TOKYO - Mitsui O.S.K. Lines, Ltd. (MOL; President Akimitsu Ashida) today announced the company's top news stories for 2004, as follows:
The consolidated financial results for FY2003, the final year of the MOL next three-year mid-term management plan, marked an all-time high: 92.1 billion yen in operating income, 90.5 billion yen in ordinary income, and 55.3 billion yen in net income. MOL achieved both financial and profit goals in its mid-term management plan MOL next. In addition, the company paid a total dividend for the fiscal year 2003 of 11 yen per share - an interim dividend of 4 yen, a year-end dividend of 6 yen, and a 120-year anniversary commemorative dividend of 1 yen, for more timely distribution of profits to shareholders.
Results for the first half of FY2004 ending September 30, 2004, show the company on a pace to break last year's records, with revenue up 17% from the same period of the previous year, and ordinary income more than doubling. The company paid an interim dividend of 7.5 yen.
The company set forth its new mid-term management plan and financial goals for FY2009, calling for enhanced competitiveness and more aggressive ocean shipping businesses. The plan includes a vessel investment plan that calls for 243 new ships and investment totaling 1.16 trillion yen from FY2004 to FY2009.
Akimitsu Ashida succeeded Kunio Suzuki as MOL President.
Each division continued to expand its fleet, with highlights as follows:
MOL signed a long-term contract with Nippon Steel Corp., JEF Steel, and Shanghai Baosteel Group of China to transport iron ore using the world's largest ore carrier - over 300,000 deadweight tons.
MOL started transport of 360 Shinkansen bullet train cars from Japan to Taiwan in May. By September 2005, the company plans to complete transport of all cars with 30 voyages (12 vehicles per voyage).
The company started all Asia-based transport of equipment for the Sakhalin II Project, Russia's first liquefied natural gas (LNG) project, in July. It will be completed in about two years.
The MOL Group has aggressively developed its ocean consolidation business (OCB) utilizing the group's global network. The company went into full-scale operation of Starlink, which can search not only individual containers, but also stock keeping units (SKUs) from order to delivery of cargo. Our group company was selected as the logistics consolidator for major U.S. sporting goods and fitness equipment manufacturers. (December)
To implement one of the MOL Group's strategies for growth - focusing on the expanding global ocean shipping market, the company renamed the China Strategy Committee as the China and Emerging Market Business Strategy Committee. At the same time, it reorganized the Corporate Planning Division's China Strategy Office as the China and Emerging Market Business Strategy Committee Office.
In China, the company opened four offices, bringing its network of offices to 23.
In addition, MOL announced plans to open offices in Moscow and Vladivostok. (November)
The company renamed its Environment Committee as the CSR and Environment Committee, and established the CSR and Environment Office in the Corporate Planning Division, to further strengthen CSR efforts.
The company developed and tested an onboard wind generation system on an actual ship, and continued work on other technologies for environmental protection such as a ballast water treatment device.
Through a tender offer, MOL acquired shares in Daibiru Corporation - a company founded in 1923 by MOL predecessor Osaka Shosen Kaisha along with Ujigawa Denki and Nihon Denryoku to own and maintain Osaka Shosen Kaisha's head office building.
In a move to strengthen the MOL Group's ferry operations, the company accepted an increase of capital in Kansai Kisen Kaisha through a third-party allocation of shares from 7% to 37%.
The company received the excellence in investor relations award from the Japan Investor Relations Association and led the transport sector in the top rating on corporate disclosure by the Security Analysts Association of Japan. In addition, MOL's annual report was named the best of 2004 in the Nikkei Annual Report Awards sponsored by the Nihon Keizai Shimbun.
MOL's corporate and credit ratings were raised as follows: one level from A to A+ by Japan Credit Rating Agency, Ltd.; two levels from Ba1 to Baa2 by Moody's; and one level from BB+ (positive) to BBB- by Standard and Poor's (S&P). In addition, MOL shares were included in the corporate governance fund created by the Pension Fund Association. It manages Japan's largest employee pension fund that will invest equal amounts in shares of 43 companies selected for their excellent corporate governance.
For further information, please contact:
Hidenori Onuki, Deputy General Manager
Public Relations Office
Tel: 81-3-3581-7015
Fax: 81-3-3581-7705
E-mail: pblmo@mail.mol.co.jp