Business Structure Reform and Profitability Improvement in the Logistics Business

「On-site operations continued to improve earnings due to the launch of new work for customers in Japan and overseas and the withdrawal from loss-making operations overseas. As a result, total logistics revenue was ¥295,256 million, down 0.1% from the previous fiscal year, while segment profit (operating profit) was ¥9,826 million, up 1.5%.」

「On-site operations benefited from the launch of new work for customers in Japan and overseas and the withdrawal from loss-making operations overseas. As a result, total logistics revenue was ¥146,635 million, up 0.1% year on year, while segment profit (operating profit) was ¥4,653 million, up 15.4%.」

「In the latest revision of the medium-term management plan, we narrowed our target industries to steel, chemicals, and electrical and electronic products, where we can capitalize on our strengths.」

「In port and international logistics, domestic project cargo and warehouse storage operations increased, but marine container handling remained in the process of recovering and was lower than the previous year. In general 3PL, although new operations were launched, transport operations for automotive components, consumer goods, and other products within China remained weak due to sluggish domestic demand. On-site operations benefited from progress on price revisions for domestic customers, increased shipping and packing work, and new operations in the Middle East. As a result, total logistics revenue was ¥146,485 million, up 3.6% year on year, while segment profit (operating profit) was ¥4,031 million, down 7.9%.」

「As a result, total logistics revenue was ¥284,258 million, down 5.9% from the previous fiscal year, while segment profit (operating profit) was ¥8,057 million, down 18.4%.」

「As a result, total logistics revenue was ¥214,290 million, down 6.2% year on year, while segment profit (operating profit) was ¥7,158 million, down 14.5% year on year.」

「In port and international logistics, domestic marine container volumes and the associated yard and storage operations declined. Marine and air freight rates in Japan and overseas fell, while import and export handling remained weak. In general 3PL, although new 3PL work increased, transport operations for automotive components, consumer goods, and other products within China remained weak, and domestic handling of chemical products and consumer goods declined. On-site operations remained solid despite some additional costs in the Middle East, supported by progress on price revisions for domestic customers, increased on-site operations in South America, and the absence of costs for addressing equipment malfunctions in the Middle East incurred in the previous fiscal year. As a result, total logistics revenue was ¥141,333 million, down 6.4% year on year, while segment profit (operating profit) was ¥4,376 million, down 10.3%.」

「In port and international logistics, domestic marine container volumes and the associated yard and storage operations declined. Marine and air freight rates in Japan and overseas fell, while import and export handling remained weak. In general 3PL, transport operations for automotive components, consumer goods, and other products within China remained weak, and domestic handling of consumer goods and other products declined. Chemical product handling increased, however. On-site operations increased due to progress on price revisions for domestic customers and higher on-site activity in Japan and overseas. As a result, total logistics revenue was ¥70,146 million, down 5.7% year on year, while segment profit (operating profit) was ¥2,480 million, up 1.1%.」

「Under the new Medium-Term Management Plan 2026, in addition to our existing initiatives, we will expand our business in Japan and overseas by applying our expertise horizontally to cargo categories in which we have particular strengths within our existing businesses, including electrical and electronic components, automotive components, and chemical products, including hazardous materials. We will also promote digitalization and automation to improve operating efficiency and reduce costs, while enhancing data connectivity with customers and others to increase the added value and competitiveness of our services.」

「In the port and international logistics business, domestic marine container volumes and the associated yard and storage operations remained solid.」

「In the port and international business, domestic marine-container handling increased, along with related yard and storage operations. Although the Southeast Asian project completed in the previous fiscal year no longer contributed, export and import handling of marine cargo in Japan and overseas remained strong. In the general 3PL business, transportation and storage operations for automotive parts and consumer goods in China and Southeast Asia remained solid, although domestic handling volumes for consumer goods and other products declined. In on-site operations, domestic customer price revisions progressed, but work volumes declined, while advance costs related to equipment malfunctions overseas and equipment repair expenses increased. As a result, logistics revenue increased 8.6% year on year to ¥150.985 billion, while segment profit (operating profit) declined 20.4% to ¥4.882 billion.」

「As a result, logistics revenue totaled ¥74,414 million, up 7.2% year on year, while segment profit (operating profit) totaled ¥2,453 million, down 18.0% year on year.」

「Under the next medium-term plan, in addition to our existing initiatives, we will strengthen the foundation for high-value-added logistics services requiring specialized knowledge, such as medical and pharmaceutical products and hazardous materials.」

