Major Japanese international freight forwarder Yusen Logistics said its group net profit plunged 55.7 percent in fiscal 2012, which ended on March 31, from a year earlier to 1.119 billion yen ($11.42 million) despite sound revenue growth.
The company saw its group operating revenue rise 9.7 percent in fiscal 2012 from a year earlier to 339.049 billion yen ($3.46 billion). The company’s group operating profit tumbled 73.6 percent to 1.659 billion yen ($16.93 million).
Yusen Logistics said in an earnings release that its group operating profit fell in the last fiscal year because of a drop in its air freight volume and a decline in the profitability of its sea cargo operations.
In the Americas, Yusen Logistics saw its group operating revenue jump 10.3 percent year-over-year in fiscal 2012 to 77.269 billion yen ($788.46 million). It posted a group operating loss of 6 million yen ($61,000) in the region in fiscal 2012, but the loss significantly narrowed from 577 million yen ($5.89 million) in fiscal 2011.
The Tokyo-based company is the logistics arm of Nippon Yusen Kabushiki Kaisha (NYK Line), Japan’s largest shipping firm in terms of sales.
Yusen Logistics also announced its group revenue and profit forecasts for fiscal 2013: 400 billion yen ($4.08 billion) in operating revenue, up 18.0 percent from fiscal 2012; 4.5 billion yen ($45.92 million) in operating profit, up 171.3 percent from fiscal 2012; and 1.5 billion yen ($15.31 million) in net profit, up 34.1 percent from fiscal 2012.
The company said in the earnings release, “Although the U.S. economy is recovering, the European economy remains mired in a prolonged slump, and growth in Asian economies is also slowing down.”
“Under such circumstances, we will strive to boost sales in response to the needs of our customers while pushing ahead with cost-cutting efforts,” the company said.