Development in the year under review
- Restrictions, especially in Germany, due to continuing strain on transport quality (resource problems).
- Strikes in France had adverse effects on development.
- Positive business development in Eastern Europe.
DB Cargo | 2018 | 2017 | Change | 2016 | ||
absolute | % | |||||
Punctuality (%) | 72.8 | 72.7 | – | – | 75.6 | |
Customer satisfaction (SI) | 60 | 67 | – | – | – | |
Freight carried (million t) | 255.5 | 271.0 | – 15.5 | – 5.7 | 277.4 | |
Volume sold (million tkm) | 88,237 | 92,651 | – 4,414 | – 4.8 | 94,698 | |
Volume produced (million train-path km) | 165.8 | 175.6 | – 9.8 | – 5.6 | 179.1 | |
Capacity utilization (t per train) | 532.3 | 527.5 | +4.8 | +0.9 | 528.8 | |
Total revenues (€ million) | 4,460 | 4,528 | – 68 | – 1.5 | 4,560 | |
External revenues (€ million) | 4,177 | 4,209 | – 32 | – 0.8 | 4,230 | |
EBITDA adjusted (€ million) | 54 | 130 | – 76 | – 58.5 | 108 | |
EBIT adjusted (€ million) | – 190 | – 90 | – 100 | + 111 | –81 | |
EBIT margin (adjusted) (%) | – 4,3 | – 2,0 | – | – | –1.8 | |
Gross capital expenditures (€ million) | 587 | 328 | + 259 | + 79.0 | 304 | |
Employees as of Dec 31 (FTE) | 28,842 | 28,257 | + 585 | + 2.1 | 29,671 | |
Employee satisfaction (SI) | 3.5 | – | – | – | 3.4 | |
Employee satisfaction – follow-up workshop implementation rate (%) | – | 96.5 | – | – | – | |
Share of women in Germany as of Dec 31 (%) | 11.3 | 10.6 | – | – | 11.2 | |
Specific final energy consumption compared to 2006 (based on tkm) (%) | –20.4 | –17.1 | – | – | –17.1 | |
Quiet freight cars in Germany as of Dec 31 | 50,409 | 39,604 | +10,805 | +27.3 | 32,396 | |
Rail freight transport punctuality was at the previous year’s level. Improved punctuality, including in Great Britain and the Netherlands, compensated for a fall in punctuality in Germany caused by a heavily utilized infrastructure. At the same time, external interference once again had a negative effect on punctuality development in the year under review.
Customer satisfaction deteriorated significantly due to problems in reliability and punctuality. Since 2017 we have been surveying about 1,000 customers annually on customer satisfaction.
Performance development also noticeably declined. This was largely driven by Western Europe and Central Europe. The freight carried, volume sold and volume produced declined. By contrast, capacity utilization per train recorded slightly positive development.
The economic development remained tense. The decline in income, combined with slightly increased expenses, led to considerable declines in operating profit figures.
- 83% of revenues were generated in Central Europe, 12% in Western Europe and 5% in Eastern Europe. Revenues fell slightly, which was largely due to resource bottlenecks and strikes in France. Exchange rate effects also had a noticeable negative impact. There were positive accounting-related effects on revenues as a result of switching from the freight settlement procedure with foreign railways to a service procurement model.
- Other operating income (+ 15.1%) increased in particular due to train-path price support (opposite effect in revenues) and locomotive sales in Romania. The omission of the effect of the reimbursement of the nuclear fuel tax in the previous year had a dampening effect.
Expenses recorded a slight increase driven by personnel expenses:
- The cost of materials (– 0.2%) was below the previous year’s level, which was due to exchange rate and other effects. Lower train-path and energy expenses also had a moderating effect on the rise in purchased transport services.
- Personnel expenses (+ 2.2 %) increased as a result of collective bargaining agreements.
- Other operating expenses (+ 4.4%) increased, including due to higher expenses for vehicle rental and purchased IT services.
