Deutsche Bahn: Where did the billions in loss come from?

display

It had been clear for months that the numbers that Bahn boss Richard Lutz had to present on Thursday would not look good.

Since the beginning of the corona pandemic, hardly any people have boarded the trains of the Deutsche Bahn (DB), but the Deutsche Bahn (DB) still largely maintained the offer - also at the request of the federal government.

That cost the state company billions.

But how many billions it is now that are accounted for by the virus catastrophe in the Deutsche Bahn boss's balance sheet is highly controversial.

The hard numbers have been clear since Thursday: DB made a loss of 5.7 billion euros last year, and in 2019 there was a small profit of 680 million euros.

Source: WORLD infographic

display

But even a first look at the sales development shows that the cause cannot be Corona alone.

Because while the result was almost 6.4 billion euros lower than in 2019, sales shrank less sharply by 4.5 billion to only 39.9 billion euros.

The fact that the railway's revenues only fell by a good ten percent, while the number of long-distance passengers fell drastically by more than 47 percent to only 81.3 million passengers, is due, on the one hand, to the fact that, despite the lockdowns, many customers did not cancel their rail cards .

On the other hand, the freight transport and logistics business, including those of the DB Schenker subsidiary, did significantly better than passenger transport.

“2020 was not a lost year for the railway,” said Lutz.

They have invested in infrastructure and trains.

"Despite Corona, we made progress." Despite the difficult financial situation of the group, the rail boss should remain behind the wheel in the coming years.

Their contracts were already extended on Wednesday: Railway boss Richard Lutz (center) with his board colleagues Berthold Huber (left) and Ronald Pofalla

Source: dpa

display

On Wednesday, the supervisory board not only extended its contract to 2027, but also the infrastructure director Ronald Pofalla and passenger transport manager Berthold Huber are allowed to stay.

These personnel decisions were by no means undisputed.

This also contributed to the fact that the board members would actually have wanted a ten percent increase in salary.

However, the Supervisory Board postponed this issue after the plans became known.

Lutz reacted tightly to questions on the subject.

It would hardly have been possible to convey if the top management had been given a clear plus, while the majority of employees had to be satisfied with a modest wage increase of only 1.5 percent from 2022.

The railway and transport union (EVG) had approved the collective agreement in order to make a contribution to the crisis management.

display

The train drivers' union GDL, on the other hand, refused to negotiate, it is demanding 4.8 percent more money and is heading for a tough wage conflict with the railways.

Lutz described the GDL demands as "completely illusory even in boom times".

The DB Group is supposed to cover half of the pandemic costs itself through savings, while the federal government as owner wants to offset the other half.

But that brings the question of the actual costs of the corona crisis into focus.

The Bahn Management Board has an interest in blaming the pandemic for all financial losses.

In addition to the operating loss, Corona was also responsible for the depreciation of 1.4 billion euros on the foreign subsidiary Arriva.

The originally planned sale of Arriva had failed.

The virus also led to a break-in in the countries in which the daughter is active, argues CFO Levin Holle.

All in all, the corona damage is over six billion euros - last year alone.

And for 2021 too, DB expects an operating loss of around two billion euros due to the pandemic.

However, the damage calculated by the board is well above the Federal Network Agency's estimates, which only assume follow-up costs of 2.4 billion euros - for the entire railway sector, not just DB.

Holle referred to “methodological differences” in the calculation, according to the Federal Network Agency's statement based on half-yearly figures, since then the situation has continued to deteriorate.

In addition, unlike DB, the authority does not include damage to European freight traffic, regional bus traffic and lower rental income in train stations.

The amount of corona damage decides on federal aid

The amount of the corona costs is also decisive because the approval of the EU Commission for the planned federal aid payments for the railways depend on it.

The state actually wants to support its company not only with eleven billion euros from the climate package, but also with another five billion euros for the pandemic costs.

display

But negotiations with Brussels have not been concluded for months.

The Commission wants to ensure that the aid does not distort competition.

Numerous possible requirements are under discussion.

Holle referred to "intensive talks" about the exact requirements that DB would have to expect if he did not want to speculate.

It is clear that the railway urgently needs fresh money.

Equity halved last year.

Not only through the loss, but also through a revaluation of the pensions, which meant a minus of over one billion euros, and through the dividend of 650 million euros to the state, which the group paid out despite the crisis.

This creates the bizarre situation that DB needs billions from the state on the one hand, but transfers 650 million euros back to the budget on the other.

As long as there is no approval from Brussels, the railways' debts continue to rise.

They are now well over 30 billion euros, which is why the Bundestag has already raised the credit limit that is actually in effect twice.

Expansion of WLAN in IC trains is delayed

If the Bahn's board of directors has their way, the company should at least be in the black again in 2022.

But there are serious doubts about that.

“I'm not as confident as the DB board.

I believe that the process will take much longer until the railway is back in the profit zone, "said Vice Chairman of the Supervisory Board and EVG Chairman Klaus-Dieter Hommel:" To make a profit again in 2022 is very, very optimistic I do not share ”.

In contrast to management, he also fears the long-term consequences of the pandemic.

"It is noticeable that the mobility behavior in passenger transport is changing permanently," said Hommel.

He does not believe that business trips will return to pre-Corona levels.

"We have to act actively and not reactively. We have therefore requested and resolved to hold an extraordinary meeting of the supervisory board that will deal with these issues."

Incidentally, Deutsche Bahn is not only feeling the consequences of the coronavirus in the balance sheet, passengers are also experiencing direct effects: the expansion of WiFi in IC trains has been delayed by the pandemic.

External technicians were actually supposed to equip the trains accordingly, but the railways preferred not to let them into the workshops.

One could not have risked a wave of infections in these companies.

“Everything on stocks

”

is the daily stock market shot from the WELT business editorial team.

Every morning from 7 a.m. with the financial journalists from WELT.

For stock market experts and beginners.

Subscribe to the podcast on Spotify, Apple Podcast, Amazon Music and Deezer.

Or directly via RSS feed.