Vossloh maintaining momentum
Sharp surge in 4-month sales and earnings - According to CEO Eschenröder at the stockholders' meeting: 2006 a period of transitionThe Vossloh Group is maintaining its momentum in 2006: From January through April sales advanced 15.9 percent versus the year-earlier period to €298.2 million. Even adjusted for acquisitions, this rail technology specialist thus posted an increase of around 4 percent in what is still a difficult market environment. Although the Group’s EBIT slipped slightly by €1.1 million to €15.3 million, group earnings were up by 16.4 percent to €6.4 million, thanks to a lower net interest expense and the absence of burdens from discontinued operations.
"Even though not all units have come up to expectations in April, we still expect business to better over the remaining months," stated CEO Gerhard Eschenröder at the stockholders' meeting held in Düsseldorf on Wednesday. This year Vossloh Group sales are budgeted to rise from €996.4 million in 2005 to just under €1.04 billion, thus topping the billion euro mark for the first time ever. "In view of the encouraging trend so far this year, we see no reason to depart from this prediction," added Eschenröder.
In the past months the Vossloh Group again booked numerous attractive contracts. The French Seco-Rail ordered from Vossloh Locomotives in Kiel 20 G1206 units for use in heavy-duty marshalling and regular service operations. Worth a total €39 million, this is the first contract placed with Vossloh by Seco-Rail. The originally budgeted annual production of a good 50 units for Kiel is therefore assumed to be clearly exceeded.
Following the thwarted takeover in March of Pfleiderer Track Systems and an alternative option for fortifying its permanent-way products with the addition of sleepers, Vossloh is currently reviewing together with an associate the possibility of setting up its own production facilities in key international markets. The groundwork for this project is being prepared and a decision is expected in the months ahead.
The announced review of the Group’s strategic position started up a few weeks ago. Additionally, the Executive Board has launched a cost management program. Both are designed to strengthen on a sustained basis Vossloh’s competitiveness. Detailed results will be available is early fall. But even now it is evident that "the Vossloh Group’s potential of profitable growth even under difficult market conditions is far from exhausted," emphasized CEO Eschenröder in the presence of the stockholders, adding that 2006 was a year of transition and that at the end of the process Vossloh would stand stronger than ever before.
Werdohl, May 24, 2006
Contact:
Christiane Konrad, Vossloh AG, phone: (+49-2392) 52-249
Email: christiane.konrad@ag.vossloh.com
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