North American auto industry demand boosts Nippon Express

Nippon ExpressFrequent shipments of automotive parts, paired with lower fuel costs, helped Japan-based forwarder Nippon Express Co. generate US$328 million in operating profit for the April-December 2015 period, which was up 12 percent, compared to last year, and its highest operating profit ever in the nine-month period.

Sales were an estimated $US12.7 billion, up 2 percent due to strong overseas business, primarily in North and Central America.  Nippon’s revenues were boosted further with the acquisition of logistics company NEC, in December 2014.

Nippon Express, also known as Nittsu, delivered auto parts made in Japan and other locations in Asia to Japanese-owned facilities in the United States and Mexico, where the demand was strong and the weaker yen amplified the revenues of overseas subsidiaries. Logistics demand in Japan was also robust due to consumer spending and online shopping.

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