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 EUR900 million to EUR1 billion, EBIT between EUR50 million and EUR60 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 EUR950 million and EUR1.05 billion and EBIT between EUR65 million and EUR80 million.
Group sales amounted to EUR190.0 million in the first quarter of 2019 (previous year: EUR178.3 million). EBIT of EUR(0.6) million was within expectations and slightly below the previous year's level (EUR1.6 million). Net financial debt (without finance leases) was EUR370.7 million as of March 31, 2019, primarily reflecting a predominantly seasonally driven increase in working capital higher than as of December 31, 2018 (EUR307.3 million). As of March 31, 2018, net financial debt amounted to EUR248.1 million. Net income was EUR(22.5) million (previous year: EUR1.4 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 EUR281.0 million, 33 percent higher than in the previous year (EUR211.4 million). The order backlog of EUR686.1 million as of March 31, 2019 was also significantly higher than the previous year's figure of EUR513.2 million.
Vossloh will publish the complete quarterly statement as planned on April 25, 2019.
Dr. Daniel Gavranovic
23-Apr-2019 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
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