TOKYO -- On Wednesday NYK and "K" Line separately forecast group operating profits will rise sharply in the current fiscal year ending in March, 2008, helped by higher shipping rates to Europe.
Japan's largest shipping conglomerate, NYK, said in a release that it expects group operating profits in fiscal 2007 to rise 30.5 percent from the previous year to 137 billion yen ($1.15 billion), while "K" Line, Japan's third-ranking transport group, expects consolidated operating profit to increase 53.2 percent $790 million.
The two companies both saw sales rise at a double-digit pace in fiscal 2006 but suffered sharp drops in operating profits due largely to higher bunker prices.
Net income for NYK will increase 26.1 percent to about $690 million on revenue 3.5 percent higher at approximately $19 billion in fiscal 2007. "K" Line said net income will grow 22.3 percent to $530 million on sales up 10.5 percent to $10 billion.
In fiscal 2006 NYK's operating profit fell to $882 million, down 25.3 percent from the previous year on sales that were up 12.2 percent to $18 billion. Net income tumbled 29.4 percent to $546 million.
Operating profit for "K" Line in fiscal 2006 reached $512 million, down 30.3 percent on-year despite sales up 15.4 percent to $9 billion. Net income was $429 million, down 17.5 percent.