Deutsche Bahn reports profit without subsidies

16th March 2005, Comments 0 comments

16 March 2005, BERLIN - German railway company Deutsche Bahn (DB) on Wednesday announced an operating profit of EUR 250 million for 2004, making it the first ever year the firm had operated in the black without federal subsidies.

16 March 2005

BERLIN - German railway company Deutsche Bahn (DB) on Wednesday announced an operating profit of EUR 250 million for 2004, making it the first ever year the firm had operated in the black without federal subsidies.

DB said the figure, coming after net losses of EUR 172 million in 2003, showed the results of the railway's revamping and efforts to streamline its management.

Company chairman Hartmut Mehdorn praised the profit figures as being an important step as DB prepares to become a publicly-listed company. But he said further improvements in productivity and cost management were still needed.

The earnings came on revenues of EUR 24 billion, down slightly from 2003 levels, reflecting DB's sales of some assets.

Amid further management restructuring at DB's Berlin headquarters, the company has trimmed its formerly five divisions to three, for passenger services, cargo and logistics.

Also on Wednesday, in an historic first, Margret Suckale was named as DB's personnel director, becoming the first woman ever to join the executive board of the German railroad. Suckale is currently head of DB's legal affairs office.

DPA

Subject: German news

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