Neptune Orient Lines follows the trend
The global transportation and logistics company Neptune Orient Lines Ltd (NOL) reported a loss for the full year 2001 of USD 57 million. This includes the one-off provision of USD 14 million for impairment in values, particularly of various non-core property investments.
Revenue for the Group as a whole (to which APL also belongs) for the year remained virtually unchanged, rising by 3% from USD 4.61 billion to USD 4.74 billion. Earnings from business operations before interest, taxes, depreciation, amortisation and minority interests (Ebitda) amounted to USD 349 million (2000:USD 593 million). With its liner shipping business, APL contributed 76% to the total revenue, while APL Logistics’ share increased to 15% and NOL Chartering & Enterprise generated 9% of the total.
<<The downturn in world trade coinciding with a substantial addition of ship
capacity had a significant impact on the liner business and therefore on the Group as whole,>> said NOL president and CEO Flemming R. Jacobs. <> he added. <<But we would like to point out that we had of course planned for
the swings and roundabouts that are inherent in our cyclical industry. We knew that global capacity would grow by 11% and that trade was forecast to grow by 7%. The capacity came but the trade volume did not.>>
Counter measures
<<We moved as swiftly as possible in our industry to match our services to the changed trade environment. We have focused even more strongly on reducing our costs, particularly those associated with capacity. In addition, we are increasingly looking to e-commerce solutions and making a more efficient use of our equipment (containers etc.). We are now also intensifying our cooperation with our customers.
<> Jacobs said.
