MÁV expects Ft 81 bln loss in 2005
Wednesday, November 9, 2005, 14:42
State-owned Hungarian railway company MÁV Rt expects losses of Ft 81 bln in 2005, far more than last year's losses of Ft 49 bln, because of higher energy, labor and financing costs, Napi Gazdaság reported. Next year, losses will be even higher, but they will not reach Ft 100 bln, CEO Gyula Gaál said yesterday. He added that MÁV saved an annual Ft 25 bln in 2004 and 2005 because of job cuts, but these also resulted in one-off costs of Ft 3 bln-4 bln in 2004 and Ft 7 bln-8 bln in 2005. MÁV has reduced its workforce from 55,000 in 2002 to under 50,000, lowering its payroll costs, which accounted for Ft 145 bln last year, or almost half of total costs.