Japanese box carrier Kawasaki Kisen Kaisha (K Line) expects a JPY30bn ($391m) net loss for its financial year ending 31 March 2012 due to poor freight rates, Seatrade Asia online reports. The loss was revised from an earlier forecast on 29 July of a JPY2bn net profit.
Revenue is expected to dipped to JPY998bn compared to the July forecast revenue of JPY1.06trn.
“In the second-quarter, freight levels did not recover as anticipated in the leadup to the peak summer season, particularly in containership business, and as a result, a decline in financial results compared to previously announced projection is expected,” K Line said on Monday.
The Japanese firm also projects to experience an extraordinary loss of JPY15.6bn resulting from devaluation of investment securities due to stagnation in the stock market.
It also forecast a first-half (1 April to 30 September, 2011) net loss of JPY16bn on revenue of JPY498bn.
“With concerns about a global recession, it is difficult to be optimistic about the future business environment,” K Line said.
Revenue is expected to dipped to JPY998bn compared to the July forecast revenue of JPY1.06trn.
“In the second-quarter, freight levels did not recover as anticipated in the leadup to the peak summer season, particularly in containership business, and as a result, a decline in financial results compared to previously announced projection is expected,” K Line said on Monday.
The Japanese firm also projects to experience an extraordinary loss of JPY15.6bn resulting from devaluation of investment securities due to stagnation in the stock market.
It also forecast a first-half (1 April to 30 September, 2011) net loss of JPY16bn on revenue of JPY498bn.
“With concerns about a global recession, it is difficult to be optimistic about the future business environment,” K Line said.