THE N.Y.K.

Evening Post, Issue 12, 14 July 1936, Page 12

THE N.Y.K.

JAPANESE SHIPPING YEAR

Mr. Noboru Ohtani, president of the Nippon Yusen Kaisha Shipping Company, speaking at Tokio, May 29, in support of the directors' report, said in part that the net profit for the halfyear ending March 31, 1936. was, in round figures, 3,025,000^611, after meeting the usual provisions. Adding to net profit the amount brought forward from the previous term, viz., 2,482,000 yen, a total of 5,507,000 yen was obtained. Of this amount the directors proposed to allot 200,000 yen as legal reserve, 1,000,000 yen special reserve for contingencies, and 1.606,000 yen as dividend to the shareholders (corresponding to 5 per cent, per annum), thereby carrying forward the net balance of 2,701,000 yen to next account.

The president was pleased to say that earnings during the term under review were fairly maintained on the same basis as in the prevoius term. Freight earnings showed a considerable increase, due to a further advance in both exports and imports. He regretted to observe in the passenger earnings, however, a noticeable decline, owing to the decrease in the number of travellers, and especially by tourists, mainly because of the unsettled situation of world affairs. Disbursements were on the increase, due to additional cargo expenses consequent upon increase in cargo taken, higher prices of fuel and other materials. But rigid economy continued to be observed The directors were glad to be able to report to the shareholders the net profit stated above. . The president observed that, although the operations of the N.Y.K. continued to be favoured by such local conditions as exchange, etc., thereby enabling the company to make adequate earnings, the world's shipping, as a whole, was still in a state of depression. It was considered, however, that the worst was over. Rock bottom was reached in 1932, since when the situation had been gradually but very slowly improving, though reasonable recovery was still remote. Under such conditions, and in view of the unsettled situation still threatening, the president stated the directors were determined not t< relax their efforts in making the financial foundation of the company stronger than ever, thus keeping it in a position to meet any emergency, and to enable it successfully to fulfil its important function as the national medium of Japan's international trade and communications under the always changing conditions.