Major Japanese freight forwarder Yusen Logistics swung into the red in the first quarter of the current fiscal year as higher operating costs offset solid revenue growth driven by brisk air and sea cargo movements.
Yusen Logistics posted a net loss of 767 million yen ($6.94 million) on a consolidated basis in the April to June quarter, compared with a net profit of 355 million yen a year earlier, as the Tokyo-based company’s group revenue rose 4.9 percent to 114 billion yen.
Yusen Logistics, the logistics arm of NYK Line, said that the business environment surrounding its air freight forwarding business remains harsh due to “tighter space and higher procurement costs,” especially in East Asia outside Japan.
Yusen’s revenue rose in all regions except the Americas, and the company incurred operating losses in Japan, East Asia outside Japan, and the Americas.
In the Americas, the company suffered an operating loss of 580 million yen, partly due to rising labor costs amid an economic recovery in the United States. Revenue in the Americas declined 2.6 percent to 24.3 billion yen.
Yusen also posted operating losses of 553 million yen in Japan and 253 million yen in East Asia outside Japan in the April to June period. Revenue in Japan was up 2.5 percent at 20.9 billion yen, while that in East Asia outside Japan was up 11.7 percent at 23 billion yen.
Elsewhere in the world, revenue in Europe was up 7 percent at 25.9 billion yen as operating profit more than tripled to 213 million yen.
Revenue in South Asia and Oceania rose 6.6 percent to 23.6 billion yen as operating profit shrank 32.1 percent to 909 million yen.
Contact Tomoo Yatsuhashi at firstname.lastname@example.org.