Bloomberg News

Kawasaki Kisen Tumbles to Nine-Year Low on Loss Forecast

October 04, 2011

(Updates with closing share prices in second paragraph.)

Oct. 4 (Bloomberg) -- Kawasaki Kisen Kaisha Ltd., Japan’s third-largest shipping line, tumbled to the lowest in nine years after scrapping a profit forecast and predicting a 30 billion yen ($390 million) annual loss.

K-Line tumbled 4.5 percent to 148 yen in Tokyo, its lowest close since September 2002. Nippon Yusen K.K., Japan’s largest shipping line, fell 4 percent to 194 yen and second-ranked Mitsui O.S.K. Lines Ltd. dropped 3.9 percent to 268 yen.

Tokyo-based K-Line expects an unprofitable year because of a 15.6 billion yen loss from investments, the stronger yen and slumping container-shipping rates, it said in a statement yesterday. Mitsui O.S.K. also last week forecast a loss in the half-year ended Sept. 30, compared with an earlier prediction for a profit.

“Kawasaki Kisen’s loss forecast is bigger than I expected,” said Ryota Himeno, an analyst at Mitsubishi UFJ Morgan Stanley Securities Co. “It’s hard to see them returning to profit next year with rates so low.”

K-Line expects its container unit to make a 33 billion yen full-year current loss compared with an earlier prediction for a 10.5 billion yen loss, according to the statement. Container lines were this year forced to delay the introduction of peak- season surcharges on Asia-U.S. routes because of overcapacity and slowing demand.

K-Line in July forecast 2 billion yen full-year net income.

--Editors: Neil Denslow, Vipin V. Nair

To contact the reporters on this story: Chris Cooper in Tokyo at ccooper1@bloomberg.net; Kyung Bok Cho at kcho7@bloomberg.net

To contact the editor responsible for this story: Neil Denslow at ndenslow@bloomberg.net.


Later, Baby
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

 
blog comments powered by Disqus