Vossloh expecting moderate growth in 2010/2011
- ROCE and EBIT margin well above benchmarks
- High expenditures for buttressing and expanding market position
- Forecast for 2009 reaffirmed
For the next two years Vossloh AG is expecting moderate organic growth rates and a stable EBIT. Vossloh’s key performance indicators, ROCE and EBIT margin, are set to remain above the internal benchmarks, with net financial debt staying low.
For 2010/2011 Vossloh is assuming an overall sales uptrend. Only locomotive business will slow down due to declining freight haulage. The generally bright prospects allow Vossloh over the next two years to keep capital expenditures for buttressing and expanding market positions at a high level.
“Despite the much changed economic environment Vossloh is still able to generate organic growth. Rising demand for green modes of mobility on local and long-distance routes opens up promising prospects for us,” states Werner Andree, Vossloh AG’s CEO, adding “and as a rail technology group with a broadly based lineup, M&As will also be contributing toward Vossloh’s growth.”
When announcing the new budget and plan figures Vossloh has also reaffirmed its forecast for 2009 according to which sales will amount to around €1.2 billion, EBIT to some €138 million, and group earnings to €86 million.
Sales uptrend expected for 2010
For 2010, Vossloh is looking to sales of €1.23–€1.28 billion (forecast for 2009: €1.2 billion) and an EBIT at €135–€140 million. This would be in line with the high €138 million forecast for 2009. According to the present budget, Vossloh’s ROCE will top 19 percent in fiscal 2010 and hence will be well over the 15-percent benchmark. This year’s ROCE is predicted to reach 20.3 percent. Likewise above benchmark is the 2010 EBIT margin forecast, from today’s vantage point, of over 11 percent (internal benchmark: 10 percent). The margin for 2009 is predicted to come to 11.5 percent. Group earnings for 2010 are estimated to range from €81–€84 million.
2011: non-European sales gaining momentum
For fiscal 2011, too, Vossloh envisages an overall favorable sales trend and a stable EBIT. The Group will progress in its internationalization plans and by 2011, more vigorous growth outside of Europe is believed to further step up the share of non-European sales.
Budget and plan at a glance
Werdohl, December 3, 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.