DGAP-News: Vossloh Aktiengesellschaft: Vossloh adjusts sales revenues and earnings guidance for 2022

Vossloh adjusts sales revenues and earnings guidance for 2022

• Sales revenues guidance raised to between 0.95 billion and 1.05 billion
• EBIT margin of between 6 and 8 percent expected
• Double-digit EBIT margins still targeted for all divisions in the medium term

Werdohl, May 12, 2022. Based on the latest information on business developments, the Executive Board of Vossloh AG adjusted today the guidance for the 2022 fiscal year. Vossloh expects higher sales for the current fiscal year than previously assumed. The company now anticipates sales to be between 0.95 billion and 1.05 billion, while the previous expectation ranged between 0.925 billion and 1.0 billion. Higher sales contributions compared to the original forecast are expected in the Core Components division in particular. In addition to the good order situation and positive exchange rate effects, a key driver of this development is the passing on of higher procurement prices for materials and energy to customers. The portion of price increases that cannot be passed on or can only be passed on with a delay will weigh on the Vossloh Groups EBIT in the 2022 fiscal year and, together with increased sales, will result in lower profitability. On this basis, the Executive Board now expects an EBITDA margin of between 11.5 percent and 13.5 percent and an EBIT margin of 6 percent to 8 percent for the current fiscal year. In order to take into consideration the current high level of uncertainty surrounding the COVID-19 pandemic and the war in Ukraine, the Executive Board has widened the forecast range to two percentage points. Previously, the guidance indicated an EBITDA margin of between 13 percent and 14 percent and an EBIT margin of between 7.5 percent and 8.5 percent, following an EBITDA margin of 13.2 percent and an EBIT margin of 7.7 percent in the 2021 fiscal year.

For the second quarter of 2022 Vossloh expects profitability to be noticeably lower than in the corresponding quarter of the previous year. However, based on the current outlook, profitability in the second half of 2022 is expected to be significantly higher than in the same period of the previous year.

When we presented our encouraging figures for the first quarter, we already stated that developments in material prices in particular and the possibility of passing on of additional burdens would significantly impact profitability over the remainder of the year. The ongoing analysis of developments has now prompted us to adjust our expectations for this fiscal year, said Oliver Schuster, Chief Executive Officer of Vossloh AG. In addition, given the current situation, we cannot rule out the possibility of additional price increases for some materials in the course of the year. Besides, even if we pass on the full amount of higher procurement prices, in purely accounting terms this will have a negative impact on the profitability of the Group. Despite the difficult underlying conditions, we can look to the future with great confidence. The record level of orders received in the first quarter provides clear evidence of our strong competitiveness. We will master these temporary challenges related to higher input prices as well. We therefore remain committed to our medium- and long-term profitability targets.

Vossloh will continue to strive for double-digit EBIT margins in all divisions in the medium term. In the long term, this also applies to the Group as a whole.

Contact details for the media:
Andreas Friedemann (Kirchhoff Consult AG)
Phone: +49 (0) 2392 52-608
E-mail: Presse@vossloh.com

Contact details for investors:
Dr. Daniel Gavranovic
Phone: +49 (0) 2392 52-609
E-Mail: Investor.relations@vossloh.com

Vossloh is a global technology group that has stood for quality, safety, customer orientation, reliability and innovative strength for over 135 years. With its comprehensive range of rail-related products and services, Vossloh is one of the world market leaders in this sector. Vossloh offers a uniquely broad range of services under one roof: Rail fastening systems, concrete sleepers, switch systems and crossings as well as innovative and increasingly digital-based services for the entire life cycle of rails and switches. Vossloh uses its systemic understanding of the track to address the central customer need of "availability of the rail track".
Vossloh products are in use in more than 85 countries. With some 80 group companies in around 30 countries and over 35 production locations, Vossloh is active on the ground worldwide. Vossloh is committed to sustainable corporate governance and climate protection and with its products and services makes an important contribution to the sustainable mobility of people and goods.
The Group's activities are divided into three divisions: Core Components, Customized Modules and Lifecycle Solutions. In fiscal 2021, Vossloh generated sales of 942.8 million with around 3,600 employees.
 

Vossloh AG Vosslohstrasse 4 58791 Werdohl, Germany Telephone +49 (0) 239 252-0 Fax +49 (0) 239 252-538 www.vossloh.com
Company headquarters: Werdohl, Germany Commercial register: Local court of Iserlohn HRB 5292
Chairman of the Supervisory Board: Prof. Dr. Rüdiger Grube
Executive Board: Oliver Schuster (CEO) Dr. Thomas Triska Jan Furnivall