Japanese ocean carrier Mitsui O.S.K. Lines (MOL) today revised downward its consolidated business outlook for fiscal year 2011 that was issued on July 29, 2011.
MOL, the second largest Japanese shipping company by group revenue, has downgraded its revenue for fiscal year 2011 (April 1, 2011 to March 31, 2012) to US$18.3 billion (JPY1.45 trillion), down 3.3 percent from the predicted $18.93 billion (JPY1.50 trillion) on July 29.
Operating income is now zero from the earlier forecast of $441.92 million (JPY35 billion) and new net income outlook is negative $50.5 million (negative $4 billion) from the previous $214.65 million (JPY17 billion).
In the fiscal year 2010 ended March 2011, MOL had a group revenue of $19.49 billion, operating income of $1.56 billion, and net income of $735.8 million.
MOL in a statement said it downgraded its consolidated outlook for FY2011 in anticipation of “a significant deterioration in profit due to loss on valuation of investment securities caused by the decline in stock market prices” and falling container freight rates in the Asia-Europe and Asia-North America routes.
It has also been affected by a delay in turnover in the tanker market, and the ongoing appreciation of the yen, although the dry bulker market remains steady, it added.
