Kawasaki Kisen Kaisha (K Line) raised its forecast for the year to March 2027 on 23 October, and the gap between the lines of the income statement is the story. Net profit attributable to owners of the parent is now guided at ¥190bn, up ¥55bn from the ¥135bn forecast of 4 August. Operating profit rises only ¥6bn, to ¥91bn from ¥85bn.
Where the upgrade sits
For the full year, ordinary profit is also guided at ¥190bn, up ¥55bn or 40.7% from the earlier ¥135bn. Operating profit rises 7.1%. Revenue is now forecast at ¥1.17tn, up ¥100bn or 9.3% from ¥1.07tn. Earnings per share are guided at ¥316.46, against ¥220.79 before.
| Measure | Previous | Revised | Change |
|---|---|---|---|
| Revenue | 1,070,000 | 1,170,000 | +100,000 (9.3%) |
| Operating profit | 85,000 | 91,000 | +6,000 (7.1%) |
| Ordinary profit | 135,000 | 190,000 | +55,000 (40.7%) |
| Net profit attributable to owners of parent | 135,000 | 190,000 | +55,000 (40.7%) |
For the year to March 2026, K Line reported revenue of ¥1.02tn, operating profit of ¥84.2bn, ordinary profit of ¥109.1bn and net profit of ¥133.0bn. The new net-profit forecast is above that result.
Two different reasons
K Line gives two explanations. Operating profit and revenue were revised mainly because the dry bulk business is expected to keep enjoying firm market conditions.
The larger ordinary- and net-profit changes are tied to something else. Ocean Network Express Pte. Ltd. (ONE), an equity-method affiliate of K Line, runs a container shipping business, and K Line says cargo demand and market conditions there ran ahead of its previous forecast. That is the stated reason for the ordinary and net profit revisions.
The notice does not give a separate figure for ONE's contribution, so the split of the ¥55bn between the two drivers is not stated.
First half
The first-half forecast, covering April to September 2026, was also raised. Revenue is guided at ¥602.0bn (earlier ¥574.5bn), operating profit at ¥51.0bn (¥42.0bn), ordinary profit at ¥118.0bn (¥80.0bn) and net profit at ¥124.5bn (¥86.0bn). First-half earnings per share are guided at ¥203.60. The first-half net-profit forecast is 44.8% above the previous one.
Caveat
The revised figures for the half-year and the full year are forecasts, not results. K Line says they rest on information available on 23 October and that actual results may differ with the business environment. The freight and demand assessments are K Line's own.