M&A landscape: nothing chunky to buy, lots to break up
Inspired by the bear, threatened by the bull or vice versa?
Nippon Express container at the China-Thailand pilot stage. Credit Nippon Express.
With regard to its most recent performance, NIPPON EXPRESS said this week:
– The addition of cargo-partner (CP) increased group revenue; however, the forwarding business saw a decline in gross profit per unit due to the easing of supply and demand, and the effect on profit was smaller in relation to the increase in revenue
– Domestic logistics remained sluggish as overall cargo movement failed to recover despite an increase in volume among certain industries, including the automobile industry
– We recorded 6.5 billion yen in impairment loss during the current fiscal year associated with the integration of the special combined delivery business (impacting operating income and all other profit measures)
– Although logistics demand is like to be sluggish generally, we have not changed our forecasts, announced on February 14, that domestic and overseas logistics demand will recover beginning in the second half of the year, leaving revenues and profit at each stage below operating income unchanged
Its (rather convoluted) financial results can be found here.
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