NON-CONSOLIDATED FINANCIAL HIGHLIGHTS FOR SIX MONTHS ENDED SEPTEMBER 30, 1997
EAST JAPAN RAILWAY COMPANY(9020)
|Millions of Yen
||Six Months ended September 30, 1996
||Six Months ended September 30, 1997
||March 31, 1997
||September 30, 1997
|Total Shareholders' Equity
|Figures are rounded down to the nearest million.
Overview of Interim Results and Outlook
During the first half of the fiscal year, the Japanese economy was impacted by steep drops in domestic demand, such as consumer spending and housing construction, in the wake of the April 1997 consumption tax hike. This has resulted in an unfavorable outlook for the economy, which had been posting a gradual recovery. In this environment, passenger volume at JR East declined compared with the same period a year earlier.
Due to the decline in passenger volume and the transfer of certain directly operated stores to JR East group companies and the closing of underperforming stores, operating revenues decreased 1.3% to 974.3 billion yen. Operating expenses increased due to the termination of special reductions in property taxes as well as amortization of a payment required upon the merger of Japan Railways Group Mutual Aid Association into the Welfare Pension (national pension). Non-operating expenses were down sharply as losses on early redemptions of certain bonds and interest expenses fell. As a result, ordinary income decreased 6.8% to 61.4 billion yen and net income was down 7.8% to 32.2 billion yen.
For the second half of the fiscal year, the outlook for the Japanese economy remains uncertain. JR East will take aggressive revenue-expansion actions that make effective use of the Akita hybrid Shinkansen, the new Shinkansen to Nagano and other services, work to strengthen the Company's financial position, and take other measures to make operations more efficient. In this manner, the Company will make efforts to achieve the goals set forth for the current fiscal year.