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Japanese shipping firms post records

TOKYO - Shipping companies Nippon Yusen KK, Mitsui O.S.K. Lines Ltd and Kawasaki Kisen Kaisha Ltd all earned record sales and net profits for the fiscal first half ended September 30 thanks to brisk cargo shipments from China.

Nippon Yusen's sales rose 11 percent on the year to 680 billion yen (US$6.27 billion). Operating profit at its core maritime shipping division rose 24 percent, but due to the impact of the severe acute respiratory syndrome, the company's passenger ship operations fell 4.3 billion yen into the red. As a result, group operating profit rose just 8 percent. Net profit, however, jumped 170 percent to 21.2 billion yen.

Mitsui O.S.K.'s sales rose 9 percent to 482.8 billion yen.

Its container ship division, which marked an 8.2 billion yen operating loss a year earlier, generated a 5.4 billion yen profit. "In addition to brisk activity on Asian-Europe/US routes, there were also improvements on routes to Africa and South America, which had been sluggish until now," said a senior executive.

The company's group operating profit increased 160 percent to 38.3 billion yen.

Kawasaki Kisen, whose container ship division accounts for almost half of the company's overall sales, benefited from the unveiling of 13 new ships. As a result, sales rose 17 percent, while operating profit tripled to 34.3 billion yen.

The strong yen and rising fuel costs are areas of concern, but Mitsui O.S.K. and Kawasaki Kisen are projected to generate record profits for the full term ending March 31. Nippon Yusen is also expected to reach profit levels approaching the record figures posted for the fiscal year ended March 31, 2001.

(Asia Pulse/Nikkei)

Nov 15, 2003

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