“K” Line triples profits in first half
“K” Line triples profits in first half
Kawasaki Kisen Kaisha, Ltd. tripled its operating income and net income in the six-month period ended Sept. 30, as the Japanese company rode the boom in the container shipping and bulk carrier markets.
“K” Line’s net income climbed to 15.9 billion yen ($144 million), 224 percent more than the Yen4.9 billion result reported for April-September 2002 and 52 percent higher than the full-year net result for the financial year ended March 31. Operating income soared to Yen34.3 billion ($309 million), up 204 percent on the corresponding period of 2002.
Group revenue increased by 17 percent, to Yen362.1 billion ($3.3 billion) in the latest six-month period, from Yen309.6 billion in April-September 2002.
“During this first half (April-September 2003), in spite of negative factors such as the steep rise in value of (the) Japanese yen against (the) U.S. dollar from mid-September, we were favored with brisk cargo movement, subsequent normalization of container cargo rates and tramp markets proceeding at a historically high level,” a spokesman for “K” Line said.
Commenting on its containership business, “K” Line said that it managed to “normalize” freight rates on its North American services, after those rates had dropped substantially in the previous year. “K” Line experienced favorable volumes in its North American services and a “considerable steadiness” in cargo volumes on its European services. The group expects “much better results” than last year from its container shipping business for the second half of the current financial year ending in March 2004.
“K” Line also reported improved results from its bulk, car-carrier, tanker and energy transportation businesses.
Commenting overall group activivites, “K” Line said that it expects strong cargo volumes and favorable markets to continue during the second half of its financial year. However, it cited concerns about the higher fuel oil price and the rise in value of the yen against the U.S. dollar.
“K” Line forecast that it will earn a annual net income of Yen30 billion ($270 million) for the current financial year ending on March 31, 2004, three times the Yen10.3 billion net profit earned in the year ended March 31, 2003. This would be the best profit earned by the company for at least six years.
The sharp improvement in results for the April-September period at “K” Line broadly mirrors those of fellow Japanese diversified groups NYK Line and Mitsui O.S.K. Lines. The combined operating income of NYK, MOL and “K” Line for April-September this year totaled $1.1 billion, nearly twice the $560 million operating profit of the same period of 2002. Their combined net income totaled $521 million, more than three times the $152 million net result for the same period of last year.