Japanese market leader Yamato makes big nine-month net loss

The leading Japanese parcels transport group, Yamato Holdings, has made a heavy nine-month netloss due to a one-off asset revaluation but improved its operating profits in its core parcels

For the nine months ending December 31, 2005, the company’s net sales rose 6.7 per cent to 880.3billion yen (6.2 billion euros), and operating profits rose strongly by 32.2 per cent to 70.9billion yen (498 million euros). Net results, however, slumped to a loss of 23.5 billion yencompared to a net profit of 34.3 billion yen over the first nine months of 2004/05. This previouslyforecast drop was due to a major land revaluation at the time of the restructuring into a holdingcompany last autumn.

Yamato Transport, the main parcel delivery business, increased its operating revenues over thefirst nine months of the April 2005-March 2006 fiscal year by 5.7 per cent to 710.3 billion yen.Its nine-month operating profits rose to 54.3 billion yen from 43.2 billion yen over the sameperiod in the previous fiscal year.

Yamato Transport’s parcel volumes were up 6.2 per cent to 888 million items but revenues grewmore slowly by four per cent to 580.9 billion yen due to declining yields. The mail businesscontinued to grow with a 21.4 per cent increase to 1.26 billion pieces and a 15.7 per cent rise torevenues of 88.5 billion yen.

The group’s other activities, including its expanding logistics business, grew 11.3 per cent to170 billion yen.

Yamato Transport claims a 36.8 per cent share of the Japanese domestic parcel market ahead ofSagawa Express, Nippon Express, Fukuyama and Seino.