'K' Line Q2 profits fall 38.6pc to US$42.2 million, revenues rise 8.1pc

'K' Line Q2 profits fall 38.6pc to US$42.2 million, revenues rise 8.1pc"K" LINE, the smallest of Japan's Big Three, has posted a 38.6 per cent second quarter net profit decline to JPY4.3 billion (US$42.2 million), drawn on revenues of JPY319.8 billion, up 8.1 per cent.

While the company reported improved quarterly container revenues, this was offset by lower dry bulk rates. As for container shipping, "K" Line saw income improve to JPY2.2 billion from a zero the year before as rates and volumes increased.

The container division is also on track to reduce costs by JPY4 billion in the second quarter, compared with the original target of JPY2.2 billion, said the company.

"K" Line's car carriers were also struggling with lower exports from Japan, as its volume fell five per cent year on year to 821,000 units.

Losses from its offshore and heavylift business widened 58.3 per cent to JPY1.9 billion year on year, attributed to foreign exchange fluctuations and a poor business environment.

Despite these setbacks, "K" Line has kept its forecast of net profit of JPY18 billion and increased its operating revenues prediction by 1.6 per cent.