West Japan Railway Co. said Tuesday its group net profit in the April-June quarter rose 4.0 percent from a year ago to 13.87 billion yen despite the fatal April 25 train derailment in Amagasaki, Hyogo Prefecture.
In the first three months of the 2005 business year, JR West said its pretax profit jumped 16.7 percent to 24.75 billion yen on operating revenues of 293.71 billion yen, up 0.5 percent.
The railway booked 3 billion yen in accident-related losses, including 1.8 billion yen for consolation payments to families of the deceased and treatment for injured passengers.
But some of the profit gain was achieved by cutting personnel expenses.
JR West traced the fatter revenues mainly to greater sales at its travel agency segment and retail business subsidiary, which offset the impact of the massive accident on its passenger business.
But JR West did not revise downward its profit and revenue projections for the full year to next March 31.
“It is difficult at this juncture to precisely estimate the size of the expenses we will incur in the coming months due to the derailment,” the company said.
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