Tuesday, November 1, 2011

MOL suffers US$214.7 million half-year LOSS as sales FALL 11.9pc


JAPAN's biggest container carrier, Mitsui OSK Lines (MOL), has posted a JPY4.82 billion (US$214.7 million) loss in the six months ending September 30 following a 11.9 per cent decline in revenue to JPY$717.3 trillion against a JPY48.2 billion profit loss suffered the year before.

"While the economies of the developed countries weakened, high growth continued in the emerging economies despite there being a slowing of growth stemming from monetary tightening amid concerns of inflation," said the MOL statement accompanying the results.

"In the US, personal consumption remained stagnant against the backdrop of the ongoing unemployment rate, the housing market remaining a rock bottom and soaring natural resources and energy prices.

"In Europe, the economy was weakened by insecurity of the financial system and austere fiscal policy in each country caused by sovereign risk. Exports also dropped, which resulted in low growth

"In China, although the rate for growth faltered as a result of monetary tightening measures to curb inflation, firm economic expansion continued.

"As for containerships, freight rates fell for the east west trade route because of lower than expected cargo trade and fuel costs increased as a result of rising bunker prices which put enormous pressure on the bottom line," MOL said.

"As a result, business performance over the first six months deteriorated considerably compared with the same period of the previous fiscal year and a loss was recorded.

"Regarding containerships, freight rates dropped as demand weakened amid lower than expected cargo trade in the east west trade route, and fuel costs increase due to rising bunker prices. [MOL suffers US$214.7 million half-year loss as sales fall 11.9pc]

source: Shippingazette.com / picture: google.com