Nippon Express has cut its profit forecasts for the year ending March 31, 2006, due to slowbusiness and higher costs, and now expects a drop in both operating and net profits for the current
year.The Japanese freight forwarding group said it expected operating profit of 41.5 billion yen(€293.7 million) and net profits of 16 billion yen on revenues of 1.78 trillion yen. In comparison,for 2004-05, Nippon Express made an operating profit of 43 billion yen and a net profit of 32.2billion yen on turnover of 1.75 trillion yen.
Nippon Express said the decline was due to slow business, particularly in domestic road freight,higher operating costs including soaring fuel costs, and the impact of bad winterweather.
