Hisane Masaki | Aug 10, 2011 8:49AM EDT
Kintetsu World Express, Japan’s second-largest international forwarder, said its net profit doubled in the first quarter of fiscal 2011, which ended June 30, from a year to $30.6 million on a consolidated basis.
Tokyo-based KWE’s group operating revenue rose 6.8 percent in the April-June quarter from the same period last year to $870.8 million, as demand for both air and sea cargo services grew. Its group operating profit swelled 49.2 percent to $43.4 million.
Operating revenue in the Americas, which include the United States, Canada and Latin America, increased 9 percent in the April-June period from a year earlier to $107.9 million. But operating profit in the Americas fell 9.4 percent to $5.04 million.
“A moderate economic recovery continued in the United States and Europe, while uncertainty grew in Asia as the Chinese economy began to show signs of slowing due to tight monetary policy,” KWE said.
Although the company said it undertook cost-cutting efforts and promoted sales activities, it didn’t explain why its group operating and net profits rose more than its group operating revenue in the quarter.
KWE left unchanged its group revenue and profit forecasts for the whole of fiscal 2011, which it made May 11.
The company’s full-year projections are: $3.7 billion in group operating revenue, up 7.2 percent from fiscal 2010; $166.7 million in group operating profit, up 9.3 percent from fiscal 2010; and $102.6 million in group net profit, up 1.5 percent from fiscal 2010.
Contact Hisane Masaki at yiu45535@nifty.com.
