AGM 2010: Vossloh reaffirms forecast
At today’s annual general meeting in Düsseldorf, Vossloh reaffirmed its forecasts for 2010 and 2011. Accordingly, Vossloh still expects sales in fiscal 2010 to advance 11 to 15 percent and total over €1.3 billion. EBIT should climb 5 to 7 percent to over €145 million.From today’s viewpoint, earnings per share for 2010 should reach €6.50 to €7.00. ROCE will edge down to around 17 percent, largely in the wake of the first-time consolidation of the Rail Services business unit. The EBIT margin is predicted at 11 to 11.5 percent.
For next year, 2011, Vossloh expects a minimum sales rise of 2.5 percent and an EBIT of around €150 million. ROCE should climb to around 18 percent and the EBIT margin remain at between 11 to 11.5 percent. All these plan figures are based solely on the envisaged organic growth.
Consistently seizing international growth opportunities
In addition, Vossloh is earmarking for 2010 and 2011 each capital expenditures of over €60 million. “We will continue to invest in our assets. We intend to further strengthen our market position and accelerate our growth,” stated Werner Andree, CEO of Vossloh AG. Growth opportunities, he said, have primarily been identified in promising markets, such as Asia, the United States, North Africa, and the Near & Middle East. “As a broadly positioned rail technology group we command a strong global market presence backed by well-established products. We have the best prerequisites for consistently seizing the growth opportunities offered by our market.”
Proposed annual dividend at prior year’s record level
At the AGM, the Executive and Supervisory Boards of Vossloh AG proposed to the stockholders a dividend of €2.00 per eligible share of stock. Hence, the dividend is again at the prior year’s record level. Measured against group earnings, the payout is equivalent to 30.3 percent.
“Despite an environment that was anything but congenial, we delivered a solid performance in 2009, one in which we want our stockholders to share commensurately,” stated Werner Andree. Despite the economic and financial crisis, the Vossloh Group upheld its position well in fiscal 2009. Although sales inched down 3.2 percent to €1,173.7 million, EBIT was again at the prior year’s record level, in fact slightly superior at €137.9 million. The EBIT margin climbed to 11.7 percent, from 11.4 in 2008.
Strategic market position strengthened with new Rail Services business unit
Additionally, Vossloh again strengthened its strategic market position in fiscal 2009. In December a share deal was signed covering the acquisition of the new Rail Services business unit which secures the Group access into the attractive rail welding and maintenance market. The deal was formally closed in February 2010.
In acquiring this unit, which is a foremost and profitable player in the German market, Vossloh has bolstered its core rail infrastructure business. The Vossloh Group, which focuses on attractive rail technology segments, intends in its core businesses to grow at a rate at least equal to the overall rail technology market and, in terms of profitability, to outperform this market as such.
Düsseldorf, May 19, 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 Transportation (previously “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.