"K" Line Reports Third Quarter Financial Results; Revenues, Income Sharply Higher.Tokyo, Japan, Feb 1, 2008 - (JCN JCN Japan Corporate News JCN Journal of Cognitive Neuroscience JCN Journal of Cardiovascular Nursing JCN Journal of Christian Nursing JCN Job Control Number JCN Journal of Child Neurology JCN joint communications network (US DoD) Newswire) - Kawasaki Kisen Kaisha, Ltd. ("K" Line; TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). : 9107), a global shipping company with highly-developed operations encompassing all sectors of the shipping industry, has announced 3rd Quarter results through December 31, 2007. Deploying aggressive business operations Business operations are those activities involved in the running of a business for the purpose of producing value for the stakeholders. Compare business processes. The outcome of business operations is the harvesting of value from assets in accordance with the policies under the "K" LINE Vision 2008+, the Group posted consolidated operating revenues operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. for the 3rd Quarter of fiscal 2007 accounted for JPY JPY In currencies, this is the abbreviation for the Japanese Yen. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 984.6 billion, an increases by JPY 184.1 billion compared with the same period last year. Consolidated operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. was JPY 100.6 billion, an increase by JPY 60.9 billion compared with the same period last year, and ordinary income was JPY 100.9 billion, an increase by JPY 59.2 billion compared with the same period last year. Consolidated net income for the 3rd Quarter was JPY 67.9 billion, an increase by JPY 32.4 billion compared with the same period last year. Consolidated performances for the 3rd Quarter significantly improved compared with the same period last year. I. Summary of Consolidated Operating Results for the 3rd Quarter ending December 31, 2007
(Millions of Yen/Thousands of U.S. Dollars)
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9 months 9 months 9 months Year
ended ended ended ended
12/31/07 12/31/07 12/31/07 3/31/07
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Consolidated Yen Yen USD Yen
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Operating revenues 984,643 800,517 8,625,876 1,085,539
Operating Income 100,690 39,720 882,088 61,356
Net income 67,993 35,580 595,651 51,514
Per share of Common stock 107.86 60.14 0.94 86.67
Total Assets 940,288 846,467 8,237,304 900,438
Net assets 405,414 317,719 3,551,595 357,624
Per share of Common stock 614.64 515.73 5.38 556.55
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Non-consolidated
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Operating revenues 802,099 632,751 7,019,440 857,279
Operating Income 72,551 16,253 635,577 28,103
Net income 50,082 14,722 438,745 25,250
Per share of Common stock 79.38 24.86 0.70 42.45
Total Assets 557,389 537,850 4,882,958 518,500
Net assets 276,179 208,827 2,419,424 241,181
Per share of Common stock 433.21 352.64 3.80 389.35
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* U.S. Dollar amounts are converted from the yen amount at
JPY 114.15/U.S.$1.00, exchange rate prevailing on Dec 31, 2007.
(1) Marine Transportation Containership Business In the Asia/North America services, the growth of cargo movements shipped from Asia slowed down due to sluggish cargo movements of housing-related products originated in subprime lending  This article or section may deal primarily with the U.S. and may not present a worldwide view. . However, cargo
tonnages and freight rates Noun 1. freight rate - the charge for transporting something by common carrier; "we pay the freight"; "the freight rate is usually cheaper"freightage, freight exceeded those in the same period last year respectively. In the Asia/Europe services, cargo movements to major European countries grew steadily, and those for the Eastern Europe Eastern Europe The countries of eastern Europe, especially those that were allied with the USSR in the Warsaw Pact, which was established in 1955 and dissolved in 1991. and the Mediterranean Sea Mediterranean Sea [Lat.,=in the midst of lands], the world's largest inland sea, c.965,000 sq mi (2,499,350 sq km), surrounded by Europe, Asia, and Africa. Geography The Mediterranean is c.2,400 mi (3,900 km) long with a maximum width of c. also increased favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. . The Company's tonnage TONNAGE, mar. law. The capacity of a ship or vessel. 2. The act of congress of March 2, 1799, s. 64, 1 Story's L. U. S. 630, directs that to ascertain the tonnage of any ship or vessel, the surveyor, &c. movement continued to grow significantly by 17% from the same period last year contributed partly by launching of large-sized 8,000 TEU TEU Twenty-Foot Equivalent Units (intermodal shipping container) TEU Technical Escort Unit TEU Technical Escort Unit (Army) TEU Tactical Enforcement Unit TEU Treaty of European Union type containerships, and levels of freight rates exceeded substantially those in the same period a year earlier. In the Inter-Asia services, export cargo steadily increased, which contributed to the growth of the overall tonnage movements in the services. Cargo movements and freight rates in the North/South service routes grew steadily, surpassing those in the same period last year. As a result, the overall operating results of the containership business increased in both operating revenues and profits compared with the same period last year, but the level of profits came under the initial projections, hit partly by further hiking hiking Walking, often among hills or mountains, as recreational sport. It represents an activity in its own right and also figures in backpacking, camping, hunting, mountaineering, and orienteering. fuel oil prices. Bulk Carrier and Car Carrier Business In the dry bulk transport, market freight rates both for large-sized bulk carriers and small- and medium-sized carriers exceeded those in the same period last year through the 3rd Quarter of fiscal 2007. The Company secured stable profits by concluding a long-term transportation agreement with each customer in the transportation services of coal and iron ore, thermal coal and woodchip Woodchip may refer to: -
