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NEPTUNE Orient Lines (NOL), South-east Asia's biggest container carrier, expects its 2009 first quarter results to show an estimated net loss of US$240 million.
It said this estimate, which is 'subject to finalisation', is more than the net loss of US$149 million it reported for Q4 2008. Q1 results are due to be reported on May 12.
'The first quarter of the year is a seasonally slower period for the global container shipping sector,' said NOL in a filing to the Singapore Exchange last night.
'However, this deterioration in performance is also due to a worsening of business operating conditions in the first quarter.'
NOL also expects its full year loss to be 'significantly worse than financial analysts' current estimates', as adverse business operating conditions are expected to continue.
This is despite the ongoing increased cost savings and mitigation efforts the company has taken, it said.
On Wednesday, the company said it will increase cost-saving measures. NOL lifted its cost-savings target for the year to as much as US$550 million, from an initial plan of US$250 million.
Measures to cut costs included paying its chief executive and directors less, with chief executive Ron Widdows taking a voluntary 20 per cent cut in basic pay from March.
NOL lost nine cents, or 6 per cent, to close at $1.42 yesterday.
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