I would like to take this opportunity to thank all NYK Line shareholders and investors for their enduring support.

We have announced our financial results for the first nine months of the fiscal year ending March 31, 2013, and I would like to explain the highlights.

Since the launch of Japan's new administration at the end of 2012, overall market sentiment has risen steadily on expectations surrounding "Abenomics" (new economic measures by Prime Minister Shinzo Abe) and the Bank of Japan's monetary easing policy. The yen has depreciated rapidly while stock prices have risen. The shipping market, however, shows little sign of recovering from the prolonged slump stemming from a widening supply-demand imbalance caused by lots of newbuilt tonnage ordered before the onset of the financial crisis. This prolonged slump, combined with soaring bunker oil prices, has created a challenging operating environment for our Group.

We are striving to overcome these challenges and have set the return to profitability our top priority. To achieve this, we have continued to implement cost-cutting measures, including the restructuring of vessel assignments and slow steaming, and other initiatives designed to get our performance back on track. As evidence of our progress, I am pleased to report that we posted accumulative profit at all profit levels at the end of the third quarter.

Overview

Our consolidated revenues have increased by ¥55.4 billion year on year. Our operating imcome improved by ¥31.8 billion year on year, and recurring profit increased by ¥40.1 billion year on year and posted profit of ¥15.3.

There are several major factors behind our dramatic improvement. In the liner trade segment, we have leveraged our shipping alliances to restructure European and other major routes which helped enabling us to restore freight rates. In the bulk shipping segment, car transportation volume in the car carrier division has returned to the level seen prior to last year's natural disasters which severely impacted results. The cruises segment also showed improvement, with losses narrowing thanks to revamped marketing programs.

In the dry bulk carrier division, despite small upturn in autumn the market remained sluggish due to a high level of newbuilt tonnage. In the tanker division, the LNG tanker business has been stable, and while the crude oil tanker market showed some signs of seasonal improvement from autumn, the rise was insufficient to compensate for the general slump. In the non-shipping divisions, the terminal business and logistics business both earned a profit, but the air cargo transportation business suffered a loss due to the decline in air freight cargo out of Japan and reduced profit margins.

Earnings Forecast

Currently, the yen continues to depreciate. Recovery in the shipping market, however, is not expected until the latter half in fiscal 2013, at the earliest, and we foresee the current severe business environment continuing for the remainder of this fiscal year. We have therefore revised our operating income and recurring profit forecasts downward. On the other hand, we have revised our net income forecast upward due to decreased loss on valuation of investment securities in the third quarter.

Dividends

We have yet to make any decision on year-end dividends, as we are to monitor cautiously various uncertain factors, including exchange rates and stock prices, before the end of the fiscal year. We will make an announcement as soon as a decision is made.

I would like to reiterate my sincere thanks to shareholders and investors for their understanding, and I look forward to your continued support.

-- Source from Nippon Yusen Kabushiki Kaisha