Japan Post’s mail service makes profit for 2nd straight year

Japan Post has said its mail delivery service made a profit for the second straight year in fiscal 2004, a result expected to help those against the government’s plan to privatise the public entity.

In the business year ended in March, Japan Post made a net profit of 25.2 billion yen as the number of parcels handled by its “Yu-Pack” door-to-door delivery service increased 17.8 percent. That more than offset a decrease in the delivery of regular mail caused by increased use of e-mail.

The net profit in fiscal 2004 marks a decrease of 4.2 percent from the previous year’s profit of 26.3 billion yen.

Operating revenues in the mail delivery business fell 2.0 percent to 1,933 billion yen, reflecting the widespread use of e-mail and increased competition, Japan Post said.

The profitability of the mail delivery business for the second straight year is expected to encourage lawmakers and others opposed to the government’s plan to privatise Japan Post due partly to its inefficient mail delivery service.

Japan Post’s overall fiscal 2004 earnings report, which has yet to be audited, includes a net profit of 1,234.7 billion yen, down 46.4 percent from the previous year on a 16.1 percent fall in revenues to 20,633.3 billion yen.

Of Japan Post’s two other services in addition to mail delivery, postal savings chalked up a net profit of 1,209.5 billion yen, down 46.8 percent, on a 30.2 percent fall in revenues to 4,098.9 billion yen.

In the postal life insurance business, which incurred a 13.0 percent drop in revenues to 14,665 billion yen, Japan Post added 551.7 billion yen to internal reserves, up from the previous year’s 4.1 billion yen.