“K” Line announces differences from previously announced forecast of financial results
Kawasaki Kisen Kaisha, Ltd. (“K” Line) announces that differences arose between the consolidated financial results f or the first half (April 1, 2017 – September 30, 2017 ) and the previous forecast that “K” Line announced on July 31, 2017, and that, based on recent performance, the forecast of consolidated financial results for the full year (April 1, 2017 – March 31, 2018 ) has been revised as set forth below.
1. Differences from Forecast of Consolidated Financial Results for the First Half (April 1, 2017 – September 30, 2017)
First Half Note: The Company implemented a ten - for - one stock consolidation as of O ctober 1, 2017. Profit attributable to owners of the parent per share was calculated on the assumption that the stock consolidation was implemented at the beginning of the previous fiscal year.
Although freight rates f or containerships have bottomed out mainly in the Asia - North America and Asia - Europe services, the pace of recovery is slower than expected. In addition, the business environment has changed because of the mergers and business integration between shipping companies, the realignment of alliances, and on - schedule delivery of new large vessels. As a result, the market conditions have become harsher than previously forecasted. In addition to the structural reforms carried out in the previous two fiscal years in order to enhance competitiveness, the Group implemented measures to improve its profitability , including continued cost reduction and improvement of vessel allocation efficiency.
However, the financial results in the first six months of the current fiscal year deteriorated compared with the previous forecast.
Consolidated Financial Forecast for the Full Year (April 1, 2017 - March 31, 2018)
The Company implemented a ten - for - one stock consolidation as of October 1, 2017. Profit attributable to owners of the parent per share was calculated on the assumption that the stock consolidation was implemented at the beginning of the previous fiscal year.
In the third quarter and beyond, the globa l economy is expected to remain on the path of moderate growth on the whole. However, a careful watch should be kept on the economic conditions, as a further rise in geopolitical tensions or the rollback of monetary easing in various countries could cause the economy to slow down. As for the business environment, the market is expected to continue to recover in the dry bulk business, but freights rates for containerships and tankers are likely to remain top - heavy. Therefore, the forecasts of the financial r esults for the full year have been revised as above. The Company will implement the medium - term management plan and strive to improve its profitability through further rationalization.
