NOL slides into red

Janet Porter - Tuesday 12 May 2009

SINGAPORE’S Neptune Orient Lines swung deep into the red in the first quarter with a loss of $245m, against a net profit of $121m in the same period of 2008.

Revenue was down 36% to $1.5bn.

The results were in line with an update the company provided to the stock exchange last month.

The deterioration reflected a decline in both cargo volumes and freight rates.

“During the first quarter, a range of significant business adjustments were undertaken to better align the group’s overall network and cost structures with reduced market demand. Further cost saving initiatives have been set in motion and will be implemented as the year progresses,” said chief executive Ron Widdows.