TSUNEISHI Holdings Corporation (Head Office: 1083 Tsuneishi Numakuma-cho Fukuyama-city, Hiroshima, CEO: Katsushige Kambara) announced that the consolidated financial settlement ending on December, 2008 (January – December) was 286,200,000,000 yen in sales figures (+24% compared to the last year) and 17,100,000,000 yen in current profits (+20 % compared to the last year), mainly because of increases in manufacturing in the ship building division. The financial settlement of TSUNEISHI Holdings Corporation alone was 224,500,000,000 yen in sales figures (+12% compared to the previous year), and 8,200,000,000 yen in current profits (-30% compared to the previous year).

Shipbuilding Division

The consolidated shipbuilding divisions of overseas affiliates, including TSUNEISHI HEAVY INDUSTRIES (CEBU), Inc., (hereinafter called THI) in Philippines and Tsuneishi Group (Zhoushan) Shipbuilding Inc. in China (hereinafter called TZS) built 48 ships in the last year, reaching the largest number in the past. The sales figure in 2008 reached 191,900,000,000 yen (+13% compared to the last year). The result of received orders was 65 ships mainly in the first 6 months and the currently ordered volume reached its highest number, 283 ships (about 1,259,200,000,000 yen) as of the end of December, 2008.

＜Future Challenges＞

In the coming year, we plan to invest about 24,800,000,000 yen in facilities both in and outside Japan. In Japan, an assembly facility at the Tadotsu factory and painting facility at the Tsuneishi factory will be built to improve production efficiency and capacity. Additionally, overseas factories will be also intensified. For example, expansion is planned for a shipbuilding dock in TZS (to be finished next January), and a second THI factory and painting factory will be built. As a result, infrastructure allowing construction of 80 ships per year at 4 factories, 4 docks and 5 building berths inside and outside Japan will be readied.

Marine Transportation Division

Affected by the increase in the crude oil price, the marine transportation division’s sales figure was 56,400,000,000 yen (-12% compared to the last year). In 2008, we streamlined the shipping route of the regular shipping service, and purchased 3 bulk carriers for irregular shipping service (in total, we currently have 25 ships).
In addition, Kambara Kisen Fukuyama Logistics Center invested to the storage facilities including introducing an automated sorting machine to improve efficiency of assorting work, and expanding movable racks to increase storage capacity. As a result, we’ll be better able to respond promptly and flexibly to various customers needs.

＜Challenges in Future＞

Two years ago, charter fee and fuel prices were increasing, but at the end of last year, it dropped and the costs have been decreasing. But the global economy is in depression and marine shipping movement is also slowing down. Therefore we’re planning to improve our profitability by streamlining the shipping route. In addition to that, to stabilize short and long term profitability, we’ll promote expansion of regular shipping between Japan and China and South East Asian regions by cooperating with other companies, to achieve a seamless international transportation system including storage and ground transportation between Asian countries and Japan, and strengthen our management to keep stable profitability.