Japan's Top Shippers Trim Loss Estimates

Jan 31 Japan's top three shippers, Nippon Yusen KK (NYK), Mitsui OSK and Kawasaki Kisen Kaisha pared their full-year loss estimates on Tuesday.

News ID: 72007

Date: 31 January 2017 - 11:26

According to MANA, NYK, the biggest of the three by sales, lowered its forecast for an operating loss for the year to March 31 to 17 billion yen ($149.87 million) from an earlier 25.5 billion yen deficit prediction. That compares with a forecast for an average operating loss of 24.2 billion yen from 11 analysts polled by Thomson Reuters.

Mitsui OSK trimmed its loss estimate by 7 billion yen to an 8 billion yen loss prediction, while Kawasaki Kisen now sees a full year operating deficit of 43 billion yen compared with a 44 billion yen loss forecast three months ago.

"A market recovery in container and dry bulk and second quarter restructuring effects were the positives," NYK said in its presentation material.

To survive what has been the biggest slump in container shipping since the industry's creation in the 1950s and 1960s, NYK in October announced that it was integrating its container unit with those of Mitsui OSK and Kawasaki Kisen to create the world's sixth-largest fleet.

The combined operating loss at the three shippers in the quarter to Dec. 31 totaled 1.4 billion yen compared with a profit of 6.3 in the last year.