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Japan's top 3 shipping firms incur heavy losses in FY 2011.

TOKYO, April 27 Kyodo

Japan's three leading shipping firms incurred heavy net losses in fiscal 2011 ended last month due to higher fuel costs and falling fares, according to their consolidated earnings reports released Friday.

Nippon Yusen K.K. posted a record-high net loss of 72.82 billion yen, a reversal from a profit of 78.54 billion yen a year earlier, while Mitsui O.S.K. Lines Ltd. logged a net loss of 26.01 billion yen in a turnaround from a profit of 58.28 billion yen.

Kawasaki Kisen Kaisha Ltd. booked a net loss of 41.35 billion yen against a year-before profit of 30.60 billion yen.

The results reflected fare-cutting competition due to the successive placement of large container vessels, which caused falls in container ship fares, as well as the yen's appreciation and higher fuel costs resulting from rises in crude oil prices.

Sales dropped 6.3 percent to 1.81 trillion yen at Nippon Yusen, 7.0 percent to 1.44 trillion yen at Mitsui O.S.K. and 1.3 percent to 972.31 billion yen at Kawasaki Kisen.

While the three firms are projecting net profits for fiscal 2012 ending next March, a Mitsui O.S.K. official said fares are likely to fall in the latter half of the fiscal year.
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Publication:Japan Weekly Monitor
Article Type:Financial report
Date:Apr 30, 2012
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