Hitachi Transport System reports revenues up 14.0% in FY2021

Hitachi Indian Subsidiary FLYJAC

For the year ending March 31, 2022, Hitachi Transport System Ltd recorded revenues of ¥*743,612m, an increase of 14.0% y-o-y. Operating income increased by 5.0% y-o-y to ¥38,696m. However, EBIT and net income decreased by 34.0% and 39.0% y-o-y to ¥29,417m and ¥14,622m, respectively.

Revenues of Domestic Logistics business decreased by 1.0% y-o-y to ¥417,162m. Segment profit decreased by 6.0% y-o-y to ¥23,678m due to the fire at a logistics centre of Hitachi’s group company despite an improvement in productivity.

Revenues of Global Logistics business increased by 45.0% y-o-y to ¥313,494m due to an increase in handling volume mainly in the freight forwarding business and automobile-related business.

Segment profit increased by 32.0 % y-o-y to ¥13,642m due to an increase in revenues and improved productivity in the freight forwarding business.

Revenues of other services decreased by 13% y-o-y to ¥12,956m. Segment profit increased by 15% y-o-y to ¥1,376m.

It was recently announced that the US private equity firm Kohlberg Kravis Roberts (KKR), has bid to take effective control of Hitachi Transport System, one of Japan’s largest logistics providers.

In a statement issued on April 28, 2022, KKR said that it would acquire 90.0% of the voting shares of Hitachi Transport System, with the wider Hitachi Group retaining 10.0% of the voting shares.

Moving forward, the company has embarked on a new corporate strategy called ‘LOGISTEED 2030’ which seeks to redefine its businesses around technology and expand its activities outside Japan. In particular, the company is looking to expand in North America and Europe, most likely through acquisition.

Source: Hitachi Transport Systems Ltd

*$ = ¥129.9/ € = ¥136.8