MITSUI O.S.K. LINESÆ FIRST-HALF PROFIT FALLS
Mitsui O.S.K. Lines Ltd. said continued depression in freight rates and high crude oil prices combined to cause a 60.5-percent drop in the company's first-half net income.
Net income was Yen5.5 billion ($45 million) for the six-month period ended Sept. 30. Revenue slipped only 3.8 percent to Yen444 billion ($3.62 billion) while operating income also fell 60.5 percent to Yen14.7 billion ($120 million).
The company said slow recovery in U.S. and Asian economies failed to offset the low freight rates and oil prices, which have been impacted by Middle East tensions.
The liner division saw operating income drop 66.7 percent to Yen12.6 billion, despite increases in cargo volume and launched new large-scale containerships in major trade routes and started new services, mainly in Asia. MOL's bulk carrier and specialized carrier divisions, and tanker and liquefied natural gas carrier divisions also saw profitability declines. Revenue decreased 5.5 percent to Yen363 billion.
'Profitability of the container terminal business remained the same as in the first half of the previous year, owing to steady growth in cargo volume,' the company said.
For the second half of its current fiscal year, Mitsui O.S.K. Lines expects 'to see improved profitability in the liner division, thanks to a partial recovery in freight rates, rationalization of fleet deployment and route restructuring.' The company also anticipates a rebound in the bulk and specialized carrier and tanker markets.
Mitsui O.S.K. Lines anticipates fiscal year net income of Yen12 billion ($98 million), up from Yen10.5 billion in fiscal year 2001, and revenues of Yen910 million ($7.47 billion), up from Yen904 million.