(LEAD) CJ Logistics Q3 net falls 25.5 pct on higher costs

SEOUL, Nov. 10 (Yonhap) -- CJ Logistics Corp., one of South Korea's leading logistics firms, said Tuesday its third-quarter net profit dropped 25.5 percent from a year earlier, largely due to higher operating costs.

Net profit for the three months that ended on Sept. 30 fell to 54.7 billion won (US$40.8 million) from 73.4 billion won a year earlier, the company said in a regulatory filing.

"Higher operating costs stemming from prolonged tensions in the Middle East, increased investment in facilities and fewer working days due to the Chuseok holiday weighed on quarterly earnings," a company spokesperson said.

The Chuseok holiday, Korea's traditional harvest festival, fell in the third quarter this year, compared with the fourth quarter last year.

Operating profit also declined 25.3 percent to 110.5 billion won in the third quarter from 147.9 billion won a year earlier. Sales, however, rose 9.5 percent to 3.35 trillion won from 3.07 trillion won.

Growth in sales from its O-NE daily delivery service and contract logistics division contributed to the increase in overall revenue, CJ Logistics said.

Launched in January 2025, the O-NE service offers seven-day-a-week deliveries, including on public holidays, as the company seeks to strengthen its competitiveness against Coupang Inc., a major player in South Korea's e-commerce market.

From January to September, net income fell 25 percent to 129.38 billion won from 172.59 billion won in the year-ago period.

Operating profit dropped 12.7 percent on-year to 304.22 billion won, while sales increased 9.3 percent to 9.95 trillion won.