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ONE slashes HI and FY forecasts due to 'teething problems'
来源： 编辑：编辑部 发布：2018/10/18 09:01:57
JAPAN's Ocean Network Express (ONE) has revised downwards its first-half and full-year consolidated business forceasts due to "impact of teething problems immediately after the commencemtnt of services in April this year".
ONE, comprising "K" Lines, MOL and NYK, has revised downwards its first-half revenue by 7.5 per cent from US$5.44 billion to $5.03 billion. The company has also changed its revenue forecast for the full year ending 31 March, 2019, from $12.25 billion to $11.0 billion, a drop of 10.2 per cent.
Furthermore, the company also forecast that it will incur a loss of $271 million in the first half of the year, lower than the earlier forceast of a loss of $310 million. However, for the full year the forecast is for a loss of $710 million, slightly higher than earlier forceast of a loss of $600 million.
In a statement, ONE said: "For the first half of the fiscal year, synergistic effects of the business integration have emerged steadily. On the other hand, liftings and utilisation dropped due to the impact of teething problems immediately after the commencement of services in April of this year.
It said that despite efforts to regain lost ground during the peak season from July to September, liftings and utilisation remained lower than the outlook because the negative impact remained on its main Asia-North America routes and Intra-Asia routes.
"ONE made a downward revision in the previously announced forecast due to the decrease in revenue resulting from the above-mentioned lower liftings and utilisation, with additional negative effects from the higher cost of returning containers brought on by decreased liftings on backhaul voyages (from North America to Asia, Europe to Asia, etc.)".
The company pointed out that the teething problems regarding its services have already been resolved and efforts are being made to "restore the trust of customers and further improve service quality".
ONE added: "However, liftings and utilisation are still on the way to recovery, and the target for additional cost reduction to address increased bunker prices, is expected to be lower than the target in the previously announced forecast. Therefore, ONE made a downward revision in the previously announced full-year business forecast as well".
ONE, comprising "K" Lines, MOL and NYK, has revised downwards its first-half revenue by 7.5 per cent from US$5.44 billion to $5.03 billion. The company has also changed its revenue forecast for the full year ending 31 March, 2019, from $12.25 billion to $11.0 billion, a drop of 10.2 per cent.
Furthermore, the company also forecast that it will incur a loss of $271 million in the first half of the year, lower than the earlier forceast of a loss of $310 million. However, for the full year the forecast is for a loss of $710 million, slightly higher than earlier forceast of a loss of $600 million.
In a statement, ONE said: "For the first half of the fiscal year, synergistic effects of the business integration have emerged steadily. On the other hand, liftings and utilisation dropped due to the impact of teething problems immediately after the commencement of services in April of this year.
It said that despite efforts to regain lost ground during the peak season from July to September, liftings and utilisation remained lower than the outlook because the negative impact remained on its main Asia-North America routes and Intra-Asia routes.
"ONE made a downward revision in the previously announced forecast due to the decrease in revenue resulting from the above-mentioned lower liftings and utilisation, with additional negative effects from the higher cost of returning containers brought on by decreased liftings on backhaul voyages (from North America to Asia, Europe to Asia, etc.)".
The company pointed out that the teething problems regarding its services have already been resolved and efforts are being made to "restore the trust of customers and further improve service quality".
ONE added: "However, liftings and utilisation are still on the way to recovery, and the target for additional cost reduction to address increased bunker prices, is expected to be lower than the target in the previously announced forecast. Therefore, ONE made a downward revision in the previously announced full-year business forecast as well".