Business / Corporate

Japan Post logs ¥29 billion net loss; first since privatization

Kyodo

Japan Post Holdings Co. logged a group net loss of ¥28.98 billion for fiscal 2016, its first red ink since its privatization in 2007, due to a massive write-down of its Australian logistics arm.

The postal and financial services provider said Monday it booked a loss of ¥400.33 billion in connection with Australian subsidiary Toll Holdings Ltd., which it acquired in 2015 in a bid to expand overseas operations.

Group revenue in the business year that ended March 31 fell 6.5 percent from the previous year to ¥13.33 trillion.

Japan Post also said its banking and insurance units’ margins were squeezed by lower interest rates caused by the Bank of Japan’s large-scale monetary easing.

The company expects to return to profitability in the current fiscal year, projecting a group net profit of ¥400 billion, with group revenue falling 6.5 percent to ¥12.46 trillion.

President Masatsugu Nagato told a news conference that a postcard delivery rate hike in June will help.

He declined to confirm whether the company was considering a tender offer for Nomura Real Estate Holdings Inc., saying “we will consider all acquisitions related to our core businesses as long as they help us to grow and improve our performance.”

“We learned our lesson with Toll. We would have to look at any deal carefully,” he added. Media reports emerged Friday about the potential deal.

Japan Post was a government agency until it was privatized in 2007. It was listed on the Tokyo Stock Exchange in 2015 along with subsidiaries Japan Post Bank Co. and Japan Post Insurance Co.