- Depreciation (+ 10.9%) increased, particularly due to capital expenditures and also as a result of IT project impairments.
Capital expenditure activities increased. Capital expenditures in Central Europe and Eastern Europe increased in particular as a result of higher capital expenditures in locomotives and freight cars. In contrast, capital expenditures fell in Western Europe.
A total of 66% of employees are employed in Central Europe, 15% in Western Europe and 14% in Eastern Europe. The number of employees in Central Europe and Western Europe increased. This was counteracted by a reduction in employees in Poland as a result of a decline in the sidings business and sand mining business.
Employee satisfaction improved as a result of positive developments in patterns of working hours and further development.
The share of women in Germany increased compared to the previous year.
The reduction of specific final energy consumption compared to 2006 has become more pronounced.
Region Central Europe
- Strained transport quality due to resource bottlenecks.
- Shortcomings in production quality leads to performance losses.
- The initial effects of the rail freight transport campaign.
| Central Europe region | 2018 | 2017 | Change | ||
absolute | % | ||||
Freight carried (million t) | 235.9 | 246.2 | – 10.3 | – 4.2 | |
Volume sold (million tkm) | 71,343 | 74,780 | – 3,437 | – 4.6 | |
Volume produced (million train-path km) | 134.0 | 140.9 | – 6.9 | – 4.9 | |
Total revenues (€ million) | 4,852 | 4,836 | + 16 | + 0.3 | |
External revenues (€ million) | 3,451 | 3,431 | + 20 | + 0.6 | |
EBITDA adjusted (€ million) | 75 | 160 | – 85 | – 53.1 | |
EBIT adjusted (€ million) | – 98 | 6 | – 104 | – | |
Gross capital expenditures (€ million) | 521 | 270 | + 251 | + 93.0 | |
Employees as of Dec 31 (FTE) | 18,991 | 18,494 | + 497 | + 2.7 | |
Performance development in Central Europe declined due to the effects of the strike in France and as a result of resource problems (staff and freight cars). By contrast, capacity utilization improved slightly.
The economic development was negative: the income increases were not sufficient to offset increased expenses and as a result operating profit figures fell significantly.
- Despite the decline in performance, there was slight revenue growth. This was as a result of the positive effects of switching from freight distribution to service procurement, among other factors.
- Other operating income (+ 23.1%) increased in particular due to train-path price support (opposite effect in revenues).
- The cost of materials (+ 3.2%) increased, mainly as a result of increases in purchased transport services. Lower expenses for energy as well as reduced expenses for train-path utilization due to price and quantity had a moderating effect.
- Personnel expenses (+ 2.8%) increased, despite a lower average number of employees, as a result of wage increases.
- The rise in other operating expenses (+ 7.2%) primarily resulted from higher levels of purchased IT services and damage compensation expenses.
- Depreciation (+ 11.7%) rose as a result of the impairment of IT projects and due to increased capital expenditures for locomotives and freight cars.
Gross capital expenditures increased significantly, in particular due to higher expenditures in locomotives and freight cars.
The number of employees increased particularly as a result of new hiring to meet the need for staffing in operational functional groups and due to employees being taken on as part of new business, including in Belgium and Italy.
Central Europe region
- Strikes in France put a strain on development.
- Portfolio adjustments in Great Britain.
- Restructuring measures in Great Britain and France move ahead.
Western Europe region | 2018 | 2017 | Change | ||
absolute | % | ||||
Freight carried (million t) | 48.5 | 55.4 | – 6.9 | – 12.5 | |
Volume sold (million tkm) | 11,910 | 13,255 | – 1,345 | – 10.1 | |
Volume produced (million train-path km) | 23.6 | 26.8 | – 3.2 | – 11.9 | |
Total revenues (€ million) | 640 | 668 | – 28 | – 4.2 | |
| External revenues (€ million) | 516 | 544 | – 28 | – 5.1 | |
EBITDA adjusted (€ million) | 48 | 41 | + 7 | + 17.1 | |
EBIT adjusted (€ million) | – 9 | – 12 | + 3 | – 25.0 | |
Gross capital expenditures (€ million) | 47 | 48 | – 1 | – 2.1 | |
Employees as of Dec 31 (FTE) | 4,365 | 4,207 | + 158 | + 3.8 | |
In Western Europe freight carried, volume sold and volume produced fell considerably. Negative development in Great Britain, including as a result of portfolio adjustments in the segments intermodal, biomass, coal and chemicals and within construction and defense, put additional strain on performance development.
