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