Asia/Pacific News
MOL Widens Net Loss on Reform Initiative
Mitsui O.S.K. Lines [TYO:9104] (MOL) recorded a net loss of ¥178.8 billion ($1.9 billion) in its fiscal year 2012, which ended March 31, 2013, as it enacted structural reforms.
The company reported an operating loss of ¥15.8 billion ($167.6 million) on revenues of ¥1,509.1 billion ($16 billion), compared with a ¥24.5 billion ($251 million) loss on revenues of ¥1,435 billion ($14.7 billion) in FY2011.
MOL said global economic conditions, combined with a continuing oversupply of vessels, hurt the shipping industry over the year.
Over the coming year, the company said it anticipates continuing stagnation in Europe, a "gentle recovery" in the U.S. and strong growth in China, India and other developing countries.
While demand in the dry bulker market should increase slightly, the company said, vessel oversupply will continue to make the market difficult.
MOL also predicts an uncertain crude carrier market but more strength in product tankers, and it says slow steaming and reduction in service frequency should improve the containership market.
For the 2013 fiscal year, MOL said it is seeking savings of ¥31.5 billion ($323 million).
The company recently announced a cost-cutting initiative, along with plans to take advantage of a weakening yen.
