Stabilizing earnings through ancillary warehouse operations and coordination with port operations

「In the warehouse business, we will seek to expand revenue and improve profitability by strengthening coordination with the port operations division and intensifying efforts to attract special cargo, including containerized batteries, heavy cargo and hazardous cargo.」

「As a result, sales were ¥842 million, up ¥27 million year on year, or 103.4%, and operating income was ¥23 million, compared with an operating loss of ¥1 million in the same period of the previous year.」

「As a result, sales were ¥1,664 million, up ¥71 million year on year, or 104.5%, while the operating loss was ¥8 million, compared with operating income of ¥8 million in the previous fiscal year, resulting in higher sales but lower profit.」

「In the warehousing business, the hazardous materials warehouses in the Kobe and Himeji areas performed steadily. Developing partner facilities for periods when the Company’s own warehouses were full and strengthening collection sales for ISO tank containers stored outdoors also supported profit. On the other hand, higher depreciation of equipment and machinery and rising labour costs pressured profit. As a result, sales were ¥815 million and the operating loss was ¥1 million.」

「Although the Company strengthened sales activities to acquire new cargo, the warehousing business as a whole struggled because of higher fixed costs, including property taxes and depreciation of equipment, as well as the additional personnel costs incurred to correct the ageing of the workforce. As a result, sales were ¥1,592 million and operating income was ¥8 million.」

「In the warehousing business, handling volumes at the hazardous-goods warehouses in the Kobe and Himeji areas remained at approximately the previous fiscal year's level. In Kobe, however, revenue from cargo handling and ancillary services declined in line with the decrease in import and export cargo handled by the port operations business. In Himeji, the decline in steel handling volumes caused sales at general warehouses to remain sluggish. Consequently, revenue decreased 4.4% year on year to ¥1,197 million. Operating expenses also increased, including depreciation expenses for the hazardous-goods warehouse opened last November, and operating profit fell 57.4% to ¥54 million, resulting in lower revenue and profit.」

「In the warehouse business, inbound and outbound handling and storage at the hazardous-materials warehouses in the Kobe and Himeji areas remained solid. However, handling of marine-container cargo and ancillary work linked to the port operations business remained sluggish. Depreciation expenses for the hazardous-materials warehouse newly established in November of the previous year increased, as did administrative expenses required to operate the facilities, including utilities. As a result, revenue declined to ¥792 million, down 4.6% year on year, and operating profit declined to ¥38 million, down 60.5% year on year.」

「In the warehousing business, storage revenue from the hazardous materials warehouse in the Kobe area increased, but handling revenue declined in line with lower export cargo handling in the port transportation business. As a result, sales were ¥399 million, down 5.1% year on year, while higher costs, including depreciation at the Hyogo Futo Logistics Centre, resulted in operating income of ¥22 million, down 61.5% year on year.」

「In the warehouse business, we aim to further strengthen the competitive advantages of our own warehouses by leveraging their integration with the port operations business and providing customers with attentive services. In recent years, we have focused on handling high-value-added hazardous materials, and the hazardous-materials warehouses built in the Himeji and Kobe areas are developing into new earnings bases. In October 2022, the third hazardous-materials warehouse at the Hyogo Pier Distribution Center site began operating, and we will continue to pursue further earnings growth.」

「In the warehousing business, although handling of general cargo declined, the dangerous-goods warehouses in the Kobe and Himeji areas operated smoothly as a result of sales activities focused on dangerous goods. In November 2022, one additional dangerous-goods warehouse was built at the Hyogo Pier Logistics Center. The acquisition of the site at the end of the previous fiscal year and other factors also reduced costs substantially and significantly improved the profit margin.」

「In the warehouse business, inbound and outbound handling and storage at the hazardous-materials warehouses in the Kobe and Himeji areas remained solid, with high utilization rates continuing. In addition to receiving orders for ancillary work alongside storage and cargo-handling operations, the company significantly improved its profit margin through cost reductions resulting from its acquisition of the Hyogo Pier Distribution Center site at the end of the previous fiscal year.」

「In the warehousing business, handling of general cargo in the Kobe area declined partly due to logistics stagnation caused by the COVID-19 pandemic, but steel-material handling at the Himeji warehouse increased, and operations at the Hyogo Pier Logistics Center proceeded smoothly, including the launch of a new project handling high-value-added dangerous-goods cargo. In addition, lower rent and other cost reductions resulting from the acquisition of the Hyogo Pier Logistics Center site at the end of the previous fiscal year contributed. As a result, revenue was ¥420 million, up 17.7% year on year, and operating profit was ¥57 million, up 210.1%.」

「In the warehouse business, in addition to the solid performance of the Himeji-area warehouses, increased handling volume for hazardous cargo at the Kobe-area warehouses contributed to profit. The resulting success of capital investment led to improved earnings.」

「In the warehousing business, difficult conditions continued for general warehouses due partly to logistics stagnation caused by the COVID-19 pandemic, but sales activities focused on dangerous-goods warehouses enabled the dangerous-goods warehouse at the Hyogo Pier Logistics Center to operate smoothly. Revenue increased to ¥1,090 million, up 2.0% year on year, and operating profit rose to ¥56 million, up 19.8%, aided by the cost reduction from shifting operations to the Hyogo Pier Logistics Center following the sale of the Maya warehouse in the previous fiscal year.」

「In the warehousing business, special cargo such as dangerous goods matched the new facilities suited to current market needs and helped lift performance. However, the effects of the logistics stagnation that began last year continued, making conditions difficult for general warehouses. As a result, lower handling volumes reduced revenue to ¥708 million, down 2.0% year on year. Nevertheless, growth in special cargo supported earnings, resulting in operating profit of ¥36 million, up 14.7%.」

