PLASSER & Theurer reported an operating loss of €70m in its annual 2023 financial results, an increase of 27% compared with the €55m loss reported in 2022. The company also reported provisions of €70m to cover future expected losses.

The track equipment supplier’s financial performance has been severely impacted by recent global economic events. Plasser & Theurer told IRJ that it launched a major transformation programme in 2017 to consolidate and further expand its market position, investing “millions” in production sites, technology, and research and development. Some impact on operating results was expected, the company says.

“However, it goes without saying that the Covid-19 pandemic, global supply chain problems, the war in Ukraine and sharp cost increases were not factored into the calculations,” a Plasser & Theurer spokesperson told IRJ. “In addition, the more complex approval criteria of the Fourth Railway Package and internal challenges in the handling process have hit the company particularly hard. We are also experiencing a challenging international competitive situation.”

The supplier expects to break even this year and return to profitability in 2025. “The basis for this is our record order backlog of more than €1.2bn and continued incoming orders,” the spokesperson said. Plasser & Theurer reported revenue of €463m in 2023, 7% down on 2022, and the lowest for 15 years, local media reported.

The company has confirmed that it is working to increase its operating performance to meet customer and marker requirements. It is also set to introduce measures to reduce personnel and material costs, including working with partner companies to improve delivery volumes and reliability.

The spokesperson confirmed that the company will make 60 roles redundant by the end of this year, as well as 80 departures through natural wastage. There will also be a new wage structure for blue collar workers from October, with salary cuts of up to €400 gross according to income.

Plasser & Theurer said staff renumeration is “still at the top end of the market.”