Vossloh raises predictions and announces dividend hike
- Budget for 2008 much higher
- Forecasts for 2007 fully confirmed
- Dividend to be proposed at €1.70 per share
Vossloh AG is raising appreciably its budget for 2008. The Company is now budgeting sales in the region of €1,340 million (previously: €1,292 million), with an EBIT of around €142 million (up from €134 million) and group earnings of some €91 million (up from €79 million). These figures are equivalent to an EpS of €6.15 (up from €5.35), a growth of 35 percent versus the €4.54 anticipated for 2007.
Ongoing advances in 2009 combined with sustainable high profitability
For 2009, Vossloh expects further growth combined with sustainable high profitability. From today’s vantage point, sales and earnings will again rise, by around five percent; group earnings and EpS (assuming the tax load ratio to edge up) by about two percent. The Group would thus slightly surpass its self-set benchmark of a 10-percent EBIT margin in both 2008 and 2009. ROCE for 2008 has been budgeted at 17.9 percent and is set to inch up again for 2009, hence easily above the 15-percent benchmark. The enhanced profitability is the outcome of an improved product mix, productivity progress, and strict working capital management.
Growth markets outside of Europe
Regionally, China, the United States, Australia and India are the key drivers of the budgeted sales gain. In China, Vossloh in November 2007 commissioned a plant for producing rail fastening systems. In the United States and Australia, Vossloh this year acquired rail switch manufacturers and, in India, since 2004 the Group has been represented by a switch production joint venture.
Growth plans for all business units
According to present projections, both the Rail Infrastructure and Motive Power&Components divisions will share in the sales and earnings uptrend over the next two years. All five business units of the two divisions intend to step up sales and earnings versus the solid performance of 2007.
Achievement of 2007 forecast fully confirmed
When presenting its new plan figures, Vossloh confirmed that its forecasts for 2007 will be upheld in every respect. Accordingly, sales this fiscal year will amount to around €1,200 million. The latest projections predict an EBIT of around €118 million and group earnings in the region of €67 million, figures identical with the most recent forecasts of October 30, 2007. In the course of this year, Vossloh had twice revised upward its sales and earnings forecasts to reflect its commendable business performance and various acquisitions.
Sharp gain in EpS expected
Werner Andree, CEO of Vossloh AG, stated: “In particular, the EpS expected for 2008 and 2009 are well above our previous plan data. Vossloh's strength, however, I perceive not only in its profitability but also in our low vulnerability to economic cycles.”
Dividend proposal of €1.70 per share
Given the reaffirmed targets for 2007, Executive Board and Supervisory Board envisage proposing a dividend of €1.70 per share to the annual general meeting. This would be equivalent to a distribution of around 37 percent. For fiscal 2006, the stockholders had received a dividend of €1.30.
Werdohl, December 6, 2007
Contact:
Phoebe Kebbel
Hering Schuppener Consulting
Phone: (+49-69) 92 18 74 77
Mobile: (+49-173) 286 21 10
Email: pkebbel@heringschuppener.com