MOL announces revision of FY 2015 outlook and business structural reforms

By Finance

Mitsui O.S.K. Lines, Ltd.(MOL) yesterday (Jan 29) announced a revision of its consolidated business outlook for fiscal year 2015 (April 1, 2015 to March 31, 2016), issued on October 30, 2015, as follows. In addition, MOL announced the plan to record the costs for its business structural reforms under extraordinary loss for the fourth quarter of this fiscal year.

MOL announces revision of FY 2015 outlook and business structural reforms

Wood Chips Carrier Anemona Image: Ricardo A. López

MOL made a downward revision of its full-year FY2015 forecast for operating income and ordinary income from the previous forecast in consideration of a significantly weaker than anticipated dry bulker market despite the tailwind of lower bunker prices, as well as a delay in recovery of containership freight rates.

MOL has decided to implement business structural reforms in response to the current severe business environment, and details of each measure are under consideration.

MOL expects to record an extraordinary loss of up to approximately ¥ 180.0 billion in the fourth quarter of this fiscal year, due to costs for the business structural reforms including disposal of vessels in the dry bulker and container ship businesses. Furthermore, MOL must make a significant revision of the current midterm management plan “STEER FOR 2020”, which is slated to continue through fiscal year 2016, based on the rapidly deteriorating business environment and the decision to implement the above-mentioned business structural reforms.

Source: Mitsui O.S.K. Lines