?K? Line reports sharp jump in profits

ôKö Line reports sharp jump in profits    Japanese carrier “K” Line had net income of 68 billion yen ($596 million) for the nine-month period ending Dec. 31, a 91 percent increase from 35.6 billion yen earned in the same 2006 period.
Consolidated operating revenue for the nine-month period increased 23 percent to 984.6 billion yen ($8.6 billion)from 800.5 billion yen in the year-earlier period.
   In container shipping business, 'K' Line said growth of cargo movements shipped from Asia to North America in the last three months of 2007 “slowed down due to sluggish cargo movements of housing-related products originated in subprime lending. However, cargo tonnages and freight rates exceeded those in the same period last year.”
   In the Asia/Europe trade it said cargo movements to major European countries grew steadily, and that volumes to countries in Eastern Europe and the Mediterranean also increased.
   “Overall operating results of the containership business increased in both operating revenues and profits compared with the same period last year, but the level of profits came under the initial projections, hit partly by further hiking fuel oil prices,” “K” Line said.
   The company said its dry bulk and car carrier businesses increased operating revenues and profits when compared to the same 2006 period. It “secured stable profits by concluding long-term transportation agreement with each customer in the transportation services of coal and iron ore, thermal coal, and woodchip and pulp, and at the same time, enjoyed significantly hiked spot freight rates mainly for small- and medium sized bulk carriers.”
   The company said it transported 8 percent more cars than in the same 2006 period.
   “K” Line also saw a rise in operating revenues for its tanker and energy transportation business, but a decline in profits compared with the same period the prior year.
   Looking forward, the company said it expected for the fiscal year ending March 31 that consolidated revenue would reach 1.3 trillion yen and net income 84 billion yen
   In the current quarter “demand for containerships is expected to decrease due to the off-season. However, the dry bulk carrier business will see no change in the underlying trend of brisk demand, and freight rates are expected to remain at high levels even if there is an adjustment phase temporarily.”
   The car carrier and energy transportation business were also expected to secure steady profits.