NYK Line reported its net income in the first quarter of 2013, ending June 30, 2013, was 8.6 million Japanese yen (about US$87.7 million), improving from a net loss of 1.3 million yen in the first quarter of 2012, ending June 30, 2012.

Quarterly revenue was 528.5 million yen, compared with 477.6 million yen in the same quarter in the previous year.

During the first quarter, the economic situation remained “clouded in uncertainty,” the Tokyo-based container carrier said in a written statement. The European economy continued to be sluggish, and growth in China, India and other economies slowed, despite signs of moderate economic recovery in the U.S., the container line said. Furthermore, container volume in the trans-Pacific and Asia-Europe routes slumped and freight rates declined on all routes as supply-side pressure increased amid the continued delivery of large container vessels, NYK Line said.

The carrier also noted the shipping industry’s markets remained in a slump during the first quarter as a result of the continued supply and demand imbalance caused by excess capacity, and as a result, it strove to reduce costs by expanding slow-steaming to its entire fleet and implementing other group-wide measures to further reduce fuel consumption.

Nippon Cargo Airlines reported a year-over-year deterioration in revenue and a net loss for the quarter resulting from the “significant” impact of declining rates stemming from the economic stagnation in Europe and a slump in Japan-originated air freight demand.

Meanwhile, the logistics business suffered from the sluggish business environment in Europe too, although it was “relatively robust” in the U.S., Southern Asia and Oceania. Overall, the logistics segment posted lower profit on increased revenue.

NYK Line predicted that its cumulative net income in the second quarter, ending Sept. 30, 2013, will be 13.5 million yen, and its revenue will be 1.07 billion yen. NYK Line also forecasted that profit for its fiscal year 2013, ending March 31, 2014, will be 30.0 million yen, and revenue will be 2.14 billion yen.

via: www.joc.com