East Japan Railway Company
Mutsutake Otsuka, President and CEO
March 1, 2005
East Japan Railway Company (JR East) has estimated the financial damage for the JR East Group from the earthquake that struck the Chuetsu region of Niigata Prefecture on October 23, 2004.
[1] | Decrease in Revenue |
As announced in the press release of December 16, 2004 (Monetary Damages Relating to the Earthquake in Chuetsu, Niigata Prefecture), we estimate a decrease in revenue as follows: from loss of revenue from transportation, approximately ¥13 billion, and from loss of station space utilization, approximately ¥1 billion. The total decrease is thus approximately ¥14 billion. |
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[2] | Repair of Railway Infrastructure |
Repair of railway infrastructure is expected to cost approximately ¥22 billion in all. Of this amount, approximately ¥16 billion will be reflected as a loss on the profit-and-loss statement. |
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[3] | Restoration of the Shinanogawa Power Plant |
Restoring the Shinanogawa Power Plant is expected to cost approximately ¥23 billion in all. Of this amount, approximately ¥19 billion will be reflected as a loss on the profit-and-loss statement. |
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[4] | Others |
Expenses are expected to rise in the current term by approximately ¥7 billion from operating buses as alternative transportation in areas where trains were running, from purchasing required electrical power because the Shinanogawa Power Plant was not fully operational, and from other factors. |
We have revised the earnings forecast announced on February 10, 2005 (in Performance for the Third Quarter of FY2005) for the year ending March 31, 2005 (April 1, 2004-March 31, 2005) as follows.
[1] | Revision to the consolidated earnings forecast for the year ending March 2005 (April 1, 2004-March 31, 2005) |
Operating Revenues | Operating Income | Ordinary Income | Net Income | |
Amount Forecasted (A) (Announced February 10, 2005) |
2,535,000 | 352,000 | 199,000 | 127,000 |
Revised Forecast (B) |
2,535,000 | 352,000 | 201,000 | 108,000 |
Amount of Increase or Decrease (B-A) | 0 | 0 | 2,000 | Δ19,000 |
Change (%) | 0 | 0 | 1.0 | Δ15.0 |
(Reference) Previous Term Performance (for the year ended March 2004) |
2,542,297 | 351,419 | 225,365 | 119,866 |
[2] | Revision to the unconsolidated earnings forecast for the year ended March 2005 (April 1, 2004-March 31, 2005) |
Operating Revenues | Operating Income | Ordinary Income | Net Income | |
Amount Forecasted (A) (Announced February 10, 2005) |
1,885,000 | 304,000 | 154,000 | 110,000 |
Revised Forecast (B) | 1,885,000 | 304,000 | 156,000 | 91,000 |
Amount of Increase or Decrease (B-A) | 0 | 0 | 2,000 | Δ19,000 |
Change (%) | 0 | 0 | 1.3 | Δ17.3 |
(Reference) Previous Term Performance (for the year ended March 2004) |
1,897,242 | 307,526 | 183,209 | 104,319 |
The budgetary structure for repair of railway infrastructure was still undetermined at the time
of the February 10, 2005 press release, Performance for the Third Quarter of FY2005 (for the year ended March 31, 2005).
Thus, the expense was not reflected in the earnings forecast. Similarly, our policy regarding expenditure to restore
the Shinanogawa Power Plant had not been determined, so this expense also was not reflected in the earnings forecast.
We have now determined the budgetary structure for repair of railway infrastructure as well as our budgetary policy regarding restoration
of the Shinanogawa Power Plant, so we have incorporated these expenses in the revised earnings forecast. In 1. Financial Damage Relating
to the Earthquake in Chuetsu, Niigata Prefecture, the total loss for items (2) Repair of Railway Infrastructure and (3) Restoration
of the Shinanogawa Power Plant as reflected in the profit-and-loss statement is expected to be calculated as extraordinary loss
for the year ended March 31, 2005. Finally, the decrease in interest expense is expected to produce a gain in non-operating income
and expenses of approximately ¥2 billion, which will also be reflected in the earnings forecast.
In addition, in 1. Financial Damage Relating to the Earthquake in Chuetsu, Niigata Prefecture, expenses for items (1) Decrease
in Revenue and (4) Others were reflected in the earnings forecast as announced in the February 10, 2005 press release Performance
for the Third Quarter of FY2005 for the year ended March 31, 2005.