“K” Line’s profit for fiscal 2008, ended March 31, fell by 61 percent from fiscal 2007 as its revenue fell by 7 percent.
The third-largest Japanese carrier reported a profit of $8.1 million. Operating revenue fell to $12.7 billion from $13.8 billion the prior year.
“K” Line attributed the drop in earnings to the deterioration of the business environment starting in the third quarter, combined with the appreciation of the yen, the decline in dry bulk rates and the drop in demand for cars and containerized cargo.
“K” Line said the number of loaded containers it carried from Asia to North America fell by 13 percent from the previous year.
The number of loaded containers from Asia to North Europe increased by 13 percent year over year, as the company launched several large new container ships.
But the number of loaded containers from Asia to the Mediterranean dropped by 6 percent.
In its car carrier business, the number of cars it transported fell by 9 percent year over year.
One of the few bright spots in the line’s report was its heavy-lift cargo business, where profit continued to grow due to the development of petrochemical plants and other global industrial projects.
Similarly, “K” Line’s coastal shipping cargo in the intra-Asia trade continued to grow, but high fuel prices put pressure on the business.
The line said it has been rationalizing service by reducing, temporarily suspending, integrating services and reviewing service schedules with partners in the CKYH Alliance for almost all major service routes.
The company forecast that its profit for fiscal 2009, ending March 31, 2010 will decline by 80 percent on a 24 percent revenue drop. It said it expects the business environment to deteriorate further because of the global recession.
It expects containership revenue to decrease due partly to worsened freight rates on major service routes, “despite some signs of possibility of an increase in freight rates on some service routes.”
The third-largest Japanese carrier reported a profit of $8.1 million. Operating revenue fell to $12.7 billion from $13.8 billion the prior year.
“K” Line attributed the drop in earnings to the deterioration of the business environment starting in the third quarter, combined with the appreciation of the yen, the decline in dry bulk rates and the drop in demand for cars and containerized cargo.
“K” Line said the number of loaded containers it carried from Asia to North America fell by 13 percent from the previous year.
The number of loaded containers from Asia to North Europe increased by 13 percent year over year, as the company launched several large new container ships.
But the number of loaded containers from Asia to the Mediterranean dropped by 6 percent.
In its car carrier business, the number of cars it transported fell by 9 percent year over year.
One of the few bright spots in the line’s report was its heavy-lift cargo business, where profit continued to grow due to the development of petrochemical plants and other global industrial projects.
Similarly, “K” Line’s coastal shipping cargo in the intra-Asia trade continued to grow, but high fuel prices put pressure on the business.
The line said it has been rationalizing service by reducing, temporarily suspending, integrating services and reviewing service schedules with partners in the CKYH Alliance for almost all major service routes.
The company forecast that its profit for fiscal 2009, ending March 31, 2010 will decline by 80 percent on a 24 percent revenue drop. It said it expects the business environment to deteriorate further because of the global recession.
It expects containership revenue to decrease due partly to worsened freight rates on major service routes, “despite some signs of possibility of an increase in freight rates on some service routes.”