CJ Logistics reports lower quarterly profit despite sales growth

CJ Logistics said that second-quarter operating profit fell 11.9 percent to 102 billion won ($71.8 million) from 115 billion won ($81.4 million) a year earlier, citing higher investment and a worsening external environment.

Revenue rose 10.9 percent to 3.38 trillion won ($2.39 billion) from 3.05 trillion won ($2.15 billion) a year earlier, while net income fell 36.8 percent to 36.8 billion won ($26 million) from 58.2 billion won ($41.1 million).

O-NE parcel and e-commerce revenue rose 8.5 percent to 985 billion won ($696 million), but spending on service upgrades pushed operating profit down 10.7 percent to 40.9 billion won ($28.9 million). Contract logistics revenue increased 8 percent to 900 billion won ($636 million), supported by larger strategic-customer volumes and major new contracts. Higher operating costs and infrastructure investment cut the division's operating profit 11.4 percent to 39.8 billion won ($28.1 million).

The global business posted revenue of 1.21 trillion won ($852 million) and operating profit of 20.4 billion won ($14.4 million). CJ Logistics said a weaker forwarding market amid the U.S.-Iran war posed a headwind, though growth in the United States and India and higher cross-border e-commerce volumes supported the business.