OBB chief sees smaller than expected loss at Rail Cargo Hungaria - paper

Deals

Austrian railway company ÖBB expects its Hungarian freight unit Rail Cargo Hungaria (RCH) to close 2011 with a smaller than expected loss, ÖBB CEO Christian Kern told Austrian business daily Wirtschaftsblatt.

ÖBB expects RCH to close 2011 with a €10-12m loss, well under the €67m loss in 2010, Kern said. RCH could become profitable in 2013, he added.

"Our relationships with trade unions and state bodies in Hungary are developing favorably and this could soon be embodied in deeper cooperation agreements," Kern said.

RCH's reorganization is progressing well, he said.

Kern would not confirm reports RCH plans a further 400 layoffs over two years, but said payroll costs would be cut and the areas of IT and administration restructured.

ÖBB has cut 800 jobs at RCH since it bought the company in 2008, including 600 layoffs this year.

RCH controls about 80% of Hungary's rail freight market.

ADVERTISEMENT

Almost half of Hungarians get fringe benefits, survey shows Analysis

Almost half of Hungarians get fringe benefits, survey shows

19,000 young jobseekers hired in expanded subsidy program Government

19,000 young jobseekers hired in expanded subsidy program

Healthcare Roadshow Highlights Innovation, Screening Awarene... Interview

Healthcare Roadshow Highlights Innovation, Screening Awarene...

Zsa Zsa Gabor's ashes buried in Budapest City

Zsa Zsa Gabor's ashes buried in Budapest

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.