Business News

Rail Operator Halves Loss in First 4 Months

Ljubljana, 14 June (STA) - Railway operator Slovenske zeleznice generated a net loss of EUR 8.33m in the first four months of 2010, down on almost EUR 16m in the same period last year. The supervisors noted on Monday the results that are much better than planned and as such very encouraging.

The operating loss in the same period fell from last year's EUR 14.5m to EUR 4.42m, the supervisory board of Slovenske zeleznice said in a press release.

The operating loss in the first four months is EUR 3.28m lower than planned, mainly due to better-than-expected results in cargo traffic and infrastructure, while the net loss is EUR 1.88m lower than planned.

The supervisors said the results would have been even better had it not been for a EUR 1.8m loss incurred from the appreciation of the Swiss franc agains the euro.

Freight trains transported 16% more cargo year-on-year in the first four months of 2010 and made 13.7% more net ton kilometres. Operating revenues from cargo traffic was up 20.9% year-on-year and 9% above plans.

Passenger traffic remained on the same level as in the comparable period last year, while the distance travelled fell by 1.1% year-on-year. Operating revenues from passenger traffic was 9.3% higher year-on-year, but fell short of plans by 2.2%.

Nevertheless, the supervisory board pointed out that, despite the improvement, Slovenske zeleznice still needs to carry out restructuring and other measures to achieve long-term profitability.

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