Asia/Pacific News
K Line Revenues Up, But Profits Decline
Japanese carrier company Kawasaki Kisen Kaisha Ltd. (K Line) reports that its operating revenues rose 8.1 percent to ¥319.8 billion ($3.1 billion), while profits fell 38.6 percent to ¥4.3 billion ($41.8 million).
Citing a mixed economic picture, with some signs of recovery in the U.S., Europe, and China, but a continued slowdown in India, K Line reported a positive trend in containership business with more freight headed for Europe.
On the other hand, shrinking shipments of cars from Japan and reduced rates in the dry bulk market hurt the company's bottom line.
K Line said it paid an average of $615 per metric tonne (pmt) for fuel during the quarter compared with $638 pmt for the same period last year.
The company said it is working to make its vessel allocations more efficient in the dry bulk, LNG and oil tanker, and short-sea divisions.
The company now predicts it will pay an average of $618 pmt for fuel over the full fiscal year, down from a projected cost of $621 predicted in April.
Early this year, K Line and other carriers formed the CKYH alliance to make more efficient use of the member-companies' ships.
