Monday, October 27, 2008

More for MOL

Mitsui OSK Lines (MOL) has posted a bigger interim profit, but has cut its annual earnings forecast as markets take a turn for the worse.

The Japanese owner, one of the big three in the country, said net profit in the six months to 30 September was JPY 124bn ($1.34bn), compared to JPY 87bn in the same half of 2007.


Revenues broke through the trillion barrier, reaching JPY 1.09 trillion, up from JPY 940bn a year ago.

It said bulker profits rose due to contracts banked during all-time highs in the summer, but rates fell sharply thereafter.

Crude tanker rates remained high in the period, and products carriers improved from July, leading to a slight rise in overall earnings.

The combined tanker and bulker division made an operating profit of JPY 171bn, against JPY 126bn in 2007.

The containership business was hit by weaker trade on key east-west routes, plus yen appreciation against the dollar and bigger fuel bills. Earnings were down at JPY 2bn from JPY 8bn the year before.

Profits for its domestic ferries fell due to higher bunker prices.

MOL cut its full-year net earnings forecast by 7% to JPY 195bn and its shares plunged 6.9% to JPY 379, its lowest close for more than five years.

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