Vossloh with a solid performance in 2009
- EBIT 2009 at prior-year record of €138 million
- Annual sales slightly down versus 2008
- Earnings per share rising like-for-like from €6.30 to €6.57
- Sales and EBIT forecasts raised for 2010 and 2011
Despite the economic and financial crisis, the Vossloh Group upheld its position well in fiscal 2009. Although sales inched down 3.2% to €1,173.7 million, EBIT at €137.9 million was a repeat of the prior-year record.
“We look back on a solid performance despite a market environment that for us, too, was tough. Our 2009 earnings were at the prior year’s top level. And in the new fiscal period we have set off to a promising start. In purchasing the Rail Services business unit, we have entered the attractive rail servicing and maintenance market, a step that strengthens our strategic market position,” states Vossloh AG’s CEO Werner Andree. “Our prospects for the years ahead are sound. Rail-bound transport remains an important economical and clean option for the movement of people and goods. And Vossloh is ideally positioned to seize for itself the opportunities offered by this promising market. We will expand, both organically and through M&A.”
In 2009 the Group again clearly outstripped its own benchmarks: ROCE (targeted at >15%) came to 20.5% (down from 21.8%), the EBIT margin (set at >10%) climbed to 11.7% (from 11.4%).
Group earnings added up to €87.9 million. Excluding the €46.8 million result from the discontinued and sold Infrastructure Services operations, the prior year’s group earnings had amounted to €92.6 million due to a lighter tax burden and lower minority interests. So, compared with the like-for-like 2008 figure, group earnings moved down 5.1%. Earnings per share from continuing operations rose 4.3% from €6.30 to €6.57, mainly because of the lower number of shares outstanding in the wake of treasury stock repurchase.
Rail Infrastructure division
Rail Infrastructure showed sales of €690.3 million, a 2.4% decline. EBIT, in contrast, mounted 10.2% to €125.0 million chiefly thanks to lower procurement prices.
The Fastening Systems business unit contributed sales of €267.1 million, an extra 4.8% over the already high figure for 2008. The leap was solely due to increased revenue in Asia where, once again, China was the unit’s biggest national market, with sales there jumping 23.1% to €105.9 million.
The high volume of sales in China was also attributable to another megacontract awarded in summer 2009 for the supply of rail fasteners destined for the high-speed Beijing–Shanghai line. Work on this contract started as early as 2009.
At €424.9 million, sales at the Switch Systems business unit were 6.3% short of the 2008 record, largely due to weaker business in North and Central America. Freight haulage, the main business of the big US network operators, was especially battered by the recession and hence there was less demand for switches and trading products. In the Central American metro market, project delays meant reduced revenue.
Motive Power&Components division
Motive Power&Components generated sales of €483.2 million in 2009, which is 4.3% down from 2008. Its EBIT dropped 16.8% to €35.2 million.
Sales of €336.2 million at the Locomotives business unit fell by 10.4%; whereas the Valencia location only just missed the prior year’s figure the Kiel plant reported much weaker revenue. Given the poor demand for freight haulage diesel locomotives, sales at Kiel slumped 23.3%. Vossloh España SA in contrast benefited from a broader product range and generated some 40% of its €215.3 million sales with (sub)urban trains.
The Electrical Systems business unit raised its sales clearly by 14.4% to €148.5 million. Growth driver was demand for electrical kits installed into trams and light rail vehicles (LRV), business being equally strong in Germany and abroad. A contract awarded 2009 in Houston, USA, will serve as another outstanding reference. For its five light rail services, Metro Houston has ordered another 103 low-floor vehicles. Just as the vehicles themselves, the traction equipment to be supplied by Vossloh Kiepe will be built in the USA. The shipment of vehicles to Metro Houston is scheduled for the period from April 2012 to summer 2014.
Proposed annual dividend at prior-year record level
Vossloh AG’s Executive and Supervisory Boards will propose to the annual general meeting a dividend of €2.00 per eligible share of stock, equivalent to 30.3% of group earnings. The previous year’s dividend had also been at this record level, plus a €1.00 superdividend from the gain on the Infrastructure Services divestment.
Headcount stable
At year-end 2009, the Vossloh Group had a worldwide workforce of 4,708, year-on-year up 0.5%. Of the total, 1,331 were employed in Germany.
Prospects
After the acquisition of the new Rail Services business unit had been closed in early 2010 and in view of the business situation this year, the budget figures require a revision. Vossloh now expects sales this year to rise between 11% and 15% to €1.3+ billion (budgeted to date: €1.23 billion to €1.28 billion). EBIT is set to advance by 5% to 7% to €145+ million (previously, €135 million to €140 million).
EpS will then amount to €6.50 to €7.00 (previous budget €6.10 to €6.30) while ROCE is likely to slip to around 17% (previously, 19%+) mainly due to the first-time consolidation of Vossloh Rail Services. From today’s vantage point, the EBIT margin for 2010 will range between 11% and 11.5% (previously, 11%+).
For 2011, Vossloh is counting on a sales growth of at least 2.5% and an EBIT of about €150 million; ROCE is expected to rise to around 18%, the EBIT margin remaining at 11% to 11.5%.
Vossloh will push ahead with its capex program for strengthening market positions and generating growth. To this end, €60 million has been earmarked for outlays in both 2010 and 2011.
Key indicators at a glance
| Vossloh Group | 2009 | 2008 | Δ % | Q4/2009 | Q4/2008 | Δ % | |
|---|---|---|---|---|---|---|---|
| Sales | € mill. | 1,173.7 | 1,212.7 | –3.2 | 322.3 | 309.6 | +4.1 |
| EBIT | € mill. | 137.9 | 137.7 | +0.1 | 45.8 | 31.7 | +44.5 |
| EBIT margin | % | 11.7 | 11.4 | – | 14.2 | 10.2 | – |
| ROCE | % | 20.5 | 21.8 | – | |||
| Value added | € mill. | 63.7 | 68.2 | –6.6 | 26.3 | 14.4 | +82.6 |
| Group earnings | € mill. | 87.9 | 92.6* | –5.1* | 28.4 | 19.9* | +42.7* |
| EpS | € | 6.57 | 6.30* | +4.3* |
* LFL, excluding result from discontinued operations
Werdohl, March 25, 2010
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 2009, a good 4,700 employees generated sales of over €1.17 billion and an EBIT of €137.9 million.
Division and business unit names have been slightly revised for the purpose of closer alignment with terms customary in the industry. Motive Power&Components as a division has been renamed Transportation, the Locomotives business unit is now called Transportation Systems. After the latest acquisition, the Rail Infrastructure division has a third business unit, Vossloh Rail Services.