Despite air slump, Kintetsu World Express beats odds with record profit
2012 05 15
- Details
AIR CARGO dependent forwarding giant Kintetsu World Express (KWE) has posted a record 2011 net profit increase of 21.1 per cent to US$119.31 million, drawn on revenues of $3.31 billion, down 1.2 per cent.
Air cargo volume, on which KWE relies, fell because of last year's March earthquake and tsunami as well as a decline in global demand for such products as flat-panel televisions and personal computers, although its sea freight services grew moderately.
KWE said air freight operations were sluggish, but it engaged in severe cost-cutting, such as closing or merging offices. Operating profit increased 16.2 per cent to $172.80 million.
Fiscal 2011 Americas revenue fell 0.8 per cent in fiscal 2011 from a year earlier to $407.34 million. Operating profit in the Americas fell 8.6 per cent to $26.59 million.
Tokyo-based KWE ranks behind Nippon Express Co and Yusen Logistics, Japan's big three international freight forwarders.
"The global economy was lacklustre because of growing concerns about a recession amid the widening debt crisis in Europe and signs that growth in such emerging economies as China and India was slowing," said the KWE statement accompanying the financial results.
"Japan's economic outlook grew uncertain, including the effects of the earthquake and floods in Thailand, a slump in overseas demand and the prolonged appreciation of the yen. But the Japanese economy began to recover gradually in the second half of the last fiscal year," the statement said.
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