NOL books US$391m loss

NOL        RECESSION        SHIPPING

Singapore - NOL said cost cutting measures did not do much to offset the impact of plummeting demand. The company reported a US$391 million loss for the first half.

The loss compares with a net profit of US$196 million for the same period in 2008.

"Although volumes and operating performance improved in the latter months of the first half, business conditions remained depressed, and this continued to impact our financial performance," said NOL group president and CEO Ronald Widdows.

The company continuously adjusted its network, equipment, terminal handling and land transport expenses during this time including a headcount reduction of 1,000 employees.

NOL said it was not optimistic for the rest of the year, and predicts it will suffer a full year loss. "For the rest of the year, NOL anticipates a continuation of adverse business operating conditions. This is notwithstanding the cot saving measures that have been undertaken. NOL reiterates that it expects to post a significant full year loss. The group will continue to focus on improving asset utilisation, yields and productivity."

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