TSUNEISHI Group FY 2017 Consolidated Performance Report: A year of steady growth for the different segments and a market upturn with shipbuilding and shipping businesses showing signs of recovery
April 23, 2018
TSUNEISHI HOLDINGS CORPORATION (HQ: 1083 Tsuneishi, Numakuma-cho, Fukuyama, Hiroshima, Japan; President: Hirotatsu Kambara) is pleased to announce the FY2017 consolidated results of the TSUNEISHI Group.
Consolidated sales for TSUNEISHI HOLDINGS (30 companies including TSUNEISHI HOLDINGS) in the fiscal year (January–December 2017) came to 182.1 billion yen, a year-on-year (YOY) decline of 11%.
By segment, the shipbuilding business generated sales of 136.8 billion yen (-11% YOY), but there are signs of market recovery and we received orders for 33 ships in a comeback from the previous year. In our shipping business, the dry bulk market improved for all ship types and container traffic volume also recovered from 2016, resulting in sales of 27.9 billion yen (+3% YOY). With increased production and new businesses launched by consolidated companies in our environment business, we achieved a record high 11.9 billion yen (+5% YOY) in sales. Our energy business earned 23.7 billion yen (+31% YOY) due to factors such as higher unit sales prices triggered by rising oil prices and fuel-oil sales volume growth. Our life & resort business achieved 13.3 billion yen (+2% YOY), with accomplishments such as our MIROKU-NO-SATO amusement park attaining record-breaking visitor numbers with the opening of a new attraction.
Ship orders increased approximately four-fold YOY amid signs of market recovery
Sales in our shipbuilding segment were affected by market stagnation and decreased versus the previous year to 136.8 billion yen. However, the market is showing signs of recovery and the number of ship orders increased approximately four-fold YOY to 33 ships.
As we diversify the types of ships we build (product mix), container carriers account for about 30% of our orders overall. We will also eventually design and develop vessels that comply with new rules for environment / ship hull structure regulations and fully engage in taking orders for these ship types.
Achieved revenue growth with container carrier investment and market recovery
The dry bulk shipping market showed an uptrend for all ship types and container traffic volume recovered from the record-low levels recorded in 2016. The business environment improved significantly, with sales in the shipping business segment reaching 27.9 billion yen.
In our liner business, we invested in new container carriers and expanded our container traffic. We will enhance our market resilience and stabilise business with measures such as dispersing risk and securing steady revenue sources in our overall business, and augmenting cost competitiveness.
Achieved record-high sales for our 50th anniversary by enriching the value chain
We acquired diverse technologies and enriched our value chain extending from sales / environmental consulting through final disposal with active M&A and business investments. By bolstering our acceptance capacity of waste and expanding our recycled product volume, we increased sales 5% YOY for record-high sales of 11.9 billion yen.
In addition to expanding our non-industrial waste business, we will aim to expand our capacity to accept industrial waste in Kanto, a region with demand, and push forward with a stronger growth strategy.
YOY revenue growth of 31%, primarily due to increased sales of petroleum products
Sales reached 23.7 billion yen due to factors such as rising unit sales prices triggered by surging oil prices and growth of fuel-oil sales volume.
Sales volume also increased for vehicle sales and LP gas / electricity sales. Our auto service business has further developed overseas, expanding operations such as selling used car parts and offering vehicle maintenance services in the Philippines and Paraguay. As demand for petroleum oil products continues to decline due to progress in energy conservation, we will strive to stabilise our business by maintaining revenue in existing businesses and developing new businesses.
Life & Resort Business
Enormous growth with enhanced brand value of Bella Vista SPA & MARINA ONOMICHI and opening of the Dinosaur Park at MIROKU-NO-SATO
We achieved sales of 13.3 billion yen with the growth of our key businesses Bella Vista SPA & MARINA ONOMICHI and MIROKU-NO-SATO.
Bella Vista SPA & MARINA ONOMICHI brand value was further enhanced in 2017 with developments such as becoming the host port for the cruise ship guntû, as well as a sightseeing stop for the Twilight Express Mizukaze operated by West Japan Railway Company. MIROKU-NO-SATO opened the Dinosaur Park in April and marked record-high visitor attendance for the year. We will enhance intangible aspects, such as our services and the holding of events throughout the year to build momentum for the 30th anniversary of business in 2019.
For inquiries regarding this matter, please contact:
Marketing & Communication Dept.,
TSUNEISHI HOLDINGS CORPORATION