SOS: NOL loses US$254m in Q1

The container shipping and logistics company also lost money in the same period in 2011 but a mere US$10 million compared to this latest net loss.

NOL Group reported a first quarter 2012 net loss of US$254 million due to high fuel costs and low freight rates in container shipping.

Meanwhile the company said that in the first quarter of 2012 it achieved about US$100 million of cost savings under its ongoing programme. For 2012, NOL targets to achieve US$500 million worth of savings. The savings were primarily through reduced fuel consumption and improved operational costs.

NOL is also undertaking an organisational restructuring that will result in an additional annual savings of about US$70 million from 2013 onwards. The company said that its organisation structure globally will be streamlined to shorten decision cycles and respond better to market changes and evolving customer needs.