Yusen Logistics said on Friday that it posted a net loss of 2.51 billion yen ($22.6 million) on a consolidated basis in fiscal 2016, as revenue declined sharply and extraordinary losses more than doubled despite higher volumes.
The Japanese international freight forwarder had predicted a group net profit of 200 million yen for the last fiscal year, which ended on March 31. The fiscal 2016 loss follows a profit of 2.69 billion yen in fiscal 2015.
Revenue tumbled 6.5 percent year-over-year to 439 billion year and extraordinary losses came to 2.53 billion yen. The extraordinary losses were due to the writing down of fixed assets by 1.44 billion yen, and 936 million yen for employee retirement benefits.
The strengthening of the yen against the US dollar caused the revenue decline even as air and sea volumes rose, Yusen said.
Yusen’s revenue in the Americas fell 18.4 percent year-over-year to 95.9 billion yen in fiscal 2016.
Revenue in Japan edged down 0.6 percent to 82.8 billion yen, while revenue in Europe was down 11.8 percent at 93.9 billion yen. Revenue in South Asia and Oceania was down 3.1 percent at 90.6 billion yen, but revenue in East Asia outside Japan rose 7 percent to 91.4 billion yen.
To avoid further losses, Yusen Logistics unveiled a medium- and long-term management plan for further growth called 'Transform 2025' on Friday that calls for, among other things, boosting its group revenue to 880 billion yen in fiscal 2025, compared with 439 billion yen in fiscal 2016.
The company expects to improve its performance in fiscal 2017, projecting a revenue increase of 8.6 percent to 477 billion yen and profit of 1.4 billion yen.
Yusen Logistics is logistics arm of NYK Line, Japan’s largest shipping firm by sales, and is one of the nation’s three largest international freight forwarders. The company in March had to suspend its customs operations on the order of the Japanese government because of false declarations.