CJ Logistics(000120) said in a regulatory filing on the 11th that operating profit on a consolidation basis in the second quarter of this year was tentatively tallied at 101.6 billion won, down 11.9% from a year earlier.
Revenue for the same period was tentatively tallied at 3.38 trillion won, up 10.9%, and net profit was 36.8% lower at 36.8 billion won.
By institutional sector, the parcel (O-NE) unit's second-quarter operating profit was 40.9 billion won, down 10.7% from a year earlier, while revenue rose 8.5% to 984.8 billion won.
The contract logistics (CL) division posted second-quarter operating profit of 39.8 billion won, down 11.4% from a year earlier, while revenue rose 8% over the same period to 900.1 billion won.
The global division recorded operating profit of 20.4 billion won, down 1.4% over the same period, and revenue of 1.206 trillion won, up 9.4%.
CJ Logistics said the parcel institutional sector strengthened service competitiveness with offerings such as Mailone, a seven-days-a-week delivery service, and Sendone, a person-to-person parcel service, but operating profit fell due to investments in service upgrades.
It explained that the contract logistics institutional sector and the global division saw operating profit decline due to cost increases from external headwinds such as oil prices and exchange rates, and the impact of infrastructure investment.
CJ Logistics plans in the third quarter of this year to enhance competitiveness by diversifying the parcel business portfolio to lead market realignment, cutting costs in the CL business and maximizing client logistics efficiency, and strengthening the global institutional sector's global E2E logistics system.