With respect to the car carrier business, demand for shipping spaces continued to exceed supply capacity, since auto sales Auto Sales The major producers of domestic automobiles report sales monthly. These numbers are seasonally adjusted by the U.S. Department of Commerce and are available to the public one to five business days after the end of each month. maintained constant growth in resources producing countries of Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. and Caribbean region, Middle East and Africa, as well as in Europe being benefited from stronger euro and briskly brisk adj. brisk·er, brisk·est 1. Marked by speed, liveliness, and vigor; energetic: had a brisk walk in the park. 2. growing Eastern Europe and Russia. The total number of cars transported by the Company increased about 8% from the same period last year, and the car carrier business secured constant earnings. Operating results of the overall dry bulk carrier and car carrier business for the 3rd Quarter of fiscal 2007 increased both in operating revenues and profits compared with the same period last year. Energy Transportation and Tanker Business As for LNG LNG (liquefied natural gas): see under natural gas. transportation, the newly built carrier for the Cheniere Project operated solely by the "K" Line Group was completed during the 3rd Quarter, and the fleet of LNG tankers increased to 32 carriers. In addition, the LNG tanker chartered for a short-term corresponding to strong spot demand operated smoothly. As a result, the energy transportation business secured stable profits. In the tanker business, operating results came under those in the same period last year due to softened soft·en v. soft·ened, soft·en·ing, soft·ens v.tr. 1. To make soft or softer. 2. To undermine or reduce the strength, morale, or resistance of. 3. freight rates amid continuously surging fuel oil prices. The overall operating results of the energy transportation and tanker business saw a rise in operating revenues but a decline in profits compared with the same period last year. In the coastal shipping business, the Company actively promoted to ensure transportation volume, by replacing a former bulk limestone carrier with a newly built large-sized bulk limestone carrier in October 2007 to correspond to robust domestic demand for transportation of raw materials and by exchanging ships in the regular roll-on roll-off Noun 1. roll-on roll-off - a method of transport (as a ferry or train or plane) that vehicles roll onto at the beginning and roll off of at the destination services. The Hachinohe/Tomakomai ferry services were able to increase transportation volumes by increasing convenience for customers under the four-services-per-day system. As a result, the overall operating revenues for marine transportation amounted to JPY 872.2 billion, and operating income stood at JPY 88 billion. (2) Logistics/Harbor Transportation With respect to the comprehensive logistics business, competitions intensified in·ten·si·fy v. in·ten·si·fied, in·ten·si·fy·ing, in·ten·si·fies v.tr. 1. To make intense or more intense: in the air cargo air cargo: see aviation. forwarding market due partly to the adverse effects of additional charges following souring aircraft fuel. However, the Company expanded its volumes of transport steadily, due partly to the effects of the reinforced alliance among the Group companies at home and abroad. The overall operating revenues of this business segment were JPY 95.9 billion, and operating income stood at JPY 10.4 billion. (3) Other Businesses As for other businesses not mentioned above, operating revenues amounted to JPY 16.4 billion, and operating income was recorded at JPY 1.9 billion. II. Consolidated Prospects for Fiscal 2007 The Company has not changed prospects for fiscal 2007 forecasted at the publication of consolidated operating results for the first half of fiscal 2007, and expects the consolidated operating results for the full term of fiscal 2007 to be JPY 1,300.0 billion for operating revenues, JPY 128.0 billion for operating income, JPY 128.0 billion for ordinary income and JPY 84.0 billion for net income. In the 4th Quarter of fiscal 2007, demand for containership is expected to decrease due to the off-season. However, the dry bulk carrier business will see no change in the underlying trend of brisk demand, and freight rates are expected to remain at high levels even if there is an adjustment phase temporarily. The car carrier business will be able to secure stable profits thanks to continuously strong cargo movements, and the energy transportation business will also be the same, led by the long-term transportation agreements. Even though there have been severe business circumstances since the start of 2008 such as sharp appreciation of the yen and highly hovering hov·er intr.v. hov·ered, hov·er·ing, hov·ers 1. To remain floating, suspended, or fluttering in the air: gulls hovering over the waves. 2. fuel oil prices, consolidated performances for fiscal 2007 forecasted at the publication of consolidated operating results for the first half of fiscal 2007 is expected to be achieved. In addition, exchange rates and fuel oil prices for the 4th Quarter are estimated to be JPY 105 per US dollar and US$487 per MT respectively. With regard to dividend payment for fiscal 2007, the Company will finalize fi·nal·ize tr.v. fi·nal·ized, fi·nal·iz·ing, fi·nal·iz·es To put into final form; complete or conclude: "They have jointly agreed ... it based on actual operating results for fiscal 2007. However, at present, the Company intends to pay JPY 25 per share for the full-term (of which, JPY 12 was already paid as the interim dividend) as announced on October 30, 2007. About Kawasaki Kisen Kaisha Ltd. Kawasaki Kisen Kaisha Ltd. ("K" LINE) was established in April 1919. Containership services has had the distinction of being the centerpiece of "K" LINE's global sea transportation services. Providing stable and reliable service, this business has been developing and expanding with the present global network offering coverage around the world. By keeping abreast of changing business circumstances and in order to meet customer's requirements, we are also constantly reinforcing our company's international competitiveness. For more information, please visit http://www.kline.co.jp/index_e.html . Source: Kawasaki Kisen Kaisha Ltd. Contact: Kawasaki Kisen Kaisha, Ltd., Tokyo IR & PR Group, Tel.: +81-3-3595-5063 Japan Corporate News Network. All rights reserved. |
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