「In the port business, although revenue declined due to the application of the revenue recognition accounting standard and other factors, profit increased on higher domestic marine container volumes and related yard work, as well as increased export machinery packing and coastal cargo-handling work. In international logistics, although a large-scale plant transport project in Southeast Asia was delayed, imports and exports of marine and air cargo increased in Japan and overseas, and chemical product transportation in the Middle East performed well. In general transport and 3PL, automotive component transport and storage operations in China and Southeast Asia remained solid, but the business was affected by higher fuel prices, which had continued since the beginning of the year, and the lapse of tax and other relief measures implemented in China in the previous period. On-site operations exceeded the previous period overall, despite weak production and operating rates at some customers and higher labor and other costs.」

「In the port business, although the adoption of the revenue recognition accounting standard and other factors reduced revenue, profits increased as higher domestic handling of marine containers led to more ancillary yard operations and other work, while handling of exported steel products and imported raw materials also increased. In international logistics, export and import handling increased in Japan and overseas, while air-freight handling in Japan, Southeast Asia, and Hong Kong and chemical-product transportation in the Middle East remained strong. In the general transportation and 3PL businesses, handling volumes in warehouses and transportation in China did not increase as strongly as in Q1, but domestic transportation and storage of raw materials and products remained firm. In on-site operations, production and operating rates at some domestic and overseas customers showed signs of declining after the start of Q2, but overall activity did not fall below the previous period. As a result, logistics revenue increased 6.0% year on year to ¥139.075 billion, and segment profit (operating profit) increased 56.0% to ¥6.132 billion.」

「In the port business, although revenue declined due to the application of the revenue recognition accounting standard and other factors, increased marine container volumes, particularly exports, generated additional work such as packing and empty-container yard operations, resulting in higher profit. In international logistics, in addition to increased domestic import and export-related work and air cargo handling, automotive and electronic component logistics in Southeast Asia and Hong Kong and chemical product transportation in the Middle East recovered.」

「In the logistics business, we have sought to acquire new customers and deepen and expand existing business areas through logistics diagnostics, planning, and solution-based sales in Japan and overseas. In particular, under the medium-term management plan, we have worked to expand logistics services centered on 3PL, which supports customers’ supply chains and consumer-goods logistics in Japan and overseas, and believe that these efforts are steadily producing results.」

「In the port business, although container volumes increased following the acquisition of new routes, export volumes did not fully recover, and revenue declined due to lower volumes of conventional-vessel cargo handling, packing operations, and shipping-agency services. In international logistics, although overseas project-related transportation and emergency air-freight shipments increased, import and export volumes in Japan and overseas declined due to the COVID-19 pandemic, and chemical-product export operations in the Middle East had not recovered. In general logistics, warehousing and transportation operations in China continued to recover, but lower domestic office-relocation activity and reduced transportation of products and raw materials due to the pandemic resulted in lower revenue and profit. In on-site operations, domestic customers' production and operating rates improved slightly during the period but had not recovered compared with the same quarter of the previous year, resulting in lower revenue and profit. Revenue was ¥198.896 billion, down 7.8% year on year, while segment profit (operating profit) was ¥6.403 billion, down 24.4%.」

「In the port business, although container volumes increased following the acquisition of new routes and the Company won unloading work for biofuels, revenue declined due to the impact of lower export volumes and declines in storage, packing, ocean transportation, and shipping-agency operations. In international logistics, despite increased overseas project-related transportation, profit declined due to lower import and export volumes in Japan and overseas as a result of the COVID-19 pandemic, compounded by a substantial decline in chemical-product export operations in the Middle East. In the general transportation and 3PL businesses, despite cost reductions from improved domestic delivery efficiency and a recovery in warehousing and transportation operations in China, lower domestic office-relocation activity and reduced transportation of products and raw materials due to the COVID-19 pandemic resulted in lower revenue and profit. In on-site operations, major customers in Japan and overseas substantially reduced operating rates due to the pandemic, and the resulting sharp decline in production and shipment volumes led to lower revenue and profit. The logistics business as a whole also reported lower revenue and profit. Revenue was ¥131.184 billion, down 8.7% year on year, while segment profit (operating profit) was ¥3.930 billion, down 28.1%.」

「In the port business, although container volumes increased following the acquisition of new routes at Tokyo Port, revenue declined as lower export volumes reduced upstream operations such as packing and warehouse cargo handling, affecting international logistics as well. Increased large-scale equipment project transportation and emergency shipments in Southeast Asia compared with the previous fiscal year contributed to higher profit. In the general transportation and 3PL businesses, the end of equipment transportation for a large domestic environmental project, lower consumer-goods logistics mainly in metropolitan areas, and reduced transportation of products and parts in Japan and overseas due to the coronavirus impact resulted in lower revenue and profit. On-site operations also reported lower revenue and profit as major domestic and overseas customers substantially reduced operating rates due to the coronavirus impact, reducing production and shipment volumes. Revenue was ¥66.459 billion, down 7.6% year on year, while segment profit (operating profit) was ¥2.1 billion, down 23.0%.」

