💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

UPDATE 1-Deutsche Bahn operating profit sinks, job cuts ahead

Published 10/28/2009, 09:53 AM
Updated 10/28/2009, 09:57 AM

* 8-mo operating profit sinks 47 percent to 950 mln euros

* Plans up to 2,000 admin job cuts

(Adds details, company reaction)

BERLIN, Oct 28 (Reuters) - German railway operator Deutsche Bahn AG's operating profit sank 47 percent in the first eight months of 2009 and it is planning up to 2,000 admin job cuts, a document seen by Reuters on Wednesday showed.

The group's earnings before interest and tax (EBIT) slumped to 950 million euros ($1.4 billion) by the end of August, around half the level of the same period last year, while revenue fell 14.5 percent to 19 billion euros, according to the document.

The company expects further profit over the last quarter, partly due to cost savings, and still hopes to achieve its goal of an operating profit of 1.8 billion euros in 2009, versus 2.5 billion in 2008.

A spokesman for Deutsche Bahn declined to comment on the figures, but said the company was still turning a profit.

The railway operator wants to cut between 1,700 and 2,000 jobs in administration over the next two years, saving 125 million euros by 2011, the document showed.

Germany's new centre-right government led by Chancellor Angela Merkel has agreed it wants to sell state shareholdings although it has fixed no deadlines for any specific sales.

The partial privatisation of Deutsche Bahn was shelved last October due to weak markets. The IPO would have been Germany's largest since 2000. (Reporting by Markus Wacket; Writing by Sarah Marsh; Editing by David Holmes) ($1=.6740 Euro)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.