「In the warehousing business, work-related revenue at the Kobe-area warehouses remained firm as the port operations business performed well. In the warehousing business alone, sales activities focused on dangerous-goods warehouses were successful, while the sale of the Maya warehouse and the shift of operations to the Hyogo Pier Logistics Center reduced costs. As a result, revenue was ¥357 million, up 0.7% year on year, and operating profit was ¥18 million, up 262.7%.」

「The main factor behind the increase in revenue in the warehouse business was the full-scale operation of the Hyogo Pier Distribution Center, which began operations in January 2020 as a new earnings base centered on its hazardous-materials warehouse.」

「In the warehousing business, work-related revenue declined due to lower volumes of import and export cargo handled in the port operations business, but the dangerous-goods warehouse at the Hyogo Pier Logistics Center, which began operations in January 2020, operated smoothly as a new earnings base. Revenue increased to ¥1,069 million, up 2.7% year on year. Despite higher depreciation expenses for the new warehouse, efforts to reduce administrative expenses resulted in operating profit of ¥47 million, up 31.4%.」

「Meanwhile, the Hyogo Pier Distribution Center, which began operating at the end of the previous fiscal year and combines hazardous-materials and general-goods warehouses, began driving performance despite the difficult environment. As a result, revenue increased to ¥722 million, up 5.1% year on year. Depreciation expenses for the new warehouse also increased, but the company worked to reduce administrative expenses further and posted an operating profit of ¥31 million, up 28.4% year on year.」

「In the warehousing business, work-related revenue at the Kobe-area warehouses declined as export handling volumes in the port operations business fell, but the dangerous-goods warehouse performed steadily and rental warehouse revenue provided support. As a result, revenue was ¥354 million, up 5.4% year on year, while operating profit declined to ¥5 million, down 61.3%, due to higher costs, including depreciation expenses for the Hyogo Pier Logistics Center, which began operating in January 2020.」

「In the warehousing business, the dangerous-goods warehouse in the Himeji area continued to perform well, and new warehouse land was secured at Hyogo Pier in Kobe Port, with part of it beginning operations as a rental warehouse. Although handling volumes declined to 56 thousand tonnes, down 21.2% year on year, handling of high-value-added cargo and the launch of the rental warehouse contributed to higher revenue of ¥687 million, up 7.7%. Operating profit also increased to ¥24 million, up 112.9%.」

「In the warehousing business, work-related revenue at the Kobe-area warehouses remained firm, and the dangerous-goods warehouse in the Himeji area, which began operations in August 2018, reached full operation. Revenue was ¥336 million, up 2.4% year on year, and operating profit was ¥13 million, up 17.3%.」

「In the warehousing business, work-related revenue at the Kobe-area warehouses increased in line with higher volumes of import and export cargo handled in the port operations business, and the dangerous-goods warehouse in the Himeji area, which began operating in September, also contributed. Revenue therefore increased to ¥999 million, up 7.9% year on year, while operating profit rose substantially to ¥33 million, up 464.6%.」

「In the warehousing business, handling of import cargo, supported by stable domestic economic conditions, provided a foundation, while handling of export cargo grew strongly against the backdrop of the weaker yen. In the Himeji area, the company sought to move away from steel-material warehousing and completed and began operating the area's first dangerous-goods warehouse in September. As a result, handling volumes recovered substantially, leading to higher revenue of ¥638 million, up 4.5% year on year. In addition, the effects of reducing costs such as warehouse operations resulted in operating profit of ¥11 million, compared with an operating loss of ¥0 million in the same period of the previous year, marking a return to profitability.」

「In the warehousing business, work-related revenue at the Kobe-area warehouses increased as revenue in the port operations business rose, and efforts to reduce administrative expenses also contributed. Revenue was ¥328 million, up 6.1% year on year, and operating profit was ¥11 million, up 684.3% year on year.」

「Alongside the strong port operations business, handling volume in the Kobe area increased and performance remained solid. In contrast, the volume of steel storage handled in the Himeji area declined, while operating costs in the Osaka area remained relatively high, leaving overall profitability lacking in strength.」

「In the warehousing business, work-related revenue at the Kobe-area warehouses increased as revenue in the linked port operations business rose, but revenue at the Himeji warehouse, which primarily handles heavy cargo, declined. As a result, revenue was ¥925 million, up 3.9% year on year, and, partly due to the effect of reviewing management and operations following the organizational integration of the Kobe and Osaka logistics centers, operating profit was ¥6 million, compared with an operating loss of ¥23 million in the same period of the previous year.」

「From the current period, the warehousing business has been integrating and reorganizing the organizations of the Kobe and Osaka logistics centers, with the aim of achieving synergies in warehouse personnel and operating measures. In Osaka, the company aims to reduce and improve the loss by securing storage cargo suited to the characteristics of the warehouse, while in Kobe it is reviewing management and operations through personnel exchanges.」

「In the warehousing business, work-related revenue at both the Kobe and Osaka logistics centers increased as revenue in the port operations business rose, and the Maya warehouse operated smoothly. As a result, revenue was ¥309 million, up 4.8% year on year, and operating profit was ¥1 million, compared with an operating loss of ¥8 million in the same period of the previous year.」

「In addition to the cargo-handling expertise developed through our port warehousing operations, we aim to work with the export port-services business by providing ancillary services such as packing, and to stabilize earnings by undertaking higher-value-added work.」

「In addition to the cargo-handling expertise developed through our port warehousing operations, we aim to work with the export port-services business by providing ancillary services such as packing, and to stabilize earnings by undertaking higher-value-added work.」