Kawasaki Kisen Kaisha, Ltd. Business Report the 147Th Term
(Note) This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. BUSINESS REPORT The 147th term (from April 1, 2014 to March 31, 2015) Kawasaki Kisen Kaisha, Ltd. Dear shareholders, First of all, I would like to express my sincere gratitude to you, our shareholders, for your continued support. My name is Eizo Murakami, and I am honored to have assumed my new role as President and CEO of Kawasaki Kisen Kaisha, Ltd. (“K” Line) on April 1, 2015. With the delivery of the report of our business results, I would like to mention a few points that I believe are worth sharing with you. The year FY2014 (April 1, 2014 to March 31, 2015) was the final year of our three-year medium- term management plan, “K” LINE Vision 100 - Bridge to the Future - announced in April 2012. We are proud to have accomplished our targets in major items set forth in the management plan. Looking back at the year FY2014, the overall global economy experienced a modest recovery supported by the steady recovery of the U.S. economy, although the economic outlook has become increasingly uncertain due to negative factors such as the impact of slowing economies in resource- rich countries caused by a drop in crude oil prices, concerns over stagnant economic growth in the euro zone, and the slowing down of China’s economy. Under such circumstances, the “K” Line Group achieved, despite the stagnation in the dry bulk sector, increases in revenues and income, reflecting factors such as a recovery in freight rates mainly of the North America route in the containership sector, the weakening Japanese yen, a drop in fuel oil prices since last summer, as well as our cost- cutting efforts by promoting slow steaming and improving the efficiency of vessel operations.
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