Vossloh proposes AGM a record dividend of €1.70
- Dividend hike from €1.30 to €1.70 proposed
- Further takeovers announced
- Prospects for 2008 and 2009 reaffirmed
At this year’s annual general meeting in Düsseldorf, Vossloh AG’s Executive and Supervisory Boards will propose to the stockholders a dividend of €1.70, an increase of 31 percent over the year-earlier €1.30. This would be the highest-ever dividend paid out by Vossloh and constitute around 35 percent of group earnings.
Werner Andree, CEO of Vossloh AG commented: “In 2007, Vossloh delivered the best-ever performance in its corporate history. We want our stockholders to share commensurately. In future we also intend to distribute as dividend around one-third of group earnings. This is both attractive for the stockholders while still allowing us sufficient financial latitude for takeovers."
Outstanding stock market performance
Werner Andree continued: “Besides the dividend yield, our stockholders will also be pleased at the share prices. From December 31, 2006, to May 16, 2008, Vossloh stock has advanced by 69 percent, easily outpacing both the DAX and the MDAX."
Record results in 2007
In 2007, the Vossloh Group generated sales of €1,232.1 million, a rise of 21 percent over the previous year. EBIT climbed 47 percent to €121.5 million while group earnings at €71.4 million were more than treble the prior-year amount.
Further acquisitions planned
A good one-third of the added sales in 2007 was attributable to acquisitions while the lion’s share was derived from organic growth. In 2007, Vossloh closed altogether four M&A deals, continuing into the first quarter of 2008 with another two minor acquisitions. For the future, Vossloh likewise intends to buy up companies. Werner Andree: “We can shop for up to €400 million at any time without having to raise our capital. Potential candidates are, e.g., service providers and component manufacturers, usefully adding to our two divisions’ current product portfolios.”
Forecasts reaffirmed
Irrespective of any potential takeovers, Vossloh reaffirmed at the AGM its forecasts: for 2008, sales budgeted at €1.34 billion and EBIT at €142 million. For 2009, again vigorous growth and progressing profitability.
CEO Andree commenting on these bright prospects: "In these economically uncertain times, Vossloh's strengths become apparent. We can generally plan with greater certainty than businesses in other industries. Our customers are public and private transport operators that make long-term investment decisions, contracts not infrequently spanning several years."
Düsseldorf, May 21, 2008
Contact:
Uwe Jülichs
Head of Corporate Communication
Vossloh AG
Phone: +49 (0) 2392 52-608
Mobile: +49 (0) 172 2909852
Email: uwe.juelichs@ag.vossloh.com
Today's Vossloh is a global player in the rail technology markets. The Group focuses on its core businesses of rail infrastructure, rail vehicles, and trolleybuses. Reflecting this focus, Vossloh's two divisions of Rail Infrastructure and Motive Power & Components operate under the roof of MDAX-listed Vossloh AG. In fiscal 2007, a good 5,900 employees generated sales of over €1.2 billion and an EBIT of €121.5 million.