「In the port business, revenue declined due to lower container volumes handled by major shipping lines, particularly on China routes, lower onboard and coastal cargo-handling volumes, and declines in container transportation and machinery-packing operations. However, increased storage and cargo-handling operations at port-side warehouses, together with improved work efficiency and pricing, resulted in higher profit. In the 3PL business, although transportation of parts and materials declined with weaker domestic demand in China, increased handling of chemical products in Japan and Southeast Asia and increased consumer-goods transportation, together with improved transport efficiency and pricing, resulted in higher revenue and profit. The logistics business as a whole reported lower revenue but higher profit. Revenue was ¥283.932 billion, down 1.8% from the previous consolidated fiscal year, while segment profit (operating profit) was ¥10.849 billion, up 7.2%.」

「In the 3PL business, although automotive-parts delivery and consumer-goods logistics in China declined, increased domestic transportation of chemical products and consumer goods, improved delivery pricing, and increased handling of chemical products in Southeast Asia resulted in higher revenue and profit. In on-site operations, although upfront costs accompanied the launch of operations in the Middle East, increased domestic production of infrastructure-related equipment and materials and improved on-site work-unit pricing resulted in lower revenue but higher profit for the logistics business as a whole.」

「In the port business, export packing operations and container volumes handled by major shipping lines, particularly on China routes, declined, but storage and cargo-handling operations at port-side warehouses increased. In international logistics, handling volumes for large-scale project transportation in the previous fiscal year and international cargo in China declined. In the 3PL business, although automotive-parts and consumer-goods logistics in China decreased, increased domestic transportation of chemical products and consumer goods, together with continued improvements in transportation and delivery rates, generated synergies and resulted in higher revenue and profit. In on-site operations, although raw-material handling and transportation work declined due to typhoon impacts, higher on-site production of infrastructure-related equipment and materials, together with improved work-unit pricing, resulted in higher revenue and profit for the logistics business as a whole. Revenue was ¥143.734 billion, up 1.0% year on year, while segment profit (operating profit) was ¥5.463 billion, up 17.3%.」

「In the port business, container volumes handled by major shipping lines declined, but storage and cargo-handling operations at port-side warehouses increased. In international logistics, although there were delays in large-scale project transportation and a decrease in handling volumes compared with large projects in the previous fiscal year, the consolidation of an international air-freight company contributed to higher revenue. In the 3PL business, increased handling of consumer goods and chemical products, together with improved transportation and delivery rates, generated synergies and contributed to higher profitability. On-site operations were generally about the same as in the previous year, but the logistics business as a whole reported higher revenue and profit. Revenue was ¥71.912 billion, up 1.4% year on year, while segment profit (operating profit) was ¥2.729 billion, up 12.4%.」

「In the port business, strong container volumes handled by major shipping lines, including on new routes, led to higher revenue, with the increased volumes also generating more warehouse work in port areas. In international logistics, project transportation and automotive-parts logistics overseas remained firm, and handling volumes expanded as equipment export operations for overseas markets increased. In the 3PL business, store-delivery operations increased, as did handling volumes for consumer goods and chemical products. In on-site operations, increased work volumes in Southeast Asia and new on-site operations in the Middle East expanded earnings smoothly, resulting in higher revenue and profit for the logistics business as a whole. Revenue was ¥289.181 billion, up 5.4% from the previous consolidated fiscal year, while segment profit (operating profit) was ¥10.121 billion, up 5.4%.」

「In the port business, although equipment packing and transportation operations in Japan declined, strong container volumes handled by major shipping lines, including on new routes, spread to warehouse operations in port areas, resulting in higher revenue and profit. In international logistics, overseas project transportation remained firm, and the Company also won orders for equipment export operations, resulting in higher revenue and profit. In the 3PL business, store-delivery operations remained solid and handling volumes for consumer goods and chemical products increased, resulting in higher revenue and profit. Overseas, although some customers brought on-site operations in-house, new on-site operations in the Middle East and elsewhere expanded earnings smoothly, resulting in higher revenue and profit for the logistics business as a whole. Revenue was ¥217.868 billion, up 6.8% year on year, while segment profit (operating profit) was ¥8.171 billion, up 17.7%.」

