04/30/2015
Vossloh has started well in financial year 2015 following the incisive events of 2014
- Group sales in the first quarter increased by 8.7 percent to nearly 320 million Euro
- Turnaround achieved: EBIT at 1.0 million Euro
- Guidance fully confirmed
- Order in China worth 70 million Euro won in April
In the first three months of 2015, sales for the Vossloh Group increased by 8.7 percent to €319.8 million. With strong growth in non-European markets, the share of Group sales from outside of Europe reached 42.5 percent (previous year: 34.9 percent). Earnings before interest and income taxes (EBIT) of the Group amounted to €1.0 million in the first quarter. The decrease compared to the prior year figure of €6.5 million was for the most part attributable to a lower EBIT in the Core Components division as well as a slightly expanded loss compared to the prior year amount in the Transportation division. Business development was in line with expectations.
In the Core Components division, which brings together the offerings in high-volume industrially-manufactured products, sales in the first quarter fell sligthly to €66.2 million (previous year: €70.9 million). EBIT in the division totaled €6.4 million. The EBIT margin declined in the first quarter of 2015 to 9.6 percent from comparable 15.5 percent in the first quarter of 2014.
The Customized Modules division includes all of the Group's services related to the production, installation and maintenance of individualized infrastructure modules. The product portfolio includes switches as well as control and monitoring systems that are offered throughout the world. In the first quarter of 2015, the division generated sales of €115.9 million. This corresponds to an increase of 19.4 percent as compared to the prior year figure of €97.0 million. At €5.5 million, EBIT in the Customized Modules division in the first three months of 2015 was above the prior-year figure (€5.1 million), hence the EBIT margin amounted to 4.8 percent (previous year: 5.2 percent).
In the Lifecycle Solutions division, Vossloh focuses on specialized services related to the maintenance of rails and switches. These include, in particular, preventive care and maintenance of rails and switches as well as welding and rail logistics work. Sales of the division in the first three months of 2015 of €11.9 million almost matched the previous year’s amount of €12.2 million. For reasons related to the season, EBIT in the Lifecycle Solutions was slightly negative at €(1.6) million in the first quarter (previous year:
€(1.0) million).
Sales in the Transportation division, which includes rail vehicles as well as vehicle components and corresponding services, recorded a considerable increase in sales as compared to the prior-year period. Sales in the first quarter of 2015 increased by 11.0 percent to €127.9 million (previous year: €115.3 million). The decisive factor here was the positive sales development in the Vossloh Rail Vehicles and Vossloh Electrical Systems business units. EBIT in the division in the first three months of the current year was negative at €(5.6) million (previous year: €(4.7) million).
Outlook confirmedThe Vossloh Group confirms its forecast for 2015. The company expects sales growth of between 3 percent and 4 percent in the current financial year. With this, the forecast revenue growth is once again significantly higher than the growth expectations for the rail technology market. A significant improvement is expected as compared to the adjusted EBIT 2014. The Vossloh Group aims to achieve an EBIT margin of between 3 percent and 4 percent in 2015.
New large order from ChinaAt the end of April, Vossloh has been awarded a new contract for high speed fastening systems worth around €70 million. From today's perspective, sales from the contract are expected to commence in 2016 and are within the scope of current company planning for that period. Vossloh Fastening Systems China will supply the route under construction from Beijing to Shenyang,
a 700 km long section of the main connection from Beijing to Harbin. On the so-called Jingshen-line, connecting Shenyang in the Northeast with the capital Beijing, maximum speeds of up to 350 km/h are planned. The travel time between the two cities will be shortened from currently almost four hours to around two and a half hours. In addition to Western Europe, the USA and Russia, China is one of four focus markets for the Vossloh Group assumed to represent future market growth.
Overview of the most important key figures of Vossloh Group
|
|
Q1 2015 |
Q1 2014 |
| Orders received |
€ million |
266.5 |
456.5 |
| Order backlog |
€ million |
1,697.6 |
1,869.3 |
| Sales |
€ million |
319.8 |
294.2 |
| EBIT |
€ million |
1.0 |
6.5 |
| EBIT margin |
% |
0.3 |
2.2 |
| ROCE |
% |
0.5 |
3.0 |
| Value added |
€ million |
(17.8) |
(14.8) |
| Net profit |
€ million |
(1.0) |
1.6 |
| Earnings per share |
€ |
(0.19) |
(0.04) |
| Average headcount in the period |
|
5,808 |
5,610 |
Werdohl, April 30, 2015
Contact information for media:Lucia Mathée, MATHEE GmbH
Phone: (+49-23 92) 52-608
Email:
presse@ag.vossloh.com Contact information for investors:Lucia Mathée, MATHEE GmbH
Phone: (+49-23 92) 52-609
Email:
investor.relations@ag.vossloh.com Vossloh is a global player in the rail technology markets. Our core business is rail infrastructure. Furthermore, the Group is active in the areas of rolling stock and electric buses. Under the umbrella of Vossloh AG and since January 1, 2015, these activities have been allocated to the four divisions Core Components, Customized Modules, Lifecycle Solutions and Transportation. In financial year 2014, Vossloh generated sales of €1.32 billion with more than 5,700 employees.