Vossloh says that calculated on a pro-forma basis, Ebit amounted to €23m for the nine months, while orders secured amounted to €969.8m compared with €1.14bn in 2013. The order backlog stands at €1.73bn, which is similar to the figure from last year.
Vossloh's executive board is expected to present a new group strategy on December 3 when further details of its future plans will be made available. However, it is clear that achieving sustainable positive results and generating free cash flows will be a core element of this plan.
"We will be occupied with the implementation of the entire programme of measures extending in 2016, with alleviations expected in 2016 and extending into 2017," says Dr Hans Schabert, Vossloh CEO. "Vossloh should be set on a new course in the coming years. In addition to the ongoing restructuring programme, this will be mean increased investments in future-oriented technologies."
Vossloh's declining sales are evident in a 2.8% fall in its rail infrastructure division to €640m with Ebit amounting to negative €5.7m. Fastening system sales also fell to €248.5m. Switch systems did report a 4.2% increase in sales to €342.1m. However, sales were described as unexpectedly low due to delays with contracts outside of Europe.
Despite Vossloh Transportation division, which includes rail vehicles and vehicle components, reporting a 9.3% increase in sales to €327.7m, Ebit in the division dropped to negative €118.6m due to charges from the restructuring division and weak business development. Vossloh Rail Vehicles, based in Valencia, was a major contributor to the increase in sales by growing revenues by 44% to €148.8m. However, Vossloh's locomotive manufacturing site in Kiel, despite a strong start to the year, was behind target with sales at €70.7m compared with €84.8m in 2013.