Profit below expectations
20.03.2008
German rail operator Deutsche Bahn AG raised its earnings after tax and interest payments to 1.5 billion euros ($2.4 billion) last year, a source familiar with the figures said on Tuesday, according to Reuters.
This meant last year's profit was 300 million euros higher than in 2006, but fell short of the 1.64 billion Deutsche Bahn had targeted in its mid-term planning, the source added.
The company, which is set to be partly privatised by the end of 2009, suffered losses due to a train drivers' strike last year. Sales in 2007 were some 31 billion euros, the source added.
Earnings before interest and tax (EBIT) were 2.5 billion euros last year, the source told Reuters. A spokesman for Deutsche Bahn declined to comment on the figures.
The company also expects a solid earnings trend for the first six months of 2008 but with a slightly weaker second half due to a slowdown in economic growth, the source added.
Deutsche Bahn also expects a wage deal recently agreed with train drivers to add 350 million euros to payroll costs above and beyond what was previously planned in the 2008 budget.
The company, which is set to be partly privatised by the end of 2009, suffered losses due to a train drivers' strike last year. Sales in 2007 were some 31 billion euros, the source added.
Earnings before interest and tax (EBIT) were 2.5 billion euros last year, the source told Reuters. A spokesman for Deutsche Bahn declined to comment on the figures.
The company also expects a solid earnings trend for the first six months of 2008 but with a slightly weaker second half due to a slowdown in economic growth, the source added.
Deutsche Bahn also expects a wage deal recently agreed with train drivers to add 350 million euros to payroll costs above and beyond what was previously planned in the 2008 budget.
