Lithuanian Railways turn profitable following major management reshuffle

VILNIUS, Dec.18 (Xinhua) -- Lithuanian state-controlled railway company announced on Monday its financial results after one year of major management and strategic reshuffling.

In January-November, Lithuanian Railways earned profit of 11.9 million euros, compared to a loss of 1.8 million euros in the same period last year. The company's revenue grew by 9.7 percent, to 402.5 million euros. Cargo transportation increased by 9.4 percent, to 47.7 million tons of cargo.

"For the first year, we've set the goal to bring together a strong team, start working transparently and get back to profitable operations. We've achieved these goals and advanced even further," Mantas Bartuska, 33 year-old chief executive of Lithuanian railways, was quoted in the company's announcement.

Bartuska took the helm at the company following the resignation of its former chief executive Stasys Dailydka and other top managers amid corruption scandals. The previous management is also blamed for breaching the European Union's competition rules which led to 28 million euros fine from the European Commission (EC). Lithuanian Railways is to appeal the fine at the EU's General Court in order to reduce the financial burden.

After the major management reshuffle in Lithuanian Railways last December, the company has implemented structural changes that have cut the workforce by 1,500. Currently, almost 7,700 people work at the company. Layoffs had led to increased costs due to redundancy payments, said Lithuanian Railways. (1 euro = 1.18 U.S. dollars) Enditem