Kawasaki Kisen's profit falls on shipping rates, fuel costs

Kawasaki Kisen Kaisha Ltd., Japan's third-largest shipping line, said first-half profit fell 41 percent as a rise in fuel costs and lower rates for transporting containers curbed earnings.Net income dropped to 20.6 billion yen ($175 million), or 34.75 yen a share, in the six months ended Sept. 30, from 34.9 billion yen, or 58.97 yen a share, in the same period last year, the Tokyo-based company said in a statement today. Sales grew 14 percent to 518 billion yen.Like other sea carries, K-Line, as the company is known, is paying more for bunker fuel. Earnings in the industry have been further crimped by lower charges to carry goods in containers, as a record number of ships are entering the global fleet.Kawasaki Kisen raised its full-year net income forecast by 21 percent. The company expects net income of 51 billion yen for the year ending March 2007, compared with a previous forecast of 42 billion yen.The average price of 380 Centistoke marine bunker fuel, used by ships, rose 11 percent to $318.50 per metric ton in Singapore in the July to September quarter, according to Bloomberg data.