JR Tokai Quarter’s largest ever deficit July 31 at 7:03 p.m. due to a sharp decline in Shinkansen users
Jr Tokai’s financial results for the three months leading up to June showed a loss of 72.6 billion yen, mainly due to a sharp decline in the number of users of the Tokaido Shinkansen due to the spread of the new Coronavirus infection. The deficit is the largest in the quarter.
According to the group’s overall financial results for the three months from April to June, sales fell 72.7% from the same period last year to 128.7 billion yen, and the final profit and loss were 72.6 billion yen.
The deficit was the largest in the quarter and the first quarter’s financial results were in the final loss.
This is because the spread of the new Coronavirus has led to a widespread movement to refrain from going out or moving, and the number of users of the Tokaido Shinkansen has decreased dramatically, and income from department stores and hotels operated by the Group has decreased significantly.
In addition, the company did not disclose its earnings forecast for the year ending March next year, saying that the impact of the new coronavirus could not be foreseen.
At a press conference, Mr. Kimuranaka, General Manager of Business Administration at JR Tokai, said, “We are in a very difficult situation. The number of railway passengers was recovering little by little, but the infection of the new coronavirus is spreading again mainly in Tokyo, and the future cannot be foreseen.”