Nippon Express Half-Year Profit Up 13.3 Percent

Nippon Express Half-Year Profit Up 13.3 Percent

Nippon Express Co., Japan’s largest international freight forwarder, said that its net profit rose 13.3 percent in the first half of fiscal 2012, which started on April 1, from a year earlier to $141.44 million on a consolidated basis.

The Tokyo-based company’s group revenue edged down 0.4 percent in the April-September period from the same six-month period last year to $9.98 billion. Its group operating profit grew 13.0 percent to $196.79 million.

Nippon Express posted the relatively big rise in net profit due largely to a sharply higher extraordinary profit from the sale of fixed assets. The company made a profit of $39.99 million from the sale of fixed assets in the April-September period, compared with a profit of $27.71 million on similar sales a year earlier.

Nippon Express boasts one of the world’s largest global logistics networks.

Of the $9.98 billion group revenue in the April-September period, $326.06 million came from group companies in the Americas, up 21.6 percent from a year earlier. Of the $196.79 million group operating profit, $12.23 million came from group companies in the Americas.

Looking back on the first half of the current fiscal year, Nippon Express said in an earnings release, “The Japanese economy showed growing signs of slowing due to weaker overseas economies and a strong yen.”

“The Japanese logistics industry saw demand for domestic cargo traffic rise slightly year-on-year but remain at low levels. The industry also saw demand for international cargo traffic weaken significantly due to the European debt crisis and a slowdown in emerging-market economies, especially in Asia,” the company said.

Citing growing uncertainty over demand for cargo traffic, especially in Europe and Asia, including China, amid the slowing global economy and the continued strength of the yen, Nippon Express revised downward its initial group revenue and profit forecasts for the whole of fiscal 2012, which were announced in May.

The company’s new full-year projections are: $20.13 billion in group revenue, down 1.1 percent from fiscal 2011; $412.50 million in group operating profit, down 12.0 percent from fiscal 2011; $250.00 million in group net profit, down 25.8 percent from fiscal 2011.