Japanese carrier “K” Line reported $368 million in net income for its just-ended fiscal year but forecast lower profit and revenue amid a “largely unpredictable” outlook for shipping.
The profit for the fiscal year ended March 31 compared with a $717 million loss a year earlier. Operating revenue rose 17.5 percent to $11.8 billion.
“K” Line forecast $24 million in profit for the current fiscal year. The company cited economic uncertainty, high fuel costs and concerns about the impact of the recent Japan earthquake and tsunami.
“At this time, it is expected that the effects of the Eastern Japan Earthquake will be limited, but circumstances such as trends relating to harm caused by rumors require continued vigilance,” the company said.
“K” Line’s container shipping unit posted ordinary income of $350 million on operating revenue of $5.35 billion.
The carrier said it expects container shipping to remain comparatively healthy but warned that recent weakness in spot rates and rising fuel prices will reduce margins in the months ahead.
Bulk shipping is expected to remain weak and vehicle shipments have been affected by the earthquake. Most of the company’s tankers are operating under long-term contracts.