News: QR National $70M hit to profit due to flood

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QR National (ASX:QRN) has warned it will miss its prospectus net profit target for this financial year by up to 21 per cent.

The rail group says the Queensland floods have negatively impacted coal volumes.

Track repairs, reduced revenue from access fees and lower production volumes are expected to cost $70 million in lost profits.

QR said it would spend $10 million to repair track for all four coal systems. It has began a claims process with the Queensland Competition Authority and customers to recover costs.

Analysts are taking comfort in the minimal damage to rolling stock and the limited cost of repairs to damaged tracks.