Deutsche Bahn board urges flotation, record results expected in 2006
The supervisory board of German rail and logistics giant Deutsche Bahn Friday unanimously passed a resolution pressing for a stock market flotation of the company.
“To ensure the continuation of the successful business results that have been achieved so far private capital is indispensable,” according to the supervisory board’s resolution.
“The recent development of the company, and the developments planned for the future, have been based on the consideration that the railroad can only be successful in the long term if it has sufficient access to customers. In the age of globalization this means that restriction to a single national market is not an option, least of all in the transport and logistics industry.”
Hartmut Mehdorn, chairman of Deutsche Bahn’s management board, reported that Deutsche Bahn’s acquisition of BAX Global will help maintain the company’s positive financial results in 2006.
“2006 is going to be another record year for Deutsche Bahn,” said Mehdorn. Deutsche Bahn’s revenue in the five months from January to May is up 18.8 percent to 11.95 billion euros ($15.3 billion), compared to 10.06 billion euros in the same five-month period last year.