(Immediate Release)

October 27, 2000
Kawasaki Kisen Kaisha, Ltd.
President Yasuhide Sakinaga
(Code No. 9107 Listed on the First Section of the Tokyo Stock Exchange)
For detailed information, contact:
Akira Otsu, General Manager, Accounting Department Tel.03-3595-5634
Makoto Kano, General Manager, Corporate Planning Department Tel:03-3595-5178

 

Revisions to Non-Consolidated Financial Forecasts
for 1st Half and Full Fiscal Year Ending March 31, 2001

It is a pleasure to make the following revisions to the financial forecasts for 1st half and full year of the fiscal year ending March 31, 2001 publicized on May 23, 2000 when results of the Company's activities were announced for the year ended March 31, 2000.

1. Revisions to forecasts for financial achievements (on a non-consolidated basis)
(1)Revisions to financial achievements from April 1, 2000 through September 30, 2000
(Unit: yen in millions)
 
  Operating revenues Ordinary profit Net profit
Announcement on
May 23, 2000 (A)
200,000 8,000 2,000
Revised figures on
October 27, 2000 (B)
210,000 11,000 2,000
Differential (B-A) 10,000 3,000 0
Ratio of
increase/decrease
5.0% 37.5% 0.0%
Actual financial results
of the 1st half of last year
181,158 6,628 2,052


(2)Revisions to forecast for financial achievements on a full-year basis for fiscal year
     ending March 31, 2001
(Unit: yen in millions)
 
  Operating revenues Ordinary profit Net profit
Announcement on
May 23, 2000 (A)
400,000 17,000 4,000
Revised figures on
October 27, 2000 (B)
420,000 22,000 4,000
Differential (B-A) 20,000 5,000 0
Ratio of
increase/decrease
5.0% 29.4% 0.0%
Actual financial results
of last year
362,029 11,133 4,042

2.

Reasons for the present revisions
During the 1st half of fiscal year ending March 31, 2001, the sudden hike of bunker prices gave a negative impact on profitability. We now are able to prospect, however, that operating revenues and ordinary profit will turn out to have improved due to cheaper Yen against the U.S. dollar, and also more favorable markets for trampers and tankers than previously anticipated.

We would like to draw your kind attention to the net profit situation.
In addition to lump-sum amortization of differentials incurred by introduction of retirement benefit accounting at the time of the change in accounting standards which was already anticipated in our previous prospect, a special account for losses related to investment securities turns out to have increased on an actual basis as compared with the previous prospect. As a result, the net profit remained at the same level as previously forecast despite ordinary profit improving by a significant extent.

In terms of the 2nd half, business circumstances seem to look stable from an overall perspective despite record high bunker prices still remaining. We prospect that both operating revenues and ordinary profit should improve on an annual basis as compared with earlier prospects. In the meantime, annualized net profit will remain at an even level with that previously prospected in view of possible losses incurred through ownership transfer of high-cost ship(s) and so on.

As of May 25, 2000, we prospected that bunker price would be U.S. $135.00 per ton. As a result of our review, we would like to revise that bunker price figure to U.S. $170.00 per ton on the assumption for the 2nd half of fiscal year ending March 31, 2001.

For your guidance:
3. Prospects for consolidated financial achievements
Diligent work is in progress to determine final results of the 1st half and prospecting the annualized financial achievements for the fiscal year ending March 31, 2001.
During the 1st half, in addition to upward revisions on a non-consolidated basis as explained above, domestic port business and overseas agents have been expanding their financial achievements. As a result, operating revenues have turned out to be Yen 270,000 million against Yen 265,000 million with ordinary profit rising to Yen 14,000 million from Yen 11,000 million, each of which goes beyond that which was previously prospected.
Interim net profit, however, turns out to have fallen somewhat under what was previously anticipated: Yen 1,100 million against Yen 1,500 million due to lump-sum amortization of differentials incurred by introduction of retirement benefit accounting at the time of the change in accounting standards, and due furthermore to a special account for losses related to investment securities increasing on an actual basis.
In terms of prospective financial achievements on a full-year basis, we would like to inform you that operating revenues are expected to amount to Yen 550,000 million, ordinary profit Yen 26,000 million and net profit Yen 3,000 million.

Your kind attention to the above will be highly appreciated.


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