About Deutsche Bahn losses and DB Schenker profits...

Deutsche Bahn reported a trading update today in which it disclosed an “operating loss as expected: adjusted EBIT of EUR -964 million”.

That’s a net operating loss before interests to be paid on debts and taxes of about €2.7m daily.

Other takeaways:  

– “Upfront maintenance expenses of EUR 1 billion for infrastructure overhaul”

– “Continued increase in demand for passenger service”

– “Positive EBIT of over EUR 1 billion planned for 2024”

It added: 

“DB Group generated revenues totaling roughly EUR 45.2 billion in the 2023 financial year, down about 13% from 2022. The decline can largely be attributed to the industry-wide normalization of freight rates in international logistics, which, as expected, was also felt by DB Schenker. With an operating profit of EUR 1.1 billion, DB Schenker’s adjusted EBIT was still more than twice as high as it was before the Covid pandemic.”

CEO Jochen Thewes wrote on LinkedIn:

“Irrespective of a potential sale of DB SCHENKER, highest service excellence and full customer focus remain absolutely key for us. We are well-positioned in our industry and can look forward optimistically to 2024! This would not have been possible without our employees. So, let me thank all our colleagues for driving us through challenging times!​”

The full release is here: “Deutsche Bahn invests a record EUR7.6bn in Strong Rail in Germany in 2023”.