DB Cargo is likely to miss the “black zero”
Deutsche Bahn's freight transport subsidiary will make losses again in 2024 due to depreciation in Great Britain.
Quick Look
- According to Cargo boss Bernhard Osburg, DB Cargo will miss the “black zero” required by the EU in 2024.
- The reason is around 260 million euros in loss write-offs at a British subsidiary.
- The company has to negotiate again with the EU.
AI-generated summary
Why It Matters
The EU Commission has imposed a restructuring course on DB Cargo in state aid proceedings in order to make profits again from 2026.
DB Cargo continues to fight for survival. According to its own information, the freight transport subsidiary of Deutsche Bahn will miss the “black zero” prescribed by the EU Commission this year and 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 told the dpa news agency. 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.
Renewed talks with the EU
The company must therefore enter into negotiations again with the European Union. 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.
Osburg wants to convince the EU 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.
What to Watch
AI outlook — possibilities, not facts
Renewed negotiations between DB Cargo and the EU Commission
Very likely · Within months
Open Questions
- How will the EU react to the renewed talks?
- When will the sale of the British subsidiary be completed?
