NOL Group has announced its financial results for the third quarter of 2014. It reported revenue of $2.06bn, a flat result compared with Q3 2013. The company also reported EBIT of $21m, a 5% decline year-on-year. Accordingly NOL’s margin stood at 1.02%.
The company stated that its cost management and efficiency drive has delivered $290m of cost savings over the year-to-date. The savings were primarily achieved through a more efficient fleet and network optimization. These savings were largely offset by lower rates, lower volumes and increased costs from southern Californian port congestion.
“Our focus on increasing operational efficiencies remains on track,” said NOL’s Chief Executive Officer Ng Yat Chung. “However, our liner business faced tough operating conditions in the second and third quarters due to severe port congestion in southern California, and this has negatively impacted our financial performance.”
APL, NOL’s container shipping business, reported third quarter 2014 EBIT of $6m, an increase of 100% over the same period of 2013. APL registered lower revenue for the quarter at US$1.7bn, a year-on-year fall of 2% due to freight rate pressures and lower cargo volumes. APL said 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, recorded third quarter 2014 revenue of $399m, an increase of 8% over the third quarter of 2013. The division also reported third quarter EBIT of $15m. “APL Logistics continued its steady performance year-on-year as a result of growth in key emerging markets,” said APL Logistics’ President, Beat Simon. “We remain focused on growing our business in key industry verticals and high-growth markets.”
APL Logistics’ positive performance was driven by broad-based and steady demand growth across all markets, particularly in the Asia-Middle East region. The company claimed that its growth strategy is on track as it focuses on its core verticals of automotive, consumer/ retail, and industrial.
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