Yusen Air & Sea Net Profit Tumbles 58.2 Percent

Yusen Air & Sea Net Profit Tumbles 58.2 Percent

Japanese freight forwarder Yusen Air & Sea Service said its net profit plunged 58.2 percent from a year earlier in the first nine months of fiscal 2009, which started in April, to $14.1 million.

The Tokyo-based company is the core logistics arm of Nippon Yusen Kabushiki Kaisha (NYK Line), Japan's largest shipping firm by sales.

YAS' group operating revenue totaled $965.2 million in the April-December period, down 36.5 percent from the same nine-month period of 2008. The company's group operating profit came to $16.7 million, down 67.5 percent from a year earlier.

Revenue from North America fell 42.2 percent to $84.8 million, and the company suffered an operating loss there of $2.9 million compared with an operating profit of $4.5 million a year earlier.

"The world economy has emerged out of its deep slump seen in early 2009. Helped by governments' economic stimulus measures, the economies of Asian countries, led by China, are on a recovery path and those of the U.S. and European countries have hit bottom," YAS said in its earnings release.

"Meanwhile, the Japanese economy, helped by increased exports and public investments, is on a moderate recovery path, but consumer spending and corporate capital investment remain sluggish," the company said.

YAS revised upward its group operating revenue forecast for the whole of fiscal 2009 to $1.38 billion. But the company revised downward its net profit forecast for the current fiscal year to $18.3 million, up 52.4 percent from fiscal 2008.

The expected sharp rise in group net profit for the full year is related to a one-off charge in 2008 for a $19.2 million fine ordered by the Japan Fair Trade Commission.

Contact Hisane Masaki at yiu45535@nifty.com.