Japan’s K Line has made a downward revision to its profit forecast for the full financial year in response to the decline in its container shipping business and changes in the yen-dollar exchange rate.
The Tokyo Stock Exchange-listed company is now forecasting profits attributable to the owners of the parent of ¥650bn ($5bn) for the financial year to the end of March, compared with the previous figure of ¥700bn.
Sales will remain firm, with operating revenues of ¥940bn forecast for the full year, compared with the previous prediction of ¥920bn.
“In the container ship business, recovery of transportation demand and short-term freight market conditions will take time, and the recovery in the current fiscal year is expected to be modest due to seasonal factors such as the Chinese New Year holiday in the fourth quarter,” K Line said.
K Line operates in the container ship business through its joint venture subsidiary Ocean Network Express (ONE).
The profit forecast revision was made at the announcement of K Line’s third-quarter earnings.
It reported operating revenues of ¥728.7bn in the nine months to the end of December, up from ¥556.4bn a year earlier.
Profit attributable to the owners of the parent was ¥638.2bn, compared with ¥423.3bn year on year.
Most of K Line’s profits have been generated through ONE. The liner subsidiary accounted for ¥72.5bn of K Line’s third-quarter earnings and ¥567bn of earnings for the year to the end of the third quarter.
