DB Cargo misses profit targets: renegotiations with EU Commission necessary

According to its own statements, the ailing rail freight transport subsidiary DB Cargo will miss the "black zero" prescribed by the EU Commission this year - meaning it will continue to make losses. The reason for this is one-off loss write-offs at a British subsidiary that is up for sale, as Cargo boss Bernhard Osburg said. The resulting value adjustments of around 260 million euros had a negative impact on the freight transport group's earnings, according to company circles. It is therefore unlikely that a black zero will be achieved this year.

The company must therefore enter into negotiations with the EU again. The Commission had imposed a comprehensive restructuring course on the group in a so-called state aid procedure with the aim of returning to profitability from 2026. The current restructuring concept includes, among other things, the reduction of around 6,200 of the approximately 14,000 full-time positions in Germany. Cargo boss Bernhard Osburg is also planning a stronger focus on European transport.

But this process in particular is now causing delays. Osburg emphasized that the restructuring concept that had previously focused on Germany must now be expanded to include the entire European business with a total of 16 foreign subsidiaries. An intensive look is being taken at which of these companies are essential for the implementation of the European strategy.

Osburg wants to convince the EU Commission that the restructuring within Germany is on the right track. Without the depreciation at the English subsidiary, the company would have reached black zero this year, he emphasized. Last year, earnings after taxes and interest (EBIT) were just shy of the target at minus 58 million euros.