Global shipping group Neptune Orient Lines (NOL) has revealed that it has continued to struggle through the current economic crisis, reporting a second-quarter loss of US$146.2m, down from a profit of US$75.8m in the corresponding period of 2008.
Revenue dropped 38 per cent to US$1.4bn during the quarter, hit by a 19 per cent drop in cargo volume and falling freight rates.
'Although volumes and operating performance improved in the lattermonths of the first half, business conditions remained depressed, andthis continued to impact our financial performance,' said group CEO Ron Widdows. 'Wecontinued to adjust our business to these tough conditions – withmeasures taken to rationalise our network, equipment, terminal handlingand land transport expenses and reduce general and administrative costs– while maintaining high service levels.'
In its financial statement, NOL said that it expected to post a significant full-year loss as the economic crisis continues a, despite the cost-cutting measures that the group has put in place.
In the first quarter of the year, NOL had reported a loss of US$244.6m, down from net income of US$120.7m during the previous year, while revenue dropped 36 per cent to US$1.5bn on a year-on-year basis.
No comments yet