K-Line Beats Forecast

Japanese transportation company Kawasaki Kisen Kaisha, Ltd. (K-Line) reported a bigger income than forecast in consolidated financial results for the first half of the fiscal year ending March 2015 announced on July 31, 2014.

Operating revenues reached JPY 659.7 million, JPY more than expected 9.7 million. Net income almost doubled the forecast of JPY 11 million, reaching JPY 21.1 million.

“Although facing the deterioration in the business environment such as the sluggish market in dry bulk business and the gradual declining trend that continued in the number of ex-Japan built-up cars for transportation affecting car carrier business, we successfully increased income by working for cost cutting and improvement of vessel navigation efficiency,” the company said.

The company’s containership business also had a better income, which, according to K-Line, was due to a further restoration of freight rates principally in Japan-North America routes and the depreciation of the yen against the U.S. dollar in and after the middle of the second quarter.

“Combined with these factors, cumulative earning results for the first half surpassed the previous announced forecast,” K-Line added.

With respect to the market outlook, K-line noted that the business environment is likely to continue somewhat uncertain “as containership business begins to enter slack season while dry bulk business may remain under the lasting sluggish market conditions.”

“For these reasons, full-year operating income and ordinary income remains unchanged from the previously announced figures.

However, we expect that consolidated net income exceeding the previous forecast by reviewing items of extra-ordinary profit and loss related to rationalization measures such as sale of assets,” the company concluded.