| Annual Report 1999 | (For year ended March 31,1999) |
Business Review |
| Marine Transportation |
| Coastal Shipping |
 |
| Kawasaki Kinkai Kisen Kaisha, Ltd. | |
This year you are newly briefed upon marine
transportation by Kawasaki Kinkai Kisen Kaisha, Ltd. in its services between Southeast
Asia the South-Seas and Japan and in the Japanese domestic seas. Under the harsh economic
circumstances prevailing in Japan and Asia, the company doubled up its efforts for
development of business scale and cost savings. In March, 1998, it successfully threw the
"Silver Queen", a newbuilding into a passenger and cargo ferry service between
Tomakomai and Hachinohe so that it can provide customers with better transportation
service. In total, it posted ¥23,828 million of operating revenues including other revenues amounting to ¥102 million with net income of ¥543 million. |
|
| Tramp and Liner Division-Near Seas (covering the geographic scope from Japan to Southeast Asia and the South-Seas) | |
| In the Tramp sector, coal and lumber from the
South-Seas declined in cargo movement. Since they are the main import items into Japan,
the sluggish cargo flows produced a drop in freight rates. In the meantime, efforts were
made to downsize the fleet into an optimal size and to cut down on vessels and operational
expenses. In the Liner sector, an increase in profit could be attained to, despite a drop in operational revenues on the outward service routes from Japan to Hong Kong/the Straits and to Bangkok by token of reinforcement in sales work on the general cargo market and upgrade in efficiency of ship operation. On the inward service route from Sabah and Sarawak, wooden products including plywood declined to a significant extent in cargo movement. The Division attained to a total of ¥9,313 million of operational revenues. |
|
| Coastal Shipping Division-Japanese Domestic Seas | |
| In the Tramp Sector operational revenues
decreased due to a fall in freight rates in terms of steel-product carriers and
general-purpose carriers meanwhile a constant volume of cargo could be secured for
limestone carriers and coal carriers. Simultaneously, a series of work on reforms was
being practiced against loss-making ships and for cost reduction. In the Liner sector, part of the paper and pulp industries in Japan began to slow down production, resulting in a drop in cargo movement and in operational profit. With cost-reduction effect in place, however, the sector could attain to an increase in revenues and profit as compared with last year. The Divison attained to a total of ¥8,702 million of operational revenues. |
|
| Ferry Service Division | |
| On the aforementioned Tomakomai/Hachinohe ferry
service route, the "Silver Queen" could increase the carrying capacity and
contributed to a huge increase in operating revenues effectively backed up by positive
sales activities. Contrarily, on the Tomakomai/Tokyo service routes, forest goods and
light-industry commodities declined in volume and in ocean freight rates, falling much
under last year. The Division attained to a total of ¥5,710 million of operational revenues. |
|
| Outlook for Fiscal 1999 | |
| The Company, in response to the needs of times, is substantially challenging to the "Modal Shift" which is being promoted on a governmental and private basis. The Coastal Shipping has gained the top priority as a means of transportation within Japan because it is regarded the best and most economical for a long-haul transportation and more importantly, the most harmless (graceful) to earthly environment. It is firmly convinced that input of new upgraded ships should contribute to development of present and new markets. The newbuildings are listed up: | |
| * | In May 1999 the Chizukawa Maru limestone carrier charted. |
| * | In September 1999 the Hokkaido Maru cargo ferry (roll-on/roll-off) will be completed to enter service at a speed of 30 knots, a world-top velocity for cargo ships weighing over 10,000 gross tons and to perform truly as a modernized ship in conformity with the national-government policy of the "Modal Shift," a shift in transportation mode from land to sea for cleaner carriage, the core part of logistics towards the 21st century. |
| * | In November and December 1999 two roll-on/ roll-off vessels for transportation of paper in roll, general cargo and vehicles will be operated. |
| Main Financial Date Kawasaki Kinkai Kisen Kaisha, Ltd, Years Ended March 31 |
| Millions of yen | |||||
| 1999 | 1998 | 1997 | 1996 | 1995 | |
| Total Assets | ¥25,915 |
¥24,534 |
¥22,368 |
¥21,080 | ¥21,964 |
| Total Revenues | 23,897 |
25,766 |
25,181 |
23,893 | 23,572 |
| Net income | 543 | 448 | 474 | 705 | 612 |
| Yen | |||||
| Shareholders' Equity per Share | ¥314.03 | ¥302.12 | ¥294.43 | ¥285.73 | ¥270.67 |
| Cash Dividends per Share | 5.00 | 5.00 | 6.00 | 6.00 | 5.00 |