"K" LINE CEO Eizo Murakami says the Japanese shipping giant will continue to secure "financial stability" and strengthen the company's "growth potential" but that full recovery was no longer on the horizon.
"Given stagnating resources demand, as well as rising geopolitical risks, the business environment continues to be uncertain in the second half," said Mr Murakami.
"We anticipate that some more time will be required before we see full-scale market recovery," he said.
Mr Murakami said the company will now "formulate and execute streamlining measures. We will stay on schedule with strategic investment aimed at growth in energy transportation and other sectors, as well as in investment to expand our base for stable earnings with the introduction of the latest large energy-saving vessels".
Reflecting on the first half of this fiscal year, Mr Murakami said the company benefited from falling fuel oil prices and a continually weakening yen.
At the same time, it was exposed to tough market conditions, particularly in the containership and dry bulk businesses, as cargo movement fell below expectations while supply pressure on shipping capacity intensified, he said.
Nonetheless, a number of businesses showed steady performance, he said. "They included the car carrier business, which, in addition to the movement of completed cars, is advancing initiatives aimed at heavy construction equipment and rail cars with the use of the latest large energy-saving vessels," he said.
The energy transportation business centred on LNG carriers, large LPG carriers and tankers provided stable income based on medium- and long-term contracts; and the logistics business was expanding its operations in various regions, he said.
"Accordingly, overall earnings exceeded initial estimations despite being influenced by fluctuations in foreign exchange-related profit and loss," Mr Murakami said.
MARKETS
08 January 2016 - 22:58
Full market recovery no longer in sight, says 'K' Line president
"K" LINE CEO Eizo Murakami says the Japanese shipping giant will continue to secure "financial stability" and strengthen the company's "growth potential" but that full recovery was no longer on the horizon.
MARKETS
08 January 2016 - 22:58
Full market recovery no longer in sight, says 'K' Line president
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