May 23, 2012

SNCB Logistics edges towards profit

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THE latest figures from Belgian National Railways' freight subsidiary SNCB Logistics show the company achieved a reduction in its operating loss in its first year as an independent operator.

The implementation of cost-cutting measures, and a 3% rise in volumes to 41.1 million tonnes, helped the operator to end 2011 with a turnover of Euro 403.9m, Ebitda of Euro 34m, and a net loss of Euro 185m.

SNCB Logistics says the disparity between operating loss and net loss is explained by an asset value correction on its locomotives, wagons and terminals to bring them into line with their estimated market value, as well as provisions for uneconomic contracts.

SNCB Logistics says it is confident it will break even next year as it continues to streamline its operations. Operating losses halved in the first quarter of this year compared with the same period in 2011, while improvements in efficiency will allow redundant locomotives and wagons to be sold this year, strengthening the bottom line.

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