Nippon Yusen Kabushiki Kaisha decided to revise our consolidated financial forecasts for fiscal year ending March 2023 (hereinafter “the Current Fiscal Year”) announced on May 9, 2022.
Reasons for the Revision:
The forecast at the beginning of the current fiscal year assumed a decline in demand related to general consumer goods considering lockdowns in China, the turmoil of the situation in Russia and Ukraine, and the acceleration of global inflation. In the Liner Trade business, a gradual decrease in cargo volume and a certain level of decline in spot freight rates were factored in.
However, amid ongoing supply chain disruptions, we expect the profit of our equity method affiliate OCEAN NETWORK EXPRESS PTE. LTD. to exceed expectations due to the continuing favorable market conditions resulting from robust shipping demand and other factors. In the Air Cargo Transportation business and Logistics business, overall profitability has improved, supported by solid demand. In addition, due to the favorable dry bulk market and the impact of exchange rates, the Bulk Shipping business is also expected to improve profitability, and therefore, the financial forecasts have been revised upward. Currently, we have been carrying out necessary operations and examinations for consolidated financial results and plan to disclose the latest forecasts on the presentation meeting for the first quarter of the fiscal year ending March 2023, scheduled on August 3, 2022.
Source: Hellenic Shipping News