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Deutsche Bahn’s first half profit from logistics up 64%

Deutsche Bahn’s first half profit from logistics up 64%

   German state-owned rail operator Deutsche Bahn AG has raised its forecast for the full year 2006 following the successful integration of U.S. logistics firm BAX Global.

   DB Logistics, which controls Schenker and now BAX Global, posted first half operating profit of 174 million euros ($221 million), up 64.2 percent compared to the first six months 2005. Revenue at the logistics unit increased 45.1 percent to 6.3 billion euros ($8 billion), from 4.3 billion euros in the same period last year.

   Deutsche Bahn as a group posted first half net income of 491 million euros ($625 million), from 14 million euros last year. Operating profit doubled to 936 million euros ($1.2 billion) while group revenue improved 19.1 percent to 14.5 billion euros ($18.5 billion).

   “These outstanding results provide the economic foundation for an initial public offering. Building upon our successful track record, combined with additional investments, will enable us to continue the transformation of DB Group to a leading international mobility and logistics service provider,” said Hartmut Mehdorn, chief executive officer and chairman of Deutsche Bahn’s management board.

   Deutsche Bahn said that for 2006 it expects the inclusion of BAX Global to help increase its revenue to about 28.5 billion euros ($36.3 billion) with an operating profit of 1.9 billion euros ($2.4 billion), representing an improvement of approximately 300 million euros ($382 million) compared with the forecast published in March.