Nippon Express’ half-year net profit sinks

Nippon Express’ half-year net profit sinks

Nippon Express Co., Japan’s largest international freight forwarder, saw its group net profit decline in the fiscal first half on the back of sluggish revenue growth and extraordinary charges.

The Tokyo-based company’s net profit fell 5.3 percent to 15.2 billion yen ($124 million) on a consolidated basis in the first half of fiscal 2015, which started in April, on a year-over-year basis.

Nippon Express’ overall revenue rose 3.7 percent in the April-September period from a year earlier to 953 billion yen. The revenue increase was owed to strong revenue growth internationally, which was helped by the yen’s weakening against the U.S. dollar.

By region, Nippon Express posted the biggest revenue growth in the Americas. Revenue in the region surged 29 percent to 48.2 billion yen. Operating profit in the region jumped a whopping 57 percent to 2.73 billion yen.

Revenue in Europe was up 3.7 percent at 41 billion yen. Revenue in East Asia outside of Japan soared 19.5 percent to 57.4 billion yen. Revenue in South Asia and Oceania swelled 26.1 percent to 36.7 billion yen.

Extraordinary losses totaling 5.02 billion yen also contributed to Nippon Express’ net profit decline in the first half of fiscal 2015. Of the extraordinary losses, 4.55 billion yen came from the disposal of fixed assets.

Contact Hisane Masaki at yiu45535@nifty.com.