Japanese shipping company NYK Line has lowered its forecast for the interim and full year consolidated financial results.
Based on the previous forecast for the interim results covering April-September 2018 period, NYK Line said its anticipated revenue was JPY 905 billion and a profit of JPY 8 billion (around USD 72 million). However, these figures have been cut to JPY 890 billion worth revenues and a profit of JPY 3 billion, down by 62.5 percent.
For the full year ending March 31, 2019, the revenue has been downgraded from JPY 1.805 trillion to JPY 1.260 trillion, while the full year profit forecast was cut from JPY 29 billion to JPY 12 billion, down by 58.6 percent.
NYK Line ascribed the revision to, among other things, higher than expected one-off costs related to the launch of the Ocean Network Express with K line and MOL. The JV signaled the termination of NYK Line’s liner business.
In addition, the group’s airline business Nippon Cargo Airlines (NCA) temporarily suspended all of its aircraft operations from June 17, 2018, to confirm the airworthiness of the company’s aircraft.