“K” LINE CUTS BACK PROFIT FORECAST

“K” LINE CUTS BACK PROFIT FORECAST

“K” LINE CUTS BACK PROFIT FORECAST

   Kawasaki Kisen Kaisha, Ltd., the Japanese shipping group, has revised from Yen10 billion ($76 million) to Yen4 billion ($30 million) its forecast consolidated net income for the current fiscal year ending March 31.
   The group’s forecast consolidated ordinary income has also been trimmed back from Yen21.5 billion ($163 million) to Yen10.5 billion ($80 million), and consolidated revenues have been revised downwards from Yen585 billion ($4.43 billion) to Yen575 billion ($4.36 billion).
   Commenting on the reasons for the sharp reduction of its profit forecast, “K” Line said: “The global economy has continued in recession since the latter half of 2000 triggered by the IT depression in the U.S.A.”
   “In fact, the supply and demand of space of containerships has widened and the freight rates tended to be softer during the 1st half of fiscal 2001,” it added.
   “K” Line also cited the adverse effects of the Sept. 11 terrorist attacks on America.
   “The attacks had a strong negative impact on cargo movement that eventually plummeted a great deal during the 4th quarter (October/December 2001) as compared with the previous quarter, and also caused freight rates to drop even more than expected,” it said. “Furthermore, both tramp and tanker businesses are experiencing a soft market.”
   The Japanese group said that it is unable to expect a recovery during the remainder of fiscal 2001, ending at the end of March.
   In the previous fiscal year, ended on March 31, 2001, “K” Line had earned a consolidated net income of Yen1.9 billion ($16 million) on revenues of Yen558 billion ($4.5 billion).