JR Hokkaido to Post Largest-Ever Annual Net Loss
Sapporo, Nov. 9 (Jiji Press)--Hokkaido Railway Co., or JR Hokkaido, said Friday that it expects to post a record consolidated net loss of 17.5 billion yen in fiscal 2018 to next March.
The company revised down its earlier projection of a 14-billion-yen net loss, hit by a decline in revenue from railway operations reflecting damage from a strong typhoon that struck the country in early September and a powerful earthquake in the northernmost prefecture of Hokkaido, the service area of the railway operator, in the same month.
JR Hokkaido expects to suffer a year-on-year decline of 1.7 billion yen in railway revenue, after the operations of a total of 7,743 trains, including Shinkansen bullet trains, were canceled by the end of September due to the impacts of the typhoon and the earthquake.
In addition, the company will book expenses for alternative bus services it offered following the earthquake and a special loss of 500 million yen in costs related to restoration after the disasters.
For April-September, JR Hokkaido logged a group operating loss of 17 billion yen, the biggest since the company started releasing first-half earnings in fiscal 2000. The company posted a recurring loss of 100 million yen in the first half of fiscal 2018.
[Copyright The Jiji Press, Ltd.]