fuel price hikes, economic slowdown in the U.S., fiscal uncertainties in Europe, and monetary tightening in China,” the company said.
NYK Line revised downward its group revenue and profit forecasts for the whole of fiscal 2011, which had been announced on April 28.
The company’s new full-year projections are: $24.68 billion in group revenue, down 0.2 percent from fiscal 2010; $256.41 million in group operating profit, down 83.7 percent from fiscal 2010; and $64.10 million in group net profit, down 93.6 percent from fiscal 2010.
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