Vossloh Q1 Preliminary EBIT Surges; Affirms FY20 Outlook – Quick Facts

German rail technology company Vossloh Group (VOSSF.PK) on Monday announced preliminary results for the first quarter of 2020.

The company’s earnings before interest and taxes or EBIT improved significantly to 16.5 million euros, from negative EBIT of 0.6 million euros in the same period last year.

Vossloh noted that the unusually high EBIT reflects not only operating improvements, but also a 15.6 million euro adjustment to the carrying amount recognized in profit and loss from obtaining control of a joint venture previously accounted for at equity.

Accordingly, the EBIT margin increased to 9.0 percent from the previous year’s negative 0.3 percent.

Vossloh’s sales for the quarter were 182.9 million euros, slightly above the portfolio-adjusted figure of 177.5 million euros in the year-ago period, despite initial effects from the COVID-19 pandemic. Reported sales for the prior- year quarter were 190.0 million euros.

Looking ahead to fiscal 2020, Vossloh affirmed its outlook for sales between 900 million euros and 1 billion euros, as well as an EBIT margin between 7 percent and 8 percent.

The outlook takes into account the described effect from the business combination achieved in stages and based on current knowledge and a careful risk assessment, with reference to uncertainties regarding the further impact of the COVID-19 pandemic.

The company will publish the complete figures for the first quarter of 2020 along with the interim statement on April 30, 2020.

Source: Read Full Article