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MÁV to close 2010 with HUF 40bn loss

State-owned railway company MÁV expects to close 2010 with losses of about HUF 40 billion, MÁV chairman-CEO Ferenc Szarvas said on Tuesday.

While MÁV racked up a HUF 43.1 billion loss from track and central services, its passenger unit MÁV-START is set to finish the year with a small profit of HUF 211 million. Machining unit MÁV Gépészet will generate a HUF 107 million profit and traction unit MÁV-Trakció will end the year HUF 1.64 billion in the black. MÁV received HUF 23 billion in budget payments in 2010. It is issuing HUF 10 billion in bonds — from which it hopes to have the proceeds before the holidays — to pay for investments necessary for its operation.

MÁV data shows MÁV-START received HUF 149.1 billion in budget support for its service rendered to the general public in 2010. Asked about MÁV's liabilities, Szarvas said HUF 180-190 billion of the company's stock of debt is working capital loans necessary because MÁV is underfinanced. Loans for assets account for the remaining HUF 100-110 billion. (MTI-Econews)