(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 firstname.lastname@example.org; Kyung Bok Cho at email@example.com
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