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ÖBB with Positive Operating Result in First Half of 2011

Published: September 29, 2011; 15:09 · (Vindobona)

The Austrian Federal Railways continue their restructuring program. Management expects to leave the loss zone by 2013.

ÖBB with Positive Operating Result in First Half of 2011 / Picture: © Wikimedia Commons / Tokfo [Attribution]

The ÖBB will hold on to its restructuring plan: The railway company wants to expand its core business segments, increase the number of passengers and goods transported, and improve quality and efficiency. Furthermore, the group intends to establish a low-cost carrier in Southeastern Europe together with an international partner. Non-core segments such as the forwarding business, travel agencies and tourist trains will be given up. In order to make the strategy work, the Austrian state would have to contribute a capital injection of € 400m, stated CEO Christian Kern at the presentation of the group’s half-year results.

In the first six months of 2011, the ÖBB performed better than expected and recorded EBT of € 27.4m. All three subgroups contributed to the positive development: The passenger transport business achieved € 25.9m (€ 3.7m above budget), the cargo unit RCA recorded a loss of € 10.4m (€ 33.4m better than budgeted) and the infrastructure unit recorded earnings of € 6.4m (€ 14.1m above budget). The consolidated result of € 27.4m was thus € 60.5m above plan.

Despite the positive trend, management still expects a loss of € 49m for the full year. In 2010, the group had recorded EBT of € -330m.

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