Last week, NOL posted a larger than anticipated bigger net loss (by 76%) for the second quarter compared to a year earlier, dragged down by one-off expenses linked to impairment losses and restructuring charges, it said.
Net loss for the three months ended June 29, 2012, stood at US$118 million, which widened from a net loss of US$57 million for the same period a year ago. This result – which marks the sixth straight quarter of losses – missed market expectations of a net loss of US$67.6 million, a Bloomberg poll of six analysts showed: by 76%. Loss per share for the second quarter stood at 4.57 US cents, against a loss per share of 2.21 US cents.
Excluding these charges, NOL would have registered a turnaround for its core earnings before interest and taxes (Ebit) over the year on higher freight rates and cost savings, NOL claims. It said that market conditions remain uncertain.
Funnily our constructive, nation-building media didn’t remind us of its CEO’s credentials for becoming CEO: great experience except in shipping, a specialist industry. He ain’t even a navy man.
When, Maesk’s container division reports its latest results, I’ll compare its performance (boss is a true blue shipping man) to scholar’s performance at NOL. Last time, he did badly http://atans1.wordpress.com/2012/05/25/with-ex-general-scholar-at-helm-nol-still-underperforms-maersk/.
Wonder how the soldier boy going to be SMRT’s CEO will perform? As a ex-SAF chief, the trains should run on time, and safely: unlike when a retailer ran it. Also train depots would be secured against vandals and terrorists. But can he improve its financial numbers, something the NOL CEO (another ex-general) failed to do at NOL.
Update on 16 August at 1.06pm: How the constructive, nation-building BT on 14 August reports CEO’s achievement of making US$7m on its core earnings. Sounds a story from a celebrity magazine or from the North Korean media on its new leader.