Vossloh planning to re-defy a tough market in 2006, too
Despite the still strained rail market situation, especially in Europe, and the sustained rise in raw material prices, the Vossloh Group expects to show slight increases in sales, EBIT, and group earnings in 2006. This was the message conveyed by Vossloh AG’s Executive Board on the occasion of the presentation of the annual accounts for fiscal 2005 in Düsseldorf.In fiscal 2005, sales advanced by 8.6 percent from €917.8 million to €996.4 million. One-time factors affecting general administrative expenses and the other financial results, combined with a lower net of other operating income/expenses, depressed EBIT from €105.6 million to €90.8 million. Group earnings fell from €57.2 million in 2004 to €45.1 million, equivalent to an EpS of €3.07 (down €3.91).
Total equity climbed from €331.1 million to €361.0 million in 2005, corresponding to an equity ratio of 33.1 percent (up from 32.6). The return on equity (ROE) amounted to 19.7 percent (down from 27.1) while the return on capital employed (ROCE) slid from 15.3 to 12.0 percent.
Vossloh’s Executive and Supervisory Boards will propose to the annual stockholders’ meeting to vote in favor of the distribution of an unchanged cash dividend of €1.30 per share for 2005. This would mean that around 42 percent of group earnings will be distributed (up from about 33 percent). Based on the year-end Vossloh stock price of €41.10, this represents a dividend yield of 3.2 percent.
At December 31, 2005, the Vossloh Group employed 4,729 people, hence 6.2 percent or 276 more than at the end of 2004. The larger workforce was mainly due to the Valencia-based diesel locomotive plant (Vossloh España) joining the consolidation group as of April 1, 2005.
Prospects for fiscal 2006
The figures originally budgeted for 2006 had envisaged a sharp rise in group sales to around €1.14 billion. This presupposed the inclusion of Pfleiderer Track Systems, whose acquisition had been targeted, with a 12-month contribution of €135 million (prior to consolidation effects of around €30 million). Then on December 21, 2005, the German Cartel Office announced that it would prohibit the takeover whereupon Pfleiderer AG decided in March 2006 to sell this business to a financial investor.
In its present composition, Vossloh is looking to sales of around €1,037 million for 2006 (up from €996.4 million in 2005). EBIT is seen to inch up from the 2005 level of €90.8 million to around €92 million. Group earnings for 2006 should amount to a good €47 million, equivalent to earnings per share of some €3.20 (up from €3.07). As to workforce numbers, 2006 is expected to show an average headcount of 5,114 (up from 4,732 in 2005), the surge being chiefly due to the first full-year inclusion of the Switch Systems business unit’s investees in India.
Werdohl/Düsseldorf, March 24, 2006
Full details on fiscal 2005
For more information contact
Christiane Konrad, Vossloh AG, phone: (+49-2392) 52-249