Railway Insider - RZD lowers profit by 80%

RZD lowers profit by 80%

02-08-2010 11:27

According to official data announced by the company's president, Vladimir Yakunin, RZD's net profit in 2009 was of only 11 Billion roubles (EUR 264 Million).
The figure shows a 85.5% drop as compared to the 2008 profit.
“We can today say that the company has overcome a difficult 2009. We finished the year with profit at 11 billion roubles. This allows us to maintain the international ratings, which help raise funds and develop our investment program, as well as operations”.
Freight transport suffered a 15% drop, however, at a better level as compared to the drop expectations of 19%. This was possible also because of the state's support of 50 Billion roubles (EUR 1.2 Billion) for compensating tariff limits.
The company cut operational costs by 196 Billion roubles (EUR 4.7 Billion), 32 Billion (EUR 770 Million) of which came from salary reductions.

Source: www.interfax-news.com

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