The German national railroad experienced a net loss of 1.3 billion euros for the 2015 fiscal year, while revenues topped 40 billion euros.
German national railroad Deutsche Bahn posted a net loss of 1.3 billion euros (U.S. $1.45 billion) for the 2015 fiscal year.
Meanwhile, revenues, which topped 40 billion euros for the first time ever, inched up 1.9 percent year-over-year to 40.5 billion euros, Deutsche Bahn said.
Deutsche Bahn’s adjusted earnings before interest and tax (EBIT) fell 16.6 percent from the 2014 fiscal year to 1.76 billion euros, which it attributed in part to special write-downs in rail freight support and non-recurring items due to the restructuring process. In addition, the EBIT also declined partially due to strikes, Deutsche Bahn CEO Dr. Rüdiger Grube said.
“We need to make far-reaching improvements, and that is why we launched a Group restructuring process and our ‘Zukunft Bahn’ (future of rail operations in Germany) program last year to raise quality in a noticeable way for our customers and thus return to a path of economic success,” said Grube.
The freight transport and logistics segment saw rail freight volumes fall 4.3 percent year-over-year to 98.4 billion metric ton kilometers. DB Schenker saw land transport consignments and airfreight volumes rise 2.9 percent and 1.4 percent year-over-year, respectively. However, ocean freight volumes dropped 2.1 percent from the 2014 fiscal year.
Last week, DB Schenker and Amsterdam-based GLS Group announced an agreement to jointly provide parcel delivery services for businesses and e-commerce customers throughout Germany. GLS will deliver national parcels in Germany for DB Schenker and will handle international consignments, while DB Schenker will transport palletized loads for GLS’s customers.
DB Schenker Inc. is also eliminating 151 jobs in Groveport, Ohio, but affected workers are expected to have job opportunities with a new employer, according to the Columbus Business First. On May 1, DB Schenker plans to close its warehouse in Groveport, which is currently leased by Kraft Heinz Co., while a new logistics provider is expected to take over for the food company.
Meanwhile, Deutsche Bahn’s affiliate DB International, an engineering and consulting firm that designs and carries out infrastructure and mobility projects throughout the world, generated 200 million euros in revenues in 2015, a 20 percent year-over-year increase.
“Our order book is an important indicator of our success,” DB International Chairman of the Board of Managing Directors Niko Warbanoff said. “We have seen substantial growth in the last five years, with orders up 70 percent. Combined, our current orders are worth 210 million Euros.”
In the coming months, DB International and its partners will commence construction to build Canberra, Australia’s first light rail, with DB International providing consulting services throughout the construction phase and the first 20 years of operation for operations and maintenance.
In addition, the merger of DB International and DB ProjektBau, which currently handles orders and projects for Deutsche Bahn, to establish DB Engineering & Consulting, will be finalized April 1.
Deutsche Bahn posts $1.4b net loss in 2015
