Major Japanese international freight forwarder Kintetsu World Express Inc.’s profit plummeted 42.7 percent in the first quarter of fiscal 2013, which started on April 1, from a year earlier to ¥1.364 billion ($14.18 million) on a consolidated basis.
The Tokyo-based company’s group operating revenue edged up 0.7 percent in the April-June quarter year-on-year to ¥64.644 billion ($671.98 million). Its group operating profit tumbled 19.4 percent to ¥2.710 billion ($28.17 million).
Looking back on the April-June period, KWE said in an earnings release, “The U.S. economy started to show a gradual recovery, but uncertainties remained about the future of the global economy due to the prolonged financial issues in Europe and an economic slowdown in China.”
“The Japanese economy started to show signs of a recovery amid expectations for the government’s economic and monetary policies, but volatile factors remained, including wild fluctuations in foreign exchange rates and stock prices,” KWE said.
The company further noted that demand for air transportation did not recover. Its own volume of air freight remained low, “but the volume of sea freight showed steady growth as a result of the whole KWE group’s efforts to promote sales,” the company said.
Operating revenue in the Americas, which include the United States, Canada and Latin America, totaled ¥8.853 billion ($92.03 million) in the first quarter of fiscal 2013, up 12.6 percent year-on-year. Operating profit in the Americas amounted to ¥348 million ($3.62 million), down 20.2 percent.
KWE left unchanged its group revenue and profit forecasts for fiscal 2013, which were announced on May 9: ¥270.0 billion ($2.81 billion) in operating revenue, up 8.9 percent from fiscal 2012; ¥14.5 billion ($150.73 million) in operating profit, up 9.1 percent from fiscal 2012; ¥9.2 billion yen ($95.63 million) in net profit, up 0.7 percent from fiscal 2012.