Yusen Annual Profit Tumbles

Yusen Air & Sea Service, the core logistics unit of Nippon Yusen Kabushiki Kaisha (NYK Line), Japan's biggest shipping firm, reported a big drop in group profit for fiscal 2008, which ended on March 31.

YAS attributed the results to the sharp deterioration in the international cargo market that started last autumn amid the deep global economic downturn and an extraordinary loss stemming from a $17.9 million payment of a fine ordered recently by the Japan Fair Trade Commission for its alleged role in a cartel to raise international air cargo charges.

The YAS group's revenue declined 10.7 percent in fiscal 2008 from a year earlier to $1.74 billion. Operating profit tumbled 55.2 percent to $47.5 million, ordinary profit -- which is similar to pre-tax profit under the U.S. accounting standards -- plunged 55.2 percent to $55.6 million, and net profit plummeted 85.1 percent to $11.2 million.

By geographical area, North America brought $173.4 million in revenue, down 6 percent, and $5.5 million in operating profit, down 46.9 percent, to the YAS group. Geographic areas are determined according to the linkage and geographical proximity of each business, YAS said.

For fiscal 2009, YAS said it projects $1.25 billion in group revenue, down 28.3 percent from fiscal 2008. The company also projects big drops in both operating and ordinary profits.

But the company expects a sharp rise in net profit because the one-off factor of the anti-monopoly fine-related extraordinary loss, which made a big dent in its fiscal 2008 net profit, will disappear.

The company's fiscal 2009 profit projections are: $30.1 million in operating profit, down 36.6 percent; $35.3 million in ordinary profit, down 36.5 percent; $19.7 million in net profit, up 75.4 percent.

Contact Hisane Masaki at yiu45535@nifty.com .