Major Japanese international freight forwarder Kintetsu World Express Inc. said on May 9 that its net profit declined 4.3 percent in fiscal 2012, which ended on March 31, from a year earlier to 9.134 billion yen ($92.26 million) on a consolidated basis.
The Tokyo-based company’s group operating revenue fell 6.2 percent in fiscal 2012 year-on-year to 247.977 billion yen ($2.50 billion). Its group operating profit dropped 3.8 percent to 13.295 billion yen ($134.29 million).
Looking back on the last fiscal year, KWE said in an earnings release, “The global economy further decelerated due to a relapse of credit insecurity in Europe and concerns over the U.S. financial issues, and the growth rates in China and India also slowed down.”
“In Japan, the economy had remained stagnant as a result of a prolonged strong yen and a slowdown in the global economy, but it started showing signs of recovery after the change of government, as the expectations for correction of a strong yen and monetary policy contributed to improvement of market confidence,” KWE said.
“In the international freight market, the primary focus of the KWE group, the overall activity level remained low due to weak international transportation demand,” the company said.
Under such circumstances, KWE’s air cargo volume fell, although its sea cargo volume increased.
Operating revenue in the Americas, which include the United States, Canada and Latin America, totaled 32.206 billion yen ($325.31 million) in fiscal 2012, down 1.2 percent year-on-year. Operating profit in the Americas amounted to 2.042 billion yen ($20.63 million), down 4.0 percent.
Nippon Express Co., Yusen Logistics Co. and KWE are Japan’s three largest international freight forwarders.
KWE also announced its group revenue and profit forecasts for fiscal 2013: 270.000 billion yen ($2.73 billion) in operating revenue, up 8.9 percent from fiscal 2012; 14.500 billion yen ($146.46 million) in operating profit, up 9.1 percent from fiscal 2012; 9.200 billion yen ($92.93 million) in net profit, up 0.7 percent from fiscal 2012.