Company plans to improve profits by canceling uneconomical charters and “reducing market-exposed fleets.”
Japan’s Kawasaki Kisen Kaisha Ltd. (“K” Line) said Thursday that it expects a sharply higher loss for its fiscal year ending March 30.
According to a press release issued by the company, “K” Line expects a five-fold increase in its net loss attributable to owners of parent to 100 billion yen ($896 million) instead of the 20 billion yen loss forecast on Jan. 31.
“K” Line also said while its forecast of operating revenue of 840 billion yen remains the same, it is increasing its estimate of an operating loss to 21 billion yen from 5 billion yen and its ordinary loss to 46 billion yen instead of its earlier 28 billion yen estimate.
“K” Line, along with NYK and MOL, is an owner of the container carrier Ocean Network Express or ONE.
The company said it plans to carry out business structural reforms, mainly for profitability improvement, and reduce its fleet by canceling charters for uneconomic containerships and small and medium-size dry bulk carriers.
“K” Line said ONE has “settled the teething problems, which had occurred immediately after the commencement of the services, and hereafter has been steadily under the improvement of liftings and space utilization.”