Today, DB Schenker parent, Deutsche Bahn AG, released its preliminary figures for the first half of 2019 that showed a large increase in net financial debt and capital expenditures, and mixed results among its subsidiaries, DB Schenker and DB Cargo.
DB’s net financial debt rose to US$18.3 billion (€25.4 billion) as of June 30, 2019, up from its US$21.7 billion (€19.5 billion) reported for Dec. 31, 2018. This increase in debt is due in large part to new accounting standards that all companies are now required to apply, stipulating that operating leases must be included in debt, according to the company. Were these new rules not to apply, DB said it would expect net financial debt to rise only slightly to US$22.3 billion (€20 billion) for the end of second quarter 2019.
International logistics group DB Schenker saw some growth in its revenue, putting the German transportation company 2.3% ahead compared to the same period in 2018. Adjusted earnings before income and tax (EBIT) for the company increased by 10.2% year-over-year for the first six months of the year.
Meanwhile, DB Cargo, the rail freight transport subsidiary of Deutsche Bahn AG, handled 43.7 billion tonnes of cargo in the first half of 2019, down by 1.8% y-o-y from the amount handled in 2018.
Looking forward, DB plans to continue investing in its business units, with a focus on its rail operations in Germany, said DB CFO Alexander Doll. As a result, net capital expenditure for the group was high for the first half of 2019 and will likely increase by more than US$6.13 billion (€5.5 billion) – the highest it has ever been in the history of the company – by the end of 2019, according to the company.Like This Post