WERDOHL (dpa-AFX) - German transport services firm Vossloh Group (VOSSF.PK) reported Wednesday that its second-quarter net income nearly doubled to 10.9 million euros from last year's 5.8 million euros. Earnings per share were 0.71 euro, higher than 0.31 euro a year ago.
The prior year results have been adjusted due to the sale of the former Rail Vehicles business unit.
EBIT climbed 17.3 percent to 17 million euros from 14.5 million euros last year. EBIT margin grew to 6 percent from 4.7 percent last year.
Sales, meanwhile, dropped 7.7 percent to 282.6 million euros from 306.1 million euros a year ago.
Orders received plunged 27.4 percent to 232.3 million euros.
Looking ahead, the company noted that due to the reserved sales development in the first half year 2016, Vossloh now expects to generate revenues in the current financial year at about the prior-year level of 1.2 billion euros. The main reasons for the slight decline in the sales forecast are a significant weakening of sales expectations in the USA.
Despite the somewhat lower sales expectations, Vossloh continues to expect an EBIT margin of between 4.0% and 4.5% for fiscal 2016.
In 2017, the EBIT margin should be between 5.5% and 6.0% on the basis of the current Group structure.
In a future portfolio structure without the Transportation division, significantly higher profitability is to be expected.
Copyright RTT News/dpa-AFX