「In the port business, container volumes handled by major shipping lines, including on new routes, remained strong. In international logistics, although overseas project transportation showed signs of a lull, overall handling volumes were maintained compared with the previous fiscal year, resulting in higher revenue and profit. In the 3PL business, despite the impact of soaring fuel costs and disasters including torrential rain, store-delivery operations remained firm and handling volumes for consumer goods and chemical products increased, resulting in higher revenue and profit. Overseas, although some customers brought on-site operations in-house, new on-site operations in the Middle East progressed smoothly, resulting in higher revenue and profit for the logistics business as a whole. Revenue was ¥142.290 billion, up 7.0% year on year, while segment profit (operating profit) was ¥4.657 billion, up 20.7%.」

「In the port business, container volumes handled by major shipping lines generally increased, aided by the opening of new routes. In international logistics, large-scale project transportation coordinated in Japan and overseas expanded, resulting in higher revenue and profit. In the 3PL business, increased store-delivery operations and withdrawal from low-profitability general logistics operations contributed to earnings. Overseas, the start of new on-site operations in the Middle East resulted in higher revenue and profit for the logistics business as a whole. Revenue was ¥70.946 billion, up 8.0% year on year, while segment profit (operating profit) was ¥2.428 billion, up 33.3%.」

「In the logistics business, the Company promoted earnings improvements through business-structure reforms and expanded sales by leveraging its global network. In the plant engineering business, it strengthened project management and pursued efficiency gains and cost-ratio improvements through system implementation and the development and improvement of construction methods.」

「In the logistics business, the Company worked to expand orders by leveraging its global network and promoted the selection and concentration of businesses in Japan and overseas. In the plant engineering business, it secured order volumes through proactive sales activities, including projects for the following fiscal year and beyond, while improving construction productivity and the cost ratio. In international logistics, increased handling volumes for large-scale equipment export projects coordinated in Japan and overseas resulted in higher revenue and profit. In the 3PL business, the period difference in revenue from store-delivery operations launched in the previous fiscal year and withdrawal from low-profitability operations in Japan and overseas contributed to earnings, and measures to strengthen the business foundation are progressing steadily. In on-site logistics, although some domestic manufacturing sites were affected by lower operating rates, the establishment of new overseas operations increased total work volumes, resulting in higher revenue and profit for the logistics business as a whole. Revenue was ¥204.006 billion, up 5.5% year on year, while segment profit (operating profit) was ¥6.943 billion, up 17.5%.」

「In international logistics, there were upfront one-time costs associated with launching new overseas transportation operations, but large-scale equipment export projects coordinated in Japan and overseas resulted in higher revenue and profit. In the 3PL business, profitability improved substantially due to the period difference in store-delivery revenue compared with the previous fiscal year and the withdrawal from low-profitability businesses overseas. In on-site logistics, the establishment of new overseas operations and higher operating rates at domestic manufacturing sites resulted in higher revenue and profit, and the business as a whole also reported higher revenue and profit. Revenue was ¥132.988 billion, up 4.4% year on year, while segment profit (operating profit) was ¥3.857 billion, up 13.0%.」

「In international logistics, export-related equipment projects for overseas markets and cargo volumes in Southeast and East Asia increased. In the 3PL business, store-delivery revenue contributed from the beginning of the fiscal year, following its launch partway through the second quarter of the previous fiscal year. As a result, the logistics business as a whole reported higher revenue and profit. Revenue was ¥65.688 billion, up 4.9% year on year, while segment profit (operating profit) was ¥1.821 billion, up 56.8%.」

「Meanwhile, in the port business, container volumes handled by shipping lines in Japan remained strong throughout the year. Increased warehouse and export-related operations, together with higher volumes in newly launched store-delivery operations in the 3PL business, resulted in higher revenue and profit overall. Revenue was ¥259.894 billion, up 1.1% from the previous consolidated fiscal year, while segment profit (operating profit) was ¥7.557 billion, up 13.5%.」

「In the 3PL business, handling volumes for chemical materials and general consumer goods remained firm in the third quarter of the current fiscal year, while newly launched small-lot delivery operations and increased inland transportation volumes in China, mainly of automotive-related parts, resulted in higher revenue and profit for the logistics business as a whole. Revenue was ¥193.428 billion, up 0.3% year on year, while segment profit (operating profit) was ¥5.910 billion, up 4.5%.」

「Although international logistics was affected by weak handling of import and export cargo and equipment transportation, continued strong container volumes in the port business, together with the logistics center opened in the previous fiscal year and newly won small-lot delivery operations, contributed to earnings.」

「In response to business-structure reforms in Japan, including reform of the work-operation framework and a review and strengthening of the transportation and delivery framework, as well as the expansion of free trade led by the TPP, the Company will expand its controlled cargo volume in international logistics and improve profitability.」