Financial results

April 12, 2012


[Business reports]

Tsuneishi Holdings Corporation (headquarters at 1083, Tsuneishi, Numakuma-cho, Fukuyama, Hiroshima; Yasuharu Fushimi, president and chairman of the board) announces financial results for the fiscal year ended December, 2011. In addition to consolidated group sales of 300.9 billion JPY (unchanged YTY) with ordinary profit of 29.5 billion JPY (-4.5% YTY), Tsuneishi also projects sales of 341.7 billion JPY with ordinary profits of 31.8 billion JPY for fiscal 2012.

・Shipbuilding division

Energy conservation and green technology are key

The shipping industry can expect to see increased interest in energy conservation as rising prices for bunker oil used to fuel ships is accompanied by stronger international regulation of CO₂ emissions during 2012. Tsuneishi Shipbuilding's long-term targets for CO₂ reductions include achieving a 20% reduction over 1990 levels by 2013 and a full 40% reduction by 2020. At present, Tsuneishi is involved in joint research with Hiroshima University and in other research programs using a 10th-scale model of the Josho Maru as part of its initiatives to differentiate Tsuneishi products through superior energy-saving performance. Tsuneishi initiatives to strengthen cost competitiveness and provide customers with added value include efforts to reduce lead times and enhance productivity.

Financial results for 2011

Financial uncertainty in Europe and slower recovery of the American economy continue to obscure long-term prospects for the world economy, which combined with historical lows of as little as 70 JPY to the USD, continue to impact the maritime industry and signify continued difficulties for shipbuilders. Although orders for 57 ships ordered at high tonnage values totaled 2.69 million tons overall, consolidated sales for shipbuilding fell to 235.1 billion JPY (-3.4% YTY) with an ordinary profit of 26.1 billion JPY (-8.4% YTY). Prospects for fiscal 2012 include orders for 67 ships port and total sales of 265.9 billion JPY with ordinary profit of 27.6 billion JPY.

・Maritime transport division

Expanding warehouse space: Completion of Warehouse No. 2 at the Fukuyama Logistics Center

Construction of Warehouse No. 2 at the Fukuyama Logistics Center was completed in January, 2012, as a part of plans for handling ever larger volumes of materials through our comprehensive system of logistic services, including overseas transport, customs clearance, storage, and delivery. In addition, a 400 kW solar panel system was installed on our existing Warehouse No. 1 as a part of initiatives to reduce CO₂ emissions. A fourth warehouse has been built at our facility in Shibushi, Kagoshima, where Tsuneishi Group company Yamashia Kaiso has been handling operations since December of last year.

Financial results for 2011

Although impacted by drops in production and a strong yen, which resulted in fewer total exports than last year, liner service showed increases in export volumes as well as materials shipped to Southeast Asia and India, resulting in an all-time high of 164,829 TEU for the year. In addition, tramp service added four new ships this year--two type-98 bulk carriers and two type-58 bulk carriers--bringing the fleet to a total of 28 ships. As a result, overall sales for maritime shipping services totaled 63.4 billion JPY (+12% YTY) with an ordinary profit of 5.2 billion JPY (+36.8% YTY). Prospects for fiscal 2012 include total sales of 62.3 billion JPY with an ordinary profit of 2.7 billion JPY.