Vossloh raises sales guidance for full-year 2021, EBIT margin guidance confirmed
For the current fiscal year, Vossloh expects higher sales than previously anticipated. From today's perspective, the Group estimates sales of between €900 million and €950 million. The previous outlook was in a corridor between €850 million and €925 million. Improvements are expected in particular at the Fastening Systems business unit and Customized Modules division. In terms of profitability, Vossloh continues to anticipate an EBITDA margin of 13 to 14 percent and an EBIT margin of 7 to 8 percent for fiscal year 2021. The profitability guidance is confirmed despite expected significant burdens due to strongly increased material prices, which will impact negatively Vossloh's earnings especially in the second half of 2021. Compared to the previous year, this means a significant overall increase in operating profitability.
The outlook is supported in part by the strong business performance in the first half of 2021. Based on preliminary figures, Vossloh generated sales of €462.6 million (previous year: €393.2 million) and EBIT of €42.4 million (previous year: €30.1 million) in the six-month period. Accordingly, the EBIT margin was 9.2% (previous year: 7.6%) and the EBITDA margin 14.8% (previous year: 14.0%). It should be noted that the previous year's figures included a significant one-time book effect that was recognized in profit and loss resulting from the transitional consolidation of a company. On an operating basis, the increase in earnings and profitability was therefore even stronger. In particular this strong performance was due to higher sales at the Fastening Systems business unit. At the same time, the Customized Modules division significantly improved its profitability year on year.
The full figures for the first half of 2021 will be published with the interim report on July 28, 2021.
Vossloh is a globally active technology group dedicated for over 135 years to quality, safety, reliability, innovation and customer orientation. Vossloh’s comprehensive range of rail track-related products and services make the company a leader in the global market in this area. Vossloh provides a uniquely wide range of products and services: rail fastening systems, concrete ties, switch systems and crossings as well as innovative and increasingly digital-based services for the entire lifecycle of rails and turnouts. Vossloh uses its extensive understanding of rail infrastructure to meet the key customer need of track availability.
Vossloh products are in use in more than 85 countries. With roughly 80 Group companies in around 30 countries and over 35 production sites, Vossloh is a global company with a local presence. Vossloh is committed to sustainable corporate management and climate protection and makes an important contribution to sustainable mobility of passengers and goods with its products and services.
The Group activities are organized into the three divisions of Core Components, Customized Modules and Lifecycle Solutions. In the 2020 fiscal year, Vossloh achieved sales of about €870 million with approximately 3,500 employees.