“K” Line increases its profit forecast
“K” Line increases its profit forecast
Improved results from Kawasaki Kisen Kaisha Ltd.'s tanker, bulk and container shipping activities have led it to increase its forecasts for revenue, profit and dividend for the current financial year to March 31, 2005.
“K” Line now expects group net income of Yen57 billion ($514 million) for the 2004-2005 financial year, up 72 percent from Yen33 billion ($314 million) earned in the financial year ended March 31, 2004. The Japanese group had announced a forecast net income of Yen46 billion ($414 million) for the 2004-2005 financial year.
During the April-June quarter of this year, the freight market for bulk and tanker vessels “went up sharply due to extremely strong demand for space,” the Japanese group said. Over the same period, the group’s containership business experienced “a very strong cargo movement globally especially in (the) Asia/Europe trade,” with higher freight rates.
For the current July-September quarter, “K” Line said its containership business “remains strong towards (the) coming peak summer season.” Its tanker business is expected to continue to operate in a strong market.
“K” Line said the overall shipping market is expected “to remain favorable or stable for the entire shipping industry' from October to March 2005, when its current financial year ends, despite the likelihood of higher fuel prices and vessel charter rates.
The revised forecast for “K” Line’s consolidated group revenue is Yen790 billion ($7.2 billion) for the 2004-2005 financial year, up 9 percent in local currency from the Yen725 billion ($6.9 billion) in revenue for the 2003-2004 financial year. The group’s previous revenue forecast for the current financial year was Yen760 billion ($6.8 billion).
“K” Line has also increased its forecast operating income to Yen98 billion ($883 million) from a previous forecast of Yen76 billion ($685 million). If achieved, the 2004-2005 forecast operating income will be 39 percent higher than the operating gain of Yen71 billion ($667 million) earned by “K” Line in the 2003/2004 financial year.
Furthermore, “K” Line said it now expects to pay a total dividend of Yen15 per share for the current financial year, up from its previous forecast of Yen10 per share.