Thursday, November 1, 2012
NOL reports profit in third quarter for first time since 2010
Neptune Orient Lines has risen to profitability for the first time in 18 months, due to "increased cost efficiencies, stable rates and volume growth," including recent organizational restructuring and lower fuel use.
The Singapore container line saw a net profit of $50 million, compared with a net loss of $91 million year on year, according to the Straits Times.
"Going forward, maintaining focus on the fundamentals of our business - service quality, operational efficiency and cost discipline - will be key to improving performance," said NOL chief executive Ng Yat Chung.
NOL's revenue was up 4 percent in the third quarter at $2.3 billion.
The container carrier is selling its headquarters for $311 million to real estate company Fragrance Group. NOL plans to lease the property until June 30, 2014, and said it was selling the facility "to release capital for strategic investment."
Although the bottom line is looking up, an NOL statement said, due to the weak macro-economic outlook, the company "expects to post a full-year loss."
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