JAPAN’S K Line has posted a decline in revenue and ordinary income for the first quarter of the 2023 financial year.
Operating revenues for the first quarter of the 2023 financial year came ¥222 billion, down 2.7% on figures reported in the same period last year.
Ordinary income was down 81.6%, from ¥267 billion in the first quarter of the 2022 financial year to ¥49 billion in the same quarter of this year.
But operating income grew 4%, from ¥18.8 billion in the first quarter of 2022 to ¥19.6 billion in the same period this year.
“Despite a softening of conditions in the dry bulk market due to a drop in transport demand, operating income grew thanks to an increase in the number of vehicles handled by Car Carrier Business,” the company said in a statement.
It said a recovery trend in the car carrier business continued as supply shortages for semiconductors and auto parts eased, along with a gradual decrease in their impact on vehicle production and shipments.
“We continue efforts to restore freight rates and improve operational efficiency.”
It added that the business performance of containership business Ocean Network Express “remained weak” as a result of a decline in short term freight rates.
“This was due to a slump in transport demand, along with the normalisation of supply chains after disruptions.”
Ordinary income for the containership business segment was ¥25.5 billion, down 89% from the ¥238.2 posted in the first quarter of 2022.
Looking ahead, K Line expects operating income to increase by ¥10.2 billion compared to that of the 2022 financial year based on “steady performance” anticipated for the car carrier business, despite a softening of the dry bulk market.
In expects ordinary income for reach ¥135 billion as the containership market “gradually stabilises” in comparison to the 2022 financial year.