K Line announced a net profit of JPY4.28bn ($42.23m) for the first quarter ended 30 June 2014 compared to a JPY6.98bn net profit in the same period a year earlier.
Revenues also fell in the first quarter to JPY295.7bn compared to JPY319.8bn a year earlier.
Explaining the drop in profitability K Line said: “In the business environment surrounding the shipping industry, we saw some negative factors toward our operating result such as continued shrinking trend in ex-Japan cargoes in the car carrier business, a decline freight rates in the dry bulk business.
“However, we saw a positive trend in the containership business where we saw an upward trend in freight rates for Europe-bound routes that had long been low.”
In terms of industry segment, all sectors were profitable for K line with the exception of offshore energy E&P support and heavy lifter which saw a JPY1.9bn loss.
Looking ahead K Line maintained its forecast of a JPY18bn profit for the year ended 31 March 2015.
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