Annual Report 2010(PDF/2905)

initial estimate at the beginning of the fiscal year,
and a 7.50 yen appreciation from the previous year.
As for the coastal shipping sector, in the midst
of economic recession following 2009, exports
started to make a partial recovery from September
despite some weakness, inventory adjustment in the
automobile and electronics industries advanced,
and production cuts eased. Accordingly, the
transport of steel products and electric powerrelated
transport remained strong.
Within this business environment, in the
consolidated fiscal year under review, the Company
posted consolidated revenues of 95,106 million yen
(down 28.4% from the previous year), operating
income of 4,796 million yen (down 63.6%), and
ordinary income of 4,053 million yen (down
67.6%). Net income was 1,215 million yen (down
81.8%) as a result of recording an extraordinary loss
of 2,937 million yen due to cancellations of charter
contracts. These cancellations were attributable to
the early return of vessels, implemented as a way to
strengthen our fleet’s competitiveness.
■ Forecast for the Next Fiscal Year
In the next fiscal year, the world economy is
anticipated to continue recovering gradually, and
the overseas shipping market is expected to remain
firm, reflecting strong transportation demand for
iron ore, coal, and other materials in emerging
countries including China and India. However,
concerns remain about appreciation of the yen,
which is the variable factor for earnings results in
the overseas shipping service, and about a further
rise in fuel oil prices. Moreover, there is concern
that the shipping market will deteriorate as a result
of loosening supply and demand for vessels, due to
the large number of completions of new vessels.
These concerns make prospects unpredictable.
In this business environment, for the next
consolidated fiscal year, we expect 110,000 million
yen ✽ in consolidated revenue for the whole year,
operating income of 7,000 million yen ✽ , ordinary
income of 6,000 million yen ✽ , and net income of
3,500 million yen ✽ . The above projections assume an
exchange rate of 90 yen to the U.S. dollar and an internal
bunker C fuel oil price of 540 U.S. dollars per ton.
✽ The effect from the merger with the Nippon Steel Shipping Co., Ltd. is
excluded from the amount.
Trends in Time Charter Rates (Charter period: one year)
Capesize Bulk Carriers
Panamax Bulk Carriers
Handy Bulk Carriers
US$/day FY2009 FY2010
180,000
150,000
120,000
90,000
60,000
30,000
US$/day FY2009 FY2010
90,000
75,000
60,000
45,000
30,000
15,000
US$/day FY2009 FY2010
45,000
40,000
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
0
0
(Month)
4 5 6
7
8 9 10 11 12 1 2 3
(Month) 4 5 6 7 8 9 10 11 12 1 2 3
(Month) 4 5 6 7
8 9 10 11 12 1 2 3
Shinwa Kaiun Group Annual Report 2010 12