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K Line nine month profits fall, lowers full year forecast

K Line nine month profits fall, lowers full year forecast
Kawasaki Kisen Kaisha (K Line) reported a fall in profit for the first nine months of the year and has revised down its full year profit forecast.

K Line reported a net profit of JPY9.27bn ($76.9m) for the three quarters ended 31 December 2015, compared to a JPY33bn in the same period a year earlier. Revenues were slightly down at JPY977.8bn for the first nine months JPY1.02trn a year earlier.

In a sign that K Line is expecting a loss making fourth quarter the company revised down its full year profit forecast to JPY7bn, less that it made in the first three quarters of the year, and down from JPY12bn forecast previously.

K Line said that the reduction in its profit forecast reflected the poor performance of the dry bulk and container shipping markets.

The company said the reason for the revision was due to, “A large number of newbuildings’ delivery, while cargo movements’ growth remained low, expanded the imbalance between supply and demand in shipping capacity in containership business; and in addition, a decrease of demand following Chinese economic deceleration in dry bulk business brought sluggish market.

“Despite the efforts to improve profitability by conducting efficient fleet assignments and cutting operating costs, based on the prospect of the continuous sluggish market mainly in containership business and dry bulk business, we revised downward financial results for the full year as aforementioned.”