Thursday, March 14, 2013
JR West Boosts Safety Spending In New 5-Year Plan
OSAKA (Nikkei)--West Japan Railway Co. (9021) will spend 470 billion yen on safety improvements over the next five years through fiscal 2017, the firm said Wednesday in its medium-term business plan.
This will mark a rise from the 460 billion yen of the past five years. JR West, which suffered a fatal derailment accident back in 2005, will strengthen such safety measures as control systems and train parts replacement while working to make bridges more earthquake-resistant.
Overall group investment will total 920 billion yen, down 6% from the five years ending fiscal 2012, as the redevelopment of Osaka Station and other big projects run their course.
Consolidated operating revenues, or sales, are expected to total 1.3 trillion yen in fiscal 2017, roughly in line with the fiscal 2012 estimate. But JR West aims to lift group net profit 18% from fiscal 2012 to a record 66 billion yen in fiscal 2017. Populations around train routes continue to decline, but the company plans to strengthen its real estate and distribution businesses to enhance its earnings power.
(The Nikkei, March 14 morning edition)