German Rail Turns First Profit in a Decade

The German railway company, Deutsche Bahn, has reported that it has reached the profit zone after more than 10 years in the red. The company reported that after-tax profits in 2004 reached €250 million ($335 million), some €420 million over 2003 results. The figures are under the initial forecast of €300 million, but over later forecasts of €200 million. "In light of the sluggish economy and intense competition, the company can put 2004 down as a success," said Michael Frenzel, chairman of the supervisory board. Hartmut Mehdorn, Deutsche Bahn head, said the good results are an important stepping stone toward taking the company public. The company unveiled a plan in 2001 in which the company promised to return to profitability by 2004. In this case, the train ran on time.