The economic development was stronger than in the previous year: the fall in expenses was more than compensated for by reduced income, which meant that operating profit figures improved.
- Revenues declined for performance and exchange rate reasons, in particular due to negative developments in Great Britain.
- Other operating income (– 11.8%) declined, especially in Great Britain due to the loss of income from an investment transaction in the previous year and lost income from locomotive and freight car sales. Compensations for damage from SNCF to Euro Cargo Rail (ECR) as a result of strikes in France had a moderating effect.
- Cost of materials (– 8.0%) declined due to exchange rate effects and the reduced performance volume.
- Personnel expenses (– 5.9%) fell as a result of restructuring measures. This was offset by new hiring of operational personnel in Great Britain at year-end.
- Depreciation increased as a result of IT project impairments.
- Other operating expenses (– 6.5%) fell as a result of low rental expenses and the release of provisions in Great Britain. Exchange rate effects also had a negative impact.
Gross capital expenditures fell. This primarily resulted from the overhaul of locomotives in Great Britain and France.
The number of employees in operational roles and within machine-building and infrastructure increased, among other areas. The decline in locomotive drivers had a counteractive effect.
Eastern Europe region
- Performance development was largely positive.
- Adjustment to the transport portfolio in Poland.
- Increased personnel costs in Poland.
Eastern Europe region | 2018 | 2017 | Change | ||
absolute | % | ||||
Freight carried (million t) | 16.7 | 17.3 | – 0.6 | – 3.5 | |
Volume sold (million tkm) | 4,984 | 4,616 | + 368 | + 8.0 | |
Volume produced (million train-path km) | 8.1 | 8.0 | + 0.1 | + 1.3 | |
| Total revenues (€ million) | 309 | 314 | – 5 | – 1.6 | |
| External revenues (€ million) | 210 | 216 | – 6 | – 2.8 | |
EBITDA adjusted (€ million) | 25 | 21 | + 4 | + 19.0 | |
EBIT adjusted (€ million) | 11 | 8 | + 3 | + 37.5 | |
Gross capital expenditures (€ million) | 19 | 10 | + 9 | + 90.0 | |
Employees as of Dec 31 (FTE) | 3,914 | 4,076 | – 162 | – 4.0 | |
Performance development in Eastern Europe based on volume sold and volume produced showed positive development. By contrast, the freight carried fell including as a result of the lower traffic volumes in the logistics and intermodal divisions in Poland.
The economic development was weakened: the adjusted EBITDA and EBIT profit figures improved, particularly as a result of income from the sale of locomotives.
- Revenues declined, largely due to exchange rate effects. This development was strengthened by a performance-related decline in the sand mining business in Poland and the loss of transport services in China. Price effects had a moderating influence.
- Other operating income (+ 14.3%) increased, including as a result of locomotive sales in Romania and damage compensation payments in Poland.
- Cost of materials (– 8.7%) fell as a result of exchange rate effects, lower transport service purchases and lower maintenance expenses in Poland.
- Personnel expenses (+ 5.7%) rose due to wage increases, which were driven among other factors by a strained labor market and national minimum wage policy in Eastern Europe.
- Other operating expenses (+ 22.2%) increased. This was due to the costs of disposal incurred during locomotive sales in Romania, among other factors.
- Depreciation was at the previous year’s level.
Capital expenditures increased sharply. This was largely due to capital expenditures on maintenance facilities and locomotive projects.
The number of employees declined, particularly due to optimization measures in Poland. This was offset by an increase in the number of employees in Southeastern Europe.