Vossloh AG has recorded a 4.6% increase in sales from EUR 418.1 million in the previous year to EUR 437.1 million in the first six months of 2019.
The Core Components division particularly contributed to the growth, following the completion of the acquisition of Australian concrete ties manufacturer Austrak at the end of 2018.
Regarding the performance programme announced in April 2019, an adjusted EBIT is reported for the first time in the half-year report, which is adjusted for negative one-time effects arising from the performance programme. These amounted to EUR 6.9 million in the first half of 2019 and related almost exclusively to a by 5 % workforce reduction component.
The Vossloh Group’s EBIT adjusted for these effects was EUR 20.5 million in the first half of the current fiscal year, compared to EUR 22.8 million in the previous year. The corresponding adjusted EBIT margin therefore came to 4.7 %, compared to reported 5.4 % in the comparable period of 2018.
The Vossloh Group orders increased by 18.6%, to EUR 568.9 million, from EUR 479.7 million (in the previous year).
As of June 30, 2019, the Vossloh Group’s order backlog was EUR 726.9 million, increasing from EUR 543.5 million recorded in the previous year.
In the first six months of 2019, the Core Components division’s orders increased by 34.4 % to EUR 243.9 million, from EUR 181.6 million. Of this amount, EUR 152.4 million was attributable to the Fastening Systems business unit.
In the Tie Technologies business unit, orders received stood at a high EUR 94.5 million from EUR 33.9 million). In addition to a major order from the customer Rio Tinto for the delivery of concrete ties, orders received in North America also developed positively. In June 2019, the order backlog of the entire Core Components division amounted to EUR 316.5 million, increasing from EUR 177.2 million. Sales revenues in the Core Components division increased to a consolidated EUR164.8 million in the first six months of the current year. While revenues of Vossloh Fastening Systems with EUR 109.3 million were almost at the previous year’s level of EUR 110.6 million, sales from Vossloh Tie Technologies rose to EUR 61 million.
The Customized Modules division signed important framework agreements, for example, a EUR75 million contract with Trafikverket, or EUR 25 million agreement with Rete Ferroviaria Italiana. In total, orders received in the Customized Modules division were EUR 273.4 million in the first half of 2019, increasing from EUR247.8 million.
In the first half of 2019, Lifecycle Solutions’ orders increased by 14.2% EUR 60.7 million. The division’s order backlog was EUR 24.7 million as of June 30, 2019, following EUR 29.1 million as of June 30, 2018. Sales revenues for the first six months of 2019 were EUR 48.8 million, up 5.9 % from EUR 46.1 million in the same period of the previous year. EBIT fell from EUR 3.1 million in the previous year to EUR 1.5 million after adjustment. The EBIT margin’s adjusted value of 3.2 % was thus below the previous year’s level of 6.8 %. An important reason of the decline were lower earnings contributions from the sale of vehicles.
For the operational business in fiscal year 2019, management continues to assume group sales of EUR 900 million to EUR 1 billion and adjusted EBIT between EUR 50 million and EUR 60 million. Due to the good order situation in China among other things, Vossloh continues to expect group sales of between EUR 950 million and EUR 1.05 billion and an EBIT of between EUR 65 million and EUR 80 million for fiscal year 2020.
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