CL Segment Continues External Growth with Increased New Orders
Profitability Deteriorates Due to Economic Downturn and Initial Cost Burden
CJ Logistics' profitability has deteriorated due to the domestic economic downturn and the initial cost burden of new businesses.
On May 13, CJ Logistics announced in a regulatory filing that, on a consolidated basis, its sales for the first quarter of this year were provisionally tallied at 2.9926 trillion won, up 2.4% compared to the same period last year. During the same period, operating profit was 85.4 billion won, down 21.9%.
By segment, the "O-NE" business recorded first-quarter sales of 876.2 billion won and operating profit of 34.3 billion won. CJ Logistics explained that both sales and operating profit declined due to weakened consumer sentiment resulting from the economic downturn, as well as the impact of reflecting initial operating costs for stabilizing operations during the early phase of the "Maeil O-NE" service implementation. However, the company expects that the introduction of the daily O-NE service will gradually show positive effects, as demand for differentiated delivery services, especially among major e-commerce players, continues to increase.
In the Contract Logistics (CL) segment, sales reached 813.5 billion won, up 16.7% year-on-year, driven by an increase in new orders based on logistics consulting and technological capabilities. Operating profit was 39.7 billion won, down 3.9%, as initial costs for new orders were reflected.
In the global segment, first-quarter sales and operating profit were 1.143 trillion won and 11.6 billion won, respectively. Compared to the same period last year, sales increased by 6.2%, while operating profit remained at a similar level. Although forwarding sales declined due to uncertainties in the global trade environment, the company continued to achieve external growth, focusing on strategic markets such as the United States and India.
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