NYK Line will shoulder a near $2bn hit stemming from distress in the container, dry cargo and airline businesses.
Tokyo-listed NYK braced investors for a JPY 195bn ($1.87bn) extraordinary loss in its first quarter accounts following impairments and provisions.
While the shipowner has yet to calculate the full impact on its bottom line, it did warn a change to its dividend could follow.
In a statement NYK said it would take an extraordinary loss of JPY 100bn on its containership business.
It explained the market had reached all time lows and was not now expected to recover as quickly as the owner had believed.
A further JPY 80bn loss was taken against the company’s dry cargo operations, with much of the figure linked to its capesize fleet.
NYK explains it has been selling and scrapping ships while returning chartered tonnage but demand is improving more slowly than the owner had projected.
The smaller charge of JPY 10bn was taken against the air cargo business, which is selling three aircraft as part of a structural overhaul.
