Japan Post's mail service seen to have incurred 99 pct profit fall

Japan Post saw net profit in its mail and parcel service in fiscal 2005 fall 99 pct from the previous year to 200 million yen, informed sources said Monday.

The mail and parcel service experienced a fall in business volume for the fourth straight year due to lower demand reflecting the spread of the Internet, the sources said.

In addition, the segment’s personnel costs increased in the year to March after the public company boosted wages to part-time workers. Heavy computer system development costs to prepare for the privatization, slated to begin in October 2007, also weighed on its earnings.

The dismal earnings are expected to add fuel to calls for an improvement in the sector’s weak profit-generating capability.

Meanwhile, Japan Post’s “Yucho” savings service is believed to have boosted its net profit by 700 billion yen to 1.9 trillion yen thanks to an increase in stock investment gains. The figure is far higher than net profits earned by major banks.

The “Kampo” insurance business is seen to have enjoyed a hefty profit. As a result, the sector is believed to set aside 900 billion yen as retained earnings, up sharply from the previous year’s 551.7 billion yen.

Japan Post sees 5.6 bil. yen fiscal 2006 net loss in mail service+
AP Alert – BusinessAP Alert – Financial 05-24-2006
TOKYO, May 24_(Kyodo) _ Japan Post said Wednesday its mail service business will show a net loss of 5.6 billion yen for the current 2006 business year ending in March 2007.

The loss will mark the first red ink in four years.