Nikkei business daily reported that Mitsui OSK Lines Limited will incur a charge of about JPY 7 billion related to vessel operations overhauling.

As per report, the company aims to lift group pretax profit by an annual JPY 5 billion from 2012 through measures like lowering the average operating cost per vessel by streamlining its lineup of ships.

Mitsui OSK also sees losses associated with the sale of a large iron ore transport ship built at a high cost and charges related to early termination of a chartered boat contract. In July 2011, the shipping firm cut its earnings outlook for the year by 71% to JPY 60 billion on concerns about US economic slowdown and a strong yen.

Mitsui OSK, which has a fleet of more than 900 vessels, had expanded its inventory of ships when construction and shipping fees were at their peak.

(Sourced from Nikkei)