Nippon Yusen Kabushiki Kaisha (hereinafter known as “NYK Line”) determined to overview our full-year monetary consolidated forecast for the fiscal yr ended March 2021 (hereinafter known as “the current fiscal year”) in view of the opportunity of upward revision of the forecast introduced on November 5, 2020.

This is principally as a result of the Global Logistics enterprise has been in favor of the market greater than anticipated on the time of the announcement in November. In addition, NYK Line expects to report a unprecedented loss within the third quarter of the present fiscal yr as a part of the structural reforms of the dry bulk division.

1. Full-year Financial Forecast for the present fiscal yr

Our monetary outcomes for the third quarter of the present fiscal yr below overview are largely supported by favorable market situations within the Global Logistics enterprise (Liner Trade, Air Cargo Transportation and Logistics), which considerably exceeds our assumptions made on the time of the announcement in November. NYK Line expects recurring revenue to exceed JPY60 billion within the present quarter (October to December 2020), and expects to exceed JPY100 billion for cumulative outcomes for the third quarter of the present fiscal yr below overview.

In addition to the forecasts for the present quarter, the market situations for Global Logistics enterprise are anticipated to stay favorable for a sure time frame, and even after taking into consideration the recording of the extraordinary losses described under, the forecasts for the present fiscal yr are anticipated to be revised upward.

The Company has determined to overview the forecast based mostly on the present scenario as much as the current time and the market outlook and the affect of COVID-19 pandemic on its enterprise, and plans to reveal the forecast on the time of the announcement of monetary outcomes for the third quarter of the present fiscal yr scheduled for February 3, 2021.

Recurring revenue for the second quarter (cumulative) of the present fiscal yr, which was introduced in November, was JPY47.4 billion, and the full-year monetary forecast was JPY70 billion.

2. Overview of Extraordinary Loss

(1) Details of extraordinary loss

In mild of the growing uncertainty within the enterprise atmosphere in dry bulk division because of the COVID19 pandemic, as a part of structural reforms, NYK Line has been contemplating the transaction of chartered vessels which have long-term contract at mounted prices however no long-term cargo contracts, which had been a priority for a while.

As a results of additional deliberations, within the third quarter of the present fiscal yr, taking into consideration will increase of risk of the bills or losses incurred by redelivery of some a part of vessels sooner or later, the quantity of extraordinary loss recorded as bills incurred by redelivery of vessels and people anticipated to be incurred, is anticipated to extend by roughly JPY37 billion in contrast with the identical recorded within the second quarter consolidated monetary outcomes on the present fiscal yr.

(2) Impact on the monetary outcomes

As described in 2. (1) above, the estimated quantity is anticipated to be recorded as extraordinary loss within the third quarter consolidated monetary outcomes of the present fiscal yr. The estimated quantity is just not included within the fullyear consolidated monetary forecast introduced on November 5, 2020.

However, as talked about above, the full-year monetary forecast of the present fiscal yr is anticipated to be revised upward although the extraordinary loss is included in based mostly on the monetary forecast for the present quarter (October to December 2020) and the market outlook and so on.

(3) Disclosure on Stand-alone Financial Results

An extraordinary lack of the identical quantity is anticipated to be recorded within the stand-alone monetary outcomes for the third quarter of the present fiscal yr.

Reference: nyk.com