NOL Group has a profitable third quarter

apl shipOCTOBER 25, 2012 — APL's parent NOL Group today reported net earnings of US$50 million for the third quarter of 2012, a US$141 million turnaround from the US$91 million net loss in the third quarter of 2011. It was the first time since the fourth quarter of 2010 that the global container shipping and logistics group posted a net profit.

Singapore-based NOL attributed the improvement in financial performance to increased cost efficiencies, stable rates and volume growth. APL Logistics, NOL's supply chain management business, reported double digit revenue growth, with a third quarter Core EBIT (Earnings Before Interest and Taxes) of US$19 million.

"Our efforts to improve the Group's competitive position are paying off," said NOL Group CEO Ng Yat Chung. "Going forward, maintaining focus on the fundamentals of our business – service quality, operational efficiency and cost discipline – will be key to improving performance."

The company said that it has achieved US$360 million through its cost and efficiency drive in the first three quarters of 2012 toward a full-year goal of US$500 million.

However, the company says that the macro-economic outlook remains weak and the container shipping industry continues to face overcapacity and high fuel prices. It says that the group posted weak first quarter results and that while it will continue to extract further operational efficiencies and strengthen its competitive position, it expects to post a full-year lost.

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