'K' Line posts 47pc profit hike to US$193.5 million as revenue falls 8pc

JAPAN's No 3 shipping giant, "K" Line, has posted a 47 per cent year-on-year net profit increase for the six months ending September 30 to US$193.5 million, drawn on revenues of $4.08 billion, down eight per cent.

During April through September, "the world economy saw a mild recovery while the pace of recovery from the economic downturn slowed in Europe", said the company said.

Because of these developments, the company's overall volume increased five per cent.

"Our average freight rate improved as compared with the year-ago period due to the restoration of freight rates for short term contracts in Asia-Europe service," said the "K" Line statement.

"In addition to these conditions, our continued efforts for cost cutting including slow steaming increased our revenues and income," the company said.

"The number of loaded containers increased by eight per cent in Asia-America and Asia-Europe services as compared with a year ago, while decreased by two per cent in intra-Asia and North-South services," said the company.

"As a result of these developments, we posted increased revenues and income in the containership segment as compared with the year-ago period."

"K" Line logistics continued "fairly strong" in the Japanese domestic market, and as a whole, the company posted year-on-year profit and revenue increases.

"In international logistics, we handled an increased volume of ex-Japan air cargo supported in part by the effect of the weakening yen," said the company statement.

"In emerging economies, China showed recurrence of slowing down in growth while the growth rate appeared to have bottomed out in India.

"Our domestic economy as a whole maintained the momentum for the recovery although there was a temporary decline in capital investment and private consumption after consumption tax hike," said the statement.

"In the business environment surrounding the shipping industry, we saw declining trends in volume of ex-Japan cargoes in car carrier business as well as in freight rates market in the dry bulk business sector," said "K" Line.