Major Japanese international freight forwarder Kintetsu World Express, Inc. (KWE) said that its group net profit rose 21.1 percent in fiscal 2011, which ended on March 31, from the previous fiscal year to $119.31 million, the biggest amount on record.
Tokyo-based KWE’s group operating revenue edged down 1.2 percent in fiscal 2011 from fiscal 2010 to $3.31 billion. Its group operating profit increased 16.2 percent to $172.80 million.
KWE said that although its mainstay air cargo operations were sluggish, it vigorously pushed ahead with cost-cutting efforts, such as abolishing or merging some business offices, resulting in the record net profit.
Operating revenue in the Americas, which include the United States, Canada and Latin America, inched down 0.8 percent in fiscal 2011 from a year earlier to $407.34 million. Operating profit in the Americas fell 8.6 percent to $26.59 million.
Nippon Express Co., Yusen Logistics Co., Ltd. and KWE are Japan’s three largest international freight forwarders.
Looking back on the last fiscal year, KWE said in an earnings release, “The global economy was generally lackluster because of growing concerns about a recession amid the widening debt crisis in Europe and signs that growth in such emerging economies as China and India was also slowing.”
“Japan’s economic outlook grew increasingly uncertain for various reasons, including the effects of the Great East Japan Earthquake and heavy floods in Thailand, a slump in overseas demand and the prolonged appreciation of the yen. But the Japanese economy began to recover gradually in the second half of the last fiscal year,” KWE said.
KWE said that its air cargo transportation volume fell in the last fiscal year as a result of the Great East Japan Earthquake and a decline in global demand for such products as flat-panel televisions and personal computers, although its sea cargo services grew moderately.
KWE also announced its group revenue and profit forecasts for fiscal 2012: $3.75 billion in group operating revenue, up 13.5 percent from fiscal 2011; $187.50 million in group operating profit, up 8.5 percent from fiscal 2011; $118.75 million in group net profit, down 0.5 percent from fiscal 2011.
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