German Rail: Heavy profit slump, fell by 39 percent – SPIEGEL ONLINE

The German railway has suffered a drop in profits for the first half 2015. The result after tax decreased from EUR 642 million in the same period last year to EUR 391 million, a decline of more than 39 percent.

As the state-owned company announced, sales from January to June increased by 1.3 percent to 20 billion euros. CEO Rüdiger Grube led the weak result back to several storms and the train drivers strike.

The companies were “important revenue” escaped through the “largest and most momentous wage dispute” in the history of the web, so pit. By the strikes lacked alone as a result of the first half of 2015, more than 250 million euros, he said. The members of the German train drivers union (GDL) had, between September 2014 and May 2015 a total of nine times strike, at first long only for a few hours, but then several days. On July 1, the two sides finally agreed to a collective agreement.

Grube had submitted to the Supervisory Board on Monday a six-point plan for restructuring of the Group to respond to the difficulties in several business segments. The Supervisory Board of Deutsche Bahn agreed to the structural and personnel changes in the Group.

Ronald Pofalla rises accordingly in August by the chief lobbyists for a board member of the train on. He is responsible for the areas of law, adherence to the rules, Data Protection and Corporate Security. In addition, the Board moves on the current long-distance leader Berthold Huber, who takes care of the passenger and freight railway. Overall, the board shrinks from eight to six members.

Downsizing possible

Because of the bad numbers do not include the path from job cuts. His concrete ideas for he intended to submit to the Supervisory Board on 16 December, announced CEO Grube. The railway has approximately 196,000 employees one of the largest employers in Germany. Abroad, it has over 100,000 employees.

The highly indebted German Railways also wants to tap the capital market in the second half. About bonds are 1.5 to 1.6 billion euros to be taken, as Chief Financial Officer Richard Lutz at the half-year press conference. Depending on the situation on the capital market could at the end of even more money to be added.