Vossloh proposes to AGM record dividend of €2 plus superdividend of €1
- Dividend increase from €1.70 to €2.00 proposed
- Additional superdividend of €1.00 from sale of Infrastructure Services proposed
- Budgets for 2009 and 2010 reaffirmed
At this year’s AGM in Düsseldorf, Vossloh AG’s Executive and Supervisory Boards are proposing a dividend of €2.00 per eligible share. This is equivalent to an increase of 18% over the prior-year €1.70, until then the highest dividend ever distributed by the Company. Additionally and if approved by the AGM, a one-time superdividend of €1.00 will be paid out in order to allow stockholders to share in the gain from the disposal of the Infrastructure Services business unit. In all, these payments correspond to the Company’s normal payout of 30% of group earnings.
Says Werner Andree, CEO of Vossloh AG: “Vossloh’s business model has a long-term perspective, aiming to steadily create shareholder value. Hence, our dividend policy continues to be pegged to earnings with the result that rising earnings will not only allow additional financial latitude for growth but also the corresponding dividend payouts.”
2008, a second record year running
For the second time in succession, Vossloh is able to report on a record period. During 2008, the Group generated sales of €1.21 billion and an EBIT of €137.7 million. The corresponding like-for like figures for the previous year were €1.02 billion and €111.1 million, respectively. Group earnings in 2008 added up to €139.4 million, this including an amount of €46.8 million from the gain derived from the sale of the discontinued Infrastructure Services operations. Even without this one-time effect, group earnings still rose significantly; from €62.9 million to €92.6 million, in each case excluding the result from discontinued operations.
Relatively solid stock price performance
In a difficult stock exchange year, Vossloh stock performed much better than the market. Closing the previous year at €80.10, it lost less than 1% over the 12 months, thus clearly outperforming both the DAX and MDAX. In fact, among all the MDAX players, Vossloh at year-end 2008 ranked #3 in terms of performance. And, in Q1/2009, it again proved a lot more resilient than the comparable indexes, closing the quarter at €79.89, a hike of 0.5% in the period January through March 2009. In this same quarter, the DAX lost around 15%, the MDAX, which includes Vossloh, even close to 21%.
Strategy for growth
Werner Andree went on: “We are firm believers in the future of railbound transport. Besides the risks from the current economic situation, Vossloh management does perceive considerable opportunities for future business. We have strengthened our sales organization and thus laid the foundations for seizing any exceptional and in some cases new market opportunities also outside of Europe. In order to bolster our market positions and grow further, outlays of around €60 million have been earmarked for each of the next two years. We are now targeting our investment on both existing and new locations and on the development of new products in an effort to actively seize the market opportunities certainly arising in future.”
Budgets reaffirmed
On the occasion of the AGM, Vossloh reaffirmed its budgets for the period ahead. Said CEO Werner Andree: “Vossloh management believes that moderate growth can be achieved despite the recession. This is based on the assumptions that demand in North America will pick up as the year proceeds and that there will be follow-up contracts from China in the second quarter of 2009.” For 2009 Vossloh is expecting sales to reach some €1.29 billion, with EBIT totaling €138 million; for 2010, the Company is looking to further sales and earnings growth. Regarding the impact of capital spending reluctance, Andree commented: “We observe on the part of our private-sector customers an extreme spending reluctance at present, particularly in freight haulage. We must brace ourselves for a drought ahead. This is especially relevant as far as our locomotives business is concerned since diesel locomotives are mainly used on freight haulage services which currently are battered by the recession. Success in excess of our expectations elsewhere in the Group should, however, offset this shortfall.”
Düsseldorf, May 20, 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.