Corporation in crisis - Deutsche Bahn reports billions in losses in the first half-year
The Deutsche Bahn reported a loss of over one billion Euros in the first half of 2024, according to company documents presented to Reuters on the Wednesday prior. The loss, including interest payments of the heavily indebted corporation, amounted to 1.2 billion Euros. The operating loss (Ebit) was 680 million Euros.
In the previous fiscal year, the railway had achieved a profit of 331 million Euros. A significant portion of the loss is attributed to the dilapidated network, which requires billions in investments. However, the railway has gone into debt for the Bund, which primarily funds the network investments, and expects substantial repayments in this year. The company itself declined to comment and referred to a press conference on Thursday.
Deutsche Bahn faces numerous problems
Apart from the network, almost all other business sectors of the German corporation are still deep in the red: long-distance transport with ICE and IC trains lost 230 million Euros, and freight transport lost 260 million Euros. This is also reflected in shrinking revenues. According to the documents, the group recorded earnings of 22.3 billion Euros in total, down from nearly 25 billion Euros in the first half of 2023.
Notably, the international logistics division Schenker, which is up for sale, reported a business profit of around 500 million Euros, but this was 100 million Euros less than in the previous fiscal year. The company could still reach its target of around one billion Euros in earnings for the year.
Bahn CEO Richard Lutz had announced a business profit of around one billion Euros for the entire year 2024 after the operational loss in 2023. However, this can only be achieved with repayments from the Bundes.
Reuters reported that German Railways, or Deutsche Bahn, faced a crisis with a billion dollar loss in the first half of 2024, citing company documents. This substantial loss, including interest payments, amounted to 1.2 billion Euros.
Despite the significant losses in various business sectors, such as long-distance transport and freight transport, the international logistics division Schenker, which is up for sale, managed to report a business profit of around 500 million Euros for Deutsche Bahn, albeit 100 million Euros less than the previous year.
