Deutsche Bahn today delivered its 2024 results, enjoying the “very favourable” €19.2bn revenue from DB Schenker for the last time.
Announcing a net loss (excluding Schenker’s results) after taxes of €1.8bn, an improvement on 2023’s €2.7bn loss, and revenues broadly flat, at €26.2bn, an embattled DB said it was facing a “serious crisis”, which would in part be alleviated by the sale of its forwarding arm.
“The sale of DB Schenker will reduce our indebtedness and interest burden. This will allow us to concentrate better on our core business of rail operations,” said DB CFO Levin Holle.
CEO Richard Lutz told media: “The decision to part with DB Schenker was the right one and necessary.”
The proceeds would be used to reduce debt and repay bonds reaching maturity this year, added the company.
Dr Holle said: “DB Schenker generated more than €1bn in adjusted ebit again in 2024, putting it slightly above budget. Proceeds from the upcoming sale of DB Schenker will remain entirely within DB Group and are to be used to reduce the indebtedness and interest burden. This will also have a positive impact on our debt coverage.”
DB is selling both Arriva and Schenker, which will shrink its portfolio of companies by more than 60%, the sale of DB Schenker including the sale of 200 additional companies to DSV.
Schenker CEO Jochen Thewes, meanwhile, said the company had “again delivered impressive results and demonstrated our ability to succeed, even in the face of challenging and complex times”.
Ebit was “steady” at €1.1bn, but there was no further detail. But he added: “Of course, none of this would be possible without the incredible efforts of our people.
“We are truly on the way to tomorrow in every sense of the phrase – in the way we conduct business, the solutions we provide to customers, and our even stronger future combined company set-up. Our successes – past, present, and future – will always be powered by our people.”
But one financial commentator said: “For all his joy, just 5.7% ebit margin is quite poor.”
DB Cargo, meanwhile, saw volumes fall.
It said: “The weak economy led to lower demand in energy-intensive manufacturing industries, such as automotive and steel, and lower demand for intermodal transport, which had a negative impact. DB Cargo carried about 180 million tons of freight in 2024, 9% less than in the previous year. Volume sold fell 7.9% to about 68.5m ton km. Revenues at DB Cargo were down 3.2% year on year.”
