The Russian Railways group of companies said Tuesday it had “almost doubled its net profit according to International Financial Reporting Standards, year-on-year, to reach 152.2 billion rubles,” or roughly $5 billion, in 2009.
Russian Railways’ consolidated financial reporting according to IFRS takes into account the results of all subsidiaries and associated companies in the holding, a total of more than 170 companies.
Revenue from freight fell 6% to about $27.3 billion, but revenue from passenger services rose 3% to reach about $5.5 billion. Total revenue declined by 4% to roughly $36.8 billion.
Said Russian Railways Senior Vice President Vadim Mikhailov, “The year 2009 proved to be a resilience test for Russian Railways. Due to the decline in freight, earnings fell slightly. The company’s management took steps to cut expenditure, and these measures produced the intended positive result .By the end of the year, the group managed to substantially reduce the size of its operational spending by 8.2%.”