Tokyu announces restructuring plan

Tokyu Corp., a major railroad operator, announced a restructuring plan Tuesday to turn itself into a virtual holding company to strengthen its control over 500 group firms.

Tokyu will establish a group corporate conference to be chaired by the firm’s president and to monitor the performance of group companies, company officials said.

The firm aims to reduce consolidated interest-bearing debts that totaled 3 trillion yen at the end of March to 2.5 trillion yen by the end of March 2003.

Tokyu will classify its group companies into three categories: core businesses, peripheral businesses and unneeded businesses.

The group plans to put more emphasis on such key areas as cable television, real estate trusts, and non-Tokyu group shops for railway station complexes, the company said.

For fiscal 1999, which ended March 31, Tokyu will report a special loss of 9.83 billion yen, due primarily to appraisal losses on stockholdings in a wholly owned subsidiary and on real estate holdings, the company said.

The loss from stockholdings in the subsidiary came to 7.375 billion yen, while the loss from the real estate holdings totaled 2.454 billion yen.

Despite the special loss, Tokyu’s after-tax profit is estimated at 6.3 billion yen, unchanged from the previous forecast, on revenue of 282.6 billion yen, up slightly from 282.3 billion yen.

The company raised its pretax profit estimate from 26.3 billion yen to 31 billion yen.