Japan Post suffers parcel loss
Japan Post’s parcel business suffered a 12.7bn yen operating loss in fiscal 2009, 3.5 times worse than a year earlier and its third straight year in the red, reports Nikkei. The article continues:
Amid the economic downturn, sales per parcel declined. System costs weighed on earnings as well.
Although packages handled by the Japan Post Holdings Co. unit increased, its flagship Yu-Pack service sustained a 4.7% decline. Yu-Pack’s prolonged delivery delays this month have led customers to look elsewhere, boding poorly for its earnings prospects this fiscal year as well.
The postal company’s mail delivery business saw a 17% jump in operating profit to 58.9bn yen. Express and other mail operations entailing special handling turned profitable after the firm discontinued a service that required recipients to sign off on deliveries. Margins on letters and postcards fell.
