Vossloh resolves cornerstones for a performance program and publishes key figures for the first quarter of 2019 in advance
Today the Executive Board of Vossloh AG resolved the essential cornerstones of a program for a sustainable increase in profitability as well as an improvement in the self-financing capability and thus reduce the net financial debt of the Vossloh Group. The program includes, among other things, a reduction in the number of employees from the end of 2018 amounting to around 5 percent as well as a systematic review of unprofitable activities. Necessary decisions will be taken in 2019. The resulting measures will essentially be implemented in 2019. In addition, the program will increasingly focus on reducing overheads, savings in capital expenditures and intensified measures for reducing working capital. Further measures are being reviewed on an ongoing basis. With these measures, the Executive Board aims to expand Vossloh’s financial scope for future growth in an increasingly digital rail world.
Management confirms the communicated outlook for the operational business in the 2019 fiscal year (Group sales of €900 million to €1 billion, EBIT between €50 million and €60 million). Effects on earnings from the program of measures cannot yet be sufficiently quantified from the current perspective and therefore are still not incorporated into the 2019 outlook. In particular regarding unprofitable activities, no specific decisions have yet been made. For the 2020 fiscal year, management plans are unchanged for Group sales between €950 million and €1.05 billion and EBIT between €65 million and €80 million.
Group sales amounted to €190.0 million in the first quarter of 2019 (previous year: €178.3 million). EBIT of €(0.6) million was within expectations and slightly below the previous year’s level (€1.6 million). Net financial debt (without finance leases) was €370.7 million as of March 31, 2019, primarily reflecting a predominantly seasonally driven increase in working capital higher than as of December 31, 2018 (€307.3 million). As of March 31, 2018, net financial debt amounted to €248.1 million. Net income was €(22.5) million (previous year: €1.4 million) and was burdened by a negative result from discontinued operations. The performance of orders received was once again encouraging. Orders received of the Group were €281.0 million, 33 percent higher than in the previous year (€211.4 million). The order backlog of €686.1 million as of March 31, 2019 was also significantly higher than the previous year’s figure of €513.2 million.
Vossloh will publish the complete quarterly statement as planned on April 25, 2019.
Werdohl, April 23, 2019
Contact information for the media:
Gundolf Moritz (Mirnock Consulting)
Phone: (+49-23 92) 52-608
Contact information for investors:
Dr. Daniel Gavranovic
Phone: (+49-23 92) 52-609
Vossloh is active in rail technology markets worldwide. The Company’s core business is rail infrastructure. The Group activities are organized into the three divisions of Core Components, Customized Modules and Lifecycle Solutions. In the 2018 fiscal year, Vossloh achieved sales of €865 million with approximately 3,800 employees.