Vossloh reaffirms annual forecast
- Three-quarter (3Q) 2009 sales down by 5.7% from year-earlier level
- Temporarily lower Chinese megaproject call orders depress Q3 figures
- 12-month 2009 forecast reaffirmed: sales of around €1.2 billion and EBIT of €138 million, both of the 2008 record magnitude
Within a hostile economic environment the Vossloh Group has so far this year delivered a respectable performance. Nine-month 2009 sales totaled €851.4 million, down €51.7 million or 5.7% from the year-earlier €903.1 million; during the same period EBIT amounted to €92.1 million, year-on-year down by €13.9 million or 13.1%.
Third-quarter (Q3) operations were partly overshadowed by passing clouds and in the final quarter Vossloh expects business to brighten. As a consequence, the Vossloh Group is reaffirming its forecast to date for all of 2009: sales of around €1.2 billion and an EBIT of €138 million—both at the prior-year record level.
Q3 sales by the Vossloh Group added up to €252.4 million, down by €59.8 million or 19.2% from the high year-earlier volume; during the same period EBIT receded from €39.8 million to €24.2 million.
Slipping Q3 group sales were chiefly due to lower quarterly revenue by the Fastening Systems business unit in China where sales generated by the local megaproj¬ects are contingent on irregularly placed call orders. A weak Q3/2009 compares with a very strong Q3/2008; for Q4 this year, Vossloh is expecting a steep resurgence of call orders.
Locomotives business suffered, moreover, from a significant shrinkage in global freight haulage, leading to appreciably less demand for diesel locomotives. In the course of the year to date, Vossloh had whittled down the existing order backlog and this has inevitably pared Q3/2009 sales.
“Even though a temporary lull in call orders from China and sluggish cargo haulage are reflected in our figures, we nonetheless expect to make good the loss by year-end and deliver a strong performance within a still hostile environment. So we are sticking to our 2009 forecast of sales at the record level of 2008,” states Werner Andree, CEO of Vossloh AG.
Nine-month group earnings reached €59.5 million; excluding the €42.6 million contribution from the discontinued operations of the former Infrastructure Services business unit, the year-earlier figure was €72.7 million. Compared with this latter, this year’s 3Q earnings are down by €13.2 million or 18.2%.
Rail Infrastructure
Three-quarter (3Q) sales by the Rail Infrastructure division amounted to €477.5 million, which is €36.8 million or 7.2% below the relatively high year-earlier €514.3 million. The main reason for the downturn was shrinking business at Vossloh Switch Systems so far this year. Vossloh Fastening Systems, in contrast, generated an increase in sales.
Third-quarter (Q3) revenue by this division totaled €154.5 million, year-on-year down by €36.3 million or 19.0% from €190.8 million mainly on account of lower Q3 sales by Vossloh Fastening Systems.
Motive Power&Components
Nine-month sales by the Motive Power&Components division slipped from €388.5 million to €373.6 million, a drop of €14.9 million or 3.8%. The shortfall was mainly due to weaker sales by the Locomotives business unit; Electrical Systems, in contrast, raised its sales.
Q3 sales by this division fell year-on-year by €23.3 million or 19.2%, from €121.2 million to €97.9 million this year. The prime reason was the performance of the Locomotive business unit.
Prospects
For all of 2009, the forecast of sales at the year-earlier level of around €1.2 billion and an EBIT of €138 million is reaffirmed. Budget details for 2010 and 2011 are presently being worked out and will be announced to the press, as well as to investors and analysts, on December 3. Expectations to date had been based on the assumption that the recession will continue this year and that as early as next, signs of a dynamic recovery would become visible. So far there have been no indications of this, but Vossloh is looking again to organic growth for 2010.
Key indicators at a glance
| Vossloh Group | 3Q/2009 | 3Q/2008 | Δ % | Q3/2009 | Q3/2008 | Δ % | |
|---|---|---|---|---|---|---|---|
| Sales | € mill. | 851.4 | 903.1 | (5.7) | 252.4 | 312.2 | (19.2) |
| EBIT | € mill. | 92,.1 | 106.0 | (13.1) | 24.2 | 39.8 | (39.2) |
| EBIT margin | % | 10.8 | 11.7 | - | 9.6 | 12.7 | - |
| ROCE | % | 18.5 | 22.4 | - | 14.1 | 24.2 | - |
| Value Added | € mill. | 37.4 | 53.8 | (30.5) | 5.4 | 21.7 | (75.1) |
| Group earnings* | € mill. | 59.5 | 115.3 | (48.4) | 14.6 | 69.0 | (78.8) |
* 2008 including profit from discontinued operations
Werdohl, October 28, 2009
Media contact:
Uwe Jülichs
Head of Corporate Communications
Vossloh AG
Phone: (+49-2392) 52-608
Mobile: (+49 172) 2909852
Email: uwe.juelichs@ag.vossloh.com
Investor contact:
Lucia Mathée
Head of Investor Relations
Vossloh AG
Phone: (+49-2392) 52-359
Email: investor.relations@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 electric buses. 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 2008, almost 4,700 employees generated sales of over €1.2 billion and an EBIT of €137.7 million.