East Japan Railway Co. forecast on Monday an increase in operating profit of 19 percent over the next three fiscal years as it cuts debt and carries more passengers.
The company predicts operating profit of ¥518 billion in the fiscal year ending March 2011, compared with an expected ¥436 billion this business year, which ended Monday. Sales will rise 3 percent to ¥2.78 trillion, from ¥2.7 trillion, it said.
JR East will extend its high-speed shinkansen network to Aomori during the period as part of a ¥1.4 trillion capital investment plan. The company aims to cut its debt to reduce interest expenses, which were equal to 36 percent of operating profit in the fiscal year that ended in March 2007.