[090413.EN.SEA] Cost-cutting And Innovation Way Back To Profit: MOL President Muto

JAPAN's Mitsui OSK Lines' (MOL) focus for the coming year will be on restoring profitability through cost cutting and innovative management, said company president Koichi Muto.

"To ensure that we return the MOL Group to the black, it is more critical than ever that we avoid committing major mistakes. Every member of the MOL Group will strive to rigorously enforce safe operations and compliance as an ongoing top priority," he said.

"This will encompass the voluntary return of certain salary amounts by senior management level employees, and cuts in executive remuneration," he said in his annual address to the company on the occasion of its 129th anniversary.

"We need to improve efficiency of vessels' deployment by minimising ballast voyages through the optimal combination of various voyages and cargo. Our top priorities for ensuring a return to profitability are to make determined sales effort along with demonstrating creativity and ingenuity," Mr Muto said.

"We will overhaul operations that we have taken for granted. We will also measure and re-evaluate all costs through an item-by-item inspection," he said.

"Cost cutting is a task that we can achieve through our own efforts, regardless of the external environment. We have so far achieved a measure of success through various ways, such as the extended use of slow steaming. In fiscal 2013, we will reduce costs on an entirely different stage than before." Mr Muto said.

"We will execute bold reforms of unprofitable operations and non-core assets, leaving no stone unturned. Measures will extend to withdrawing from businesses and disposing of assets," he said.

"It is imperative to demonstrate creativity and ingenuity. We need to hone our sensitivity to understand disparities among sea areas, and short-term swings in the shipping market," he said.

"We cannot afford to neglect the execution of growth strategies. To this end, the MOL Group is actively preparing for future growth in the fields of LNG carriers, offshore business, and containerships," said Mr Muto, the only mention he made of box shipping in his entire address.

Source : HKSG, 04.04.13.