Kinki Nippon Railway Co. said Tuesday it will book an extraordinary loss of 106 billion yen for the 2002 business year, primarily due to appraisal losses suffered on resort facilities and a downsizing program.
The firm will book a 52 billion yen loss tied to appraisal losses from its Shima Peninsula resort facilities.
These special losses will not affect parent-only and group earnings projections for the business year, Kinki Nippon Railway said.
The workforce downsizing and transference program will affect 3,223 employees, according to the firm. Of these, 2,624 will quit and be rehired under new contractual terms.
The workforce downsizing plan will help the firm slash annual personnel expenses by 10 billion yen, beginning in fiscal 2003, it said.
Meanwhile, the railway operator's board of directors has approved Vice President Masanori Yamaguchi as the firm's new president, contingent on approval at a shareholders' general meeting slated for late June.
Current President Akio Tsujii, who has spearheaded the company's business improvement program, will assume the chairmanship.