Kintetsu World Express, Japan's second-largest international forwarder, reported net profit surged 292.4 percent in the April-June period from a year earlier to $13.69 million.
The Tokyo-based company's group operating revenue rose 39.9 percent in the first quarter of fiscal 2010 from a year earlier to $739.38 million. Its group operating profit soared 211.5 percent in the April-June quarter from a year earlier to $26.35 million.
KWE posted significant growth in its air and sea cargo services in the April-June quarter, while it continued rigorous cost-cutting efforts.
Looking back on the global economic situation during the April-June period, KWE said in its earnings release, “An economic recovery continued in emerging countries, especially those in Asia, while a moderate economic recovery was seen in developed countries. But new destabilizing factors became obvious, such as fluctuations in the financial markets triggered by the European debt crisis."
On the Japanese economic situation during the same period, KWE said, "Exports to Asia grew and capital investment bottomed out. But unemployment remained stuck at high levels and an economic recovery was far from self-sustaining."
Operating revenue in the Americas increased 29 percent in the April-June quarter from a year earlier to $89.78 million, and operating profit in the Americas came to $5.05 million, compared with an operating loss of $465,000 a year earlier.
KWE revised upward its full year group revenue and profit forecasts, which were announced in May.
The company's current full-year projections are for $3.02 billion in group operating revenue, up 22.7 percent from fiscal 2009; $125.58 million in group operating profit, up 44.9 percent; $81.40 million in group net profit, up 53.1 percent.
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