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"K" LINE REPORTS HIGHER INTERIM PROFITS

“K” LINE REPORTS HIGHER INTERIM PROFITS

   Kawasaki Kisen Kaisha reported a 33-percent increase in
net income for the six-month period ended Sept. 30, but warned of a more intense
competition environment.
    Net profit was Yen2.1 billion ($19 million), compared to Yen1.5 billion
in April-September of last year.
    Operating profit in the latest period was Yen9.8 billion ($91 million),
up 14 percent on the Yen8.6 billion operating income of the corresponding period of 1998.
    Revenue was Yen181.2 billion ($1.7 billion), down from Yen207.1 billion
last year, partly due to the depreciation of the U.S. dollar against the Japanese yen.
    "K" Line attributed the increase in interim profits to an
improvement in its container shipping business, the major activity of the group.
"K" Line cited higher container volumes and increased eastbound freight rates in
the Pacific trade since May.
    "K" Line’s "bulk carrier and car carrier services"
division posted lower results for the latest six-month period. The group’s "tanker
and energy transportation services" division also reported a lower bottom line.
    "K" Line said that it is "keeping an eye on overall
competition moving to be harsher" as the shipping industry is witnessing a series of
mergers and new entrants. The Japanese company said that deregulation of Japanese ports
and logistics businesses are also "making management circumstances more severe."