Deutsche Bahn’s profits jump 18% to $1.6 billion
German state-owned rail operator Deutsche Bahn AG, parent company of international forwarding giant Schenker, posted 1.35 billion euros ($1.63 billion) in earnings before interest and tax (EBIT) in 2005, up 18 percent from 1.14 billion euros in 2004.
DB Logistics, which controls Schenker and now BAX Global, posted revenue of 12.4 billion euros ($15 billion), almost half of the group’s record 25.1 billion euros ($30.3 billion) consolidated revenue, up 4.6 percent from 2004’s result. Schenker’s revenue jumped 11 percent to 8.9 billion euros ($10.7 billion).
Deutsche Bahn completed the $1.1 billion takeover of BAX Global from U.S. security firm The Brink’s Co. in February.
The company, which is planning a public offering in the next few years, said that for 2006 it expects the inclusion of BAX Global to help increase its revenue to about 28 billion euros ($33.8 billion) with EBIT rising by between 15 and 20 percent.
“2006 will be another exciting year for us. We have got off to a good start: the group has done better than last year in the first two months and is ahead of schedule,” said Hartmut Mehdorn, Deutsche Bahn’s chief executive officer.
Deutsche Bahn’s profits jump 18% to $1.6 billion