"K" Line Cuts Executives' Pay
Japanese shipping company Kawasaki Kisen Kaisha ("K" Line) has announced that it has reduced its executives pay by 10 percent for six months, starting April.
The move has been made “in order to clarify our management stance towards recovery of our business performance during 2019 fiscal year. “K” Line and our group companies will continue to strive as one to improve profit and loss under the new management, being strongly determined to make every possible effort to again return to the black in 2019.”
The group's financial results for the fiscal year ending March 31, 2019 showed consolidated operating revenues of 836.7 billion yen ($7.6 billion) , operating loss of 24.7 billion yen ($224 million), ordinary loss of 48.9 billion yen ($443 million), and loss attributable to owners of parent of 111.2 billion yen ($1 billion).
The ordinary loss of 48.9 billion yen exceeded the forecasted loss of 46.0 billion yen due to a dam-break in Brazil in January, which had a larger-than-expected impact on dry bulk market conditions and worsened results by about 1.6 billion yen.
Additionally, impacts were felt due to of the downward revision to ONE’s results announced on October 16, 2018, and the deterioration in the profitability of car carrier business. The group has canceled contracts for six dry bulk vessels and 17 container ships.
The group sees its tanker business improving this year and is moving forward by building up mid-long-term contracts, mainly for LNG vessels that generate stable profit, while also refocusing its portfolio through withdrawal from the clean product tanker market.