Press Releases(Archive)
FY2012 - FY2003

Damage and Revised Forecasts of Financial Results Caused by the Earthquake in Chuetsu, Niigata Prefecture

East Japan Railway Company
Mutsutake Otsuka, President and CEO

March 1, 2005

1. Financial Damage Relating to the Earthquake in Chuetsu, Niigata Prefecture

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.

[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.

[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.

[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.

2. Revised Earnings Forecast

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)
(Unit: millions of yen)
  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)
(Unit: millions of yen)
  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

3. Reason for Revision

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.

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