The reduction, which began in April, is scheduled to last for six months to “clarify our management stance towards recovery of our business performance,” the company said.
Kawasaki Kisen Kaisha Ltd. (“K” Line) announced Tuesday it has reduced its executive compensation by 10% compared to fiscal year 2018 levels for six months to “clarify our management stance towards recovery of our business performance during 2019 fiscal year.”
The pay cut took effect in April, “K” Line said.
The Japanese company reported last month an operating loss of 24.7 billion yen in the fiscal year ending March 31, compared to an operating profit of 7.2 billion yen the previous year. It also reported an ordinary loss of 48.9 billion yen and a loss attributable to owners of the parent of 111 billion yen.
“‘K’ Line and our group companies will continue to strive as one to improve profit and loss under the new management, being strongly determined to make every possible effort to again return to the black in 2019,” the company said in a statement.
The company is projecting a profitable current fiscal year of 6 billion yen in operating income, 5 billion yen in ordinary income and 11 billion yen in profit attributable to owners of the profit. Its financial highlights for the first quarter of its fiscal year 2019 are scheduled to be announced July 31.
“K” Line, along with Nippon Yusen Kaisha and Mitsui O.S.K. Lines, jointly own the container carrier Ocean Network Express, which had a loss of $586 million in its first fiscal year ending March 31 with a revenue of $10.88 billion.