Weakness in bulk and tanker markets cause caution



Jan 31 -- Japanese shipping group MOL reported higher container shipping profit but cut its earnings forecast for its fiscal year ending March 31, citing weakness in bulk and tanker markets.



MOL reported $96 million operating profit from container shipping during its October-December fiscal third quarter, compared with a $138 million loss a year earlier.



For the current fiscal year’s first three quarters, container shipping drove an increase in group-wide net profit to $640 million from $21 million in the April to December period in 2009.



The company said the container shipping market continued its upward trend in the last three months of 2010 despite a seasonal slump in cargo volume. MOL raised its container shipping profit forecast for the full fiscal year 11.4 percent to $452 million.



Despite the container profits, MOL lowered its group-wide profit forecast for the full fiscal year to $693 million, down 12 percent from the most recent forecast last Oct. 29. Dry bulk demand “is falling” and “the pace of recovery in the tanker market is slow,” MOL said in its earnings release.



“After taking into consideration rises in bunker prices, the performance for full year 2010 is expected to be worse than the previously announced outlook,” the company said.



(Source: JoC)