Japan Post’s April-Sept net profit jumps 2.8 times

Japan Post’s net profit totaled 998.4 billion yen in April-September, about 2.8 times the figure for the same period last year, the state-run postal service company said Monday.

Although Japan Post reported an asset impairment loss of 224.3 billion yen and costs of about 5 billion yen to prepare for privatization, such red ink was more than offset by returns from stock investment.

Recurring profit went 2.38-fold to 1,526.6 billion yen, while revenue rose 20.0 pct to 12,220.4 billion yen.

If earnings continue to expand at this pace, Japan Post will be able to contribute 200 billion to 300 billion yen to state coffers during four years of its operations as a public enterprise, President Masaharu Ikuta said.

Among the public enterprise’s three core businesses, revenue at the mail service stopped falling as declines in letter deliveries were offset by growth in package deliveries. But the service incurred a net loss of 70.1 billion yen in the first half of fiscal 2005.

The mail service is likely to rack up a net profit for the full year to March 31, but the figure is expected to be down from the previous year because of additional costs to prepare for Japan Post’s privatization and the adoption of asset impairment accounting.

The savings business produced a profit of 1,068.5 billion yen, up about 2.56 times, due mainly to income of 593.6 billion yen from money in trust. Profit equivalent to a private bank’s net profit from core operations came to 575 billion yen, up 12.1 pct.

For the insurance business, internal reserves expanded 250.7 billion yen since returns form stock investment increased. [EARNINGS]