NOL reduces year-to-date Core EBIT loss 31 October 2014

Growth strategy is on track at APL Logistics

NOL Group has reported a Q3, 2014 net loss of US$23.0 million. Q3 revenues decreased by 0.1% to US$2,060.0 million. Year-to-date, the Group reported Core EBIT (Earnings Before Interest, Taxes and Non-Recurring Items) loss of US$59.0 million, a 31.0% reduction from the same period last year. 9M revenues fell 1.7% to US$6,389.0 million.

The Group’s cost management and efficiency drive has delivered US$290.0 million of cost savings year-to-date. The savings were primarily achieved through a more efficient fleet and network optimisation. These savings were largely offset by lower rates, lower volumes and increased costs from Southern California port congestion.

APL, NOL’s container shipping business, reported Q3, 2014 Core EBIT of US$6.0 million, up from US$3.0 million in the same period last year. APL registered lower revenue for the quarter at US$1.7 billion, a year-on-year dip of 2.0% due to freight rate pressures and lower cargo volumes. Volumes were partly impacted by port congestion issues in Southern California, which has also caused a significant increase in operating costs.

NOL’s supply chain management business, APL Logistics continued its steady performance year-on-year as a result of growth in key emerging markets. APL Logistics recorded Q3, 2014 revenue of US$399.0 million, an increase of 8.0% from a year ago. It recorded Q3 Core EBIT of US$15.0 million. Year to date, APL Logistics increased revenues by 4.3% to US$1,201.0 million, as core EBIT climbed 4.4% to US$47.0 million.

APL Logistics’ positive performance was driven by broad-based and steady demand growth across all markets, particularly in the Asia-Middle East region. Its growth strategy is on track as it focuses on its core verticals of automotive, consumer, industrials and retail.