Yusen Logistics narrows loss

Yusen Logistics narrows loss

Major Japanese international freight forwarder Yusen Logistics Co. said that it incurred a group net loss of ¥518 million ($5.03 million) in the first quarter of fiscal 2014, which started on April 1.

But the group net loss narrowed from ¥592 million in the same three-month period last year, Yusen Logistics said on July 31.

Yusen Logistics said that it booked an extraordinary loss of ¥1.478 billion in the April-June quarter in connection with an antitrust class-action lawsuit in the United States.

The Tokyo-based company saw its group operating revenue rise 4.4 percent year-on-year in the April-June quarter to ¥103.658 billion. It posted a group operating profit of ¥1.295 billion, compared with a group operating loss of ¥140 million a year earlier.

Yusen Logistics is the logistics arm of Nippon Yusen Kabushiki Kaisha (NYK Line), Japan’s largest shipping firm by sales. Yusen Logistics is one of the nation’s three largest international freight forwarders, along with Nippon Express Co. and Kintetsu World Express Inc. (KWE).

Looking back on the April-June quarter, Yusen Logistics said in an earnings release, “The Japanese economy was on a recovery trend despite concerns about the negative impact of the sales tax hike on April 1. In the U.S., consumer spending recovered amid an improvement in the employment situation.”

“But a recovery in the European economy was slow as a whole. Economic growth in other Asian countries also slowed down amid political uncertainty in Thailand and Vietnam,” the company said. “Under such circumstances, our sea and air cargo volumes both rose in the reporting period, compared with the same period last year.”

In the Americas, Yusen Logistics saw its group operating revenue rise 3.5 percent year-on-year in the first quarter of fiscal 2014 to ¥23.521 billion. But its group operating loss in the region more than doubled to ¥119 million from ¥57 million a year earlier.

Citing the antitrust lawsuit-related extraordinary loss of ¥1.478 billion yen booked in the April-June quarter, Yusen Logistics revised downward its group net profit forecast for fiscal 2014, which was announced on April 30.

The company’s projections for the current fiscal year are: ¥430.000 billion in operating revenue, up 5.9 percent from fiscal 2013; ¥6.500 billion in operating profit, up 43.7 percent from fiscal 2013; ¥1.140 billion in net profit, down 13.3 percent from fiscal 2013.

Contact Hisane Masaki at yiu45535@nifty.com.