NYK cuts profit projections from US$744 million to $143 million

JAPAN's NYK Line has revised cut its earnings expectations for the fiscal year ending March 31, which were expected to total US$744 million in January.

But the company has since anticipated profit would be closer to $143 million. As the economic slowdown focused on Europe and the US has intensified, the liner trade has been impacted by falling freight volumes and a marked drop in freight rates, and bulk shipping has suffered a decline in numbers of voyages due to a dry bulk market slump and cooling demand for iron and steel, said an NYK statement.

NYK's earnings, particularly in the liner trade and bulk shipping segments, have been weighed down as conditions in the dry bulk market have plummeted since summer 2008, and the effects of the financial crisis have markedly impacted the real economy, said the company.

Source: Schednet