NYK Consolidation Boosts Yusen Profit 125 Percent

NYK Consolidation Boosts Yusen Profit 125 Percent

Yusen Logistics boosted net profit 125 percent year-over-year to $34.9 million in the first nine months of fiscal 2010 with the absorption of NYK Logistics.

The Tokyo-based company is the logistics arm of NYK Line, Japan's largest shipping firm. Yusen Air & Sea Service absorbed NYK Logistics, another logistics subsidiary of NYK Line, and changed its name to Yusen Logistics on Oct.1.

The company's group operating revenue jumped 40 percent in the April-December period from the same nine-month period of the previous fiscal year to $1.48 billion, as demand for air and sea cargo services remained firm, especially abroad.

The company's operating profit soared 167.4 percent in the April-December period from a year earlier to $48.87 million.

In the Americas, Yusen Logistics posted a group operating revenue of $124.07 million in the April-December period, up 33.3 percent from a year earlier.

The company posted a group operating profit of $7.06 million in the Americas in the April-December period, compared with a group operating loss of $3.21 million a year earlier.

"The pace of global economic recovery slowed down," Yusen Logistics said in its earnings release. "In the U.S., a recovery in the jobs and housing markets was delayed. In Europe, economic growth remained sluggish due to fiscal austerity measures triggered by the financial crisis."

"But in Asia, the Chinese, Indian and other economies grew steadily, bolstered by strong domestic demand," the company said.

"Meanwhile, the pace of Japanese economic recovery slowed down due to the gradual termination of government stimulus measures, the stubbornly high value of the yen and a slowdown in the growth of exports," the company said.

Yusen Logistics revised downward its net profit forecast for the whole of fiscal 2010 to $42.7 million, up 126.6 percent from fiscal 2009.

-- Contact Hisane Masaki at yiu45535@nifty.com.