“K” LINE SCALES DOWN PROFIT FORECAST

“K” LINE SCALES DOWN PROFIT FORECAST

“K” LINE SCALES DOWN PROFIT FORECAST

   The Japanese shipping group “K” Line has reduced its revenue and profit forecasts for its current financial year ending March 31, because of the slowdown in the container and bulk cargo markets.

   “K” Line expects group operating revenues of 585 trillion yen ($4.9 billion) for the 2001/2002 financial year, 2.5 percent less than it had predicted before. In the previous financial year, the group had posted operating revenues of Yen 558 trillion ($4.6 billion).

   “K” Line also lowered its forecasted ordinary income from Yen 27 billion ($225 million) to Yen 21.5 billion ($179 million). The Japanese group maintained its net profit forecast of Yen 10 billion ($83 million) for the current financial year. In the 2000/2001 financial year, it had reported a net income of Yen 1.9 billion ($16 million).

   “K” Line said that, during the second half of its current fiscal year (October through March 2002), the containership freight and tramp markets “will likely continue to be low-key and, furthermore, cargo movement will slow down due to the fallout of the Sept.11 terrorist attacks on America.”

   “It will be difficult to attain the figures announced previously in terms of both operating revenues and ordinary income,” it added.