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Business

Multi-million profit start sets DSB on track for 2014

admin
May 14th, 2014


This article is more than 10 years old.

Rail operator reports strong first quarter results

DSB has reported pre-tax profits of 144 million kroner for the first quarter of 2014, representing a 140 million improvement on the same period last year. This follows a healthy end to 2013 for the national rail operator.

“The positive development in the profit before tax is a result of the implemented efficiency enhancements combined with an increase in passenger revenues,” the review of the company’s first quarter report states.

“Also reduced net financials – i.e as a consequence of an improved result of operations in Rejsekort A/S and fewer interest-bearing liabilities – contributed to this development.”

Efficiency means job cuts
The ‘efficiency enhancements’ in question include  extensive job cuts. Some 881 employees were laid off in 2013, and the company plans further cuts in 2014.

"The board has a strong focus on the two overall objectives within ‘A healthy DSB’,” Peter Schütze, the chairman of DSB, stated in his comments accompanying the Q1 report. “At year-end 2014, EBITDA of 2.65 billion kroner and 1,000 fewer employees in the Danish activities.”

Future focus
Since the EBITDA amounted to 746 million kroner for the first quarter, the company is on target to attain its EBITDA target.

While DSB’s recent focus has been on economising, the future aim is to improve other aspects of the business.

“While the issue so far has been restoring DSB’s economy, the next stop on our strategic journey will be continuing to focus on the core product while at the same time improving productivity by 2-3 percent every year,” the report states.


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Moreover, 21 percent of those surveyed admitted to medicating their kids with paracetamol, such as Panodil, before sending them to school.

The FOLA parents’ organisation is shocked by the findings.

“I think it is absolutely crazy. It simply cannot be that a child goes to school sick and plays with lots of other children. Then we are faced with the fact that they will infect the whole institution,” said FOLA chair Signe Nielsen.

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At the Børnehuset daycare institution in Silkeborg a meeting was called where parents were implored not to bring their sick children to school.

At Børnehuset there are fears that parents prefer to pack their kids off with a pill without informing teachers.

“We occasionally have children who that they have had a pill for breakfast,” said headteacher Susanne Bødker. “You might think that it is a Panodil more than a vitamin pill, if it is a child who has just been sick, for example.”

Parents sick and tired
Parents, when confronted, often cite pressure at work as a reason for not being able to stay at home with their children.

Many declare that they simply cannot take another day off, as they are afraid of being fired.

Allan Randrup Thomsen, a professor of virology at KU, has heavily criticised the parents’ actions, describing the current situation as a “vicious circle”.

“It promotes the spread of viruses, and it adds momentum to a cycle where parents are pressured by high levels of sick-leave. If they then choose to send the children to daycare while they are still recovering, they keep the epidemic going in daycares, and this in turn puts a greater burden on the parents.”