Germany’s Deutsche Bahn (DB) bounced back into profit in 2016, the company’s new chief executive, Richard Lutz, has announced.
Last year, the company reported its first loss since 2003 even after recording annual sales of more than €40 billion for the first time.
The €1.3 billion net loss was down to special write-downs in its rail freight business, driver strikes and some non-recurring costs associated with restructuring.
Announcing on March 22 that the company was “firmly back in the black”, DB said its revenues increased by 0.3 per cent to €40.6 billion in 2016, with a net profit of €716 million.
Adjusted earnings before interest and taxes (EBIT) rose by 10.6 per cent to €1.95 billion.
Deutsche Bahn’s new chief executive, Dr Richard Lutz, said: “Our Zukunft Bahn program is all about quality, and we are seeing the effects of our work to raise punctuality, improve cleanliness and offer our passengers better travel information.”
He added: “What is more, adjusted earnings before interest and taxes (EBIT) not only exceeded our target, but also rose more than 10 per cent year on year, to over EUR 1.9 billion. We also continued to generate growth at our international businesses. 2016 was a good year for Deutsche Bahn.”
Rail patronage increased by seven million passengers last year. Long-distance passenger numbers increased by 7.1 million to 139 million last year.