Flooded Shinkansen May Cost JR East Up to 11.8 B. Yen
Tokyo, Oct. 28 (Jiji Press)--The book value of East Japan Railway Co.'s <9020> Hokuriku Shinkansen bullet train cars flooded due to Typhoon Hagibis stood at 11.8 billion yen as of the end of September, the company, better known as JR East, said Monday.
Ten 12-car Hokuriku Shinkansen trains at a JR East-managed rail yard in the central Japan city of Nagano were damaged by the flooding of the nearby Chikuma River caused by the 19th typhoon of the year. Eight of the 10 trains are owned by JR East, one of the two operators of the high-speed line, and two by West Japan Railway Co. <9021>, or JR West, the other operator.
If JR East scraps the eight trains, it would be forced to report a related loss of up to 11.8 billion yen.
The company expects that Typhoon Hagibis, which hit central and eastern Japan earlier this month, dented its revenue by 12 billion yen in October. JR East, however, has not changed its earnings forecast for the business year to March 2020 as it has yet to assess the full damage from the typhoon.
Meanwhile, JR West plans to report the book value of 3 billion yen for its two flooded Hokuriku Shinkansen trains as an extraordinary loss.
[Copyright The Jiji Press, Ltd.]