Slight decline in Voith Group H1 FY'13 sales

Highlights:
- Orders received above previous year at EUR 2.6 billion
- Sales in slight decline at EUR 2.7 billion
- Net income almost at previous-year's level at EUR 60 million
- Half year clouded by economic mood and exceptional negative effects

In the first half of fiscal 2012/13 Voith secured new orders worth EUR 2.63 billion – a plus of 2 percent (previous year: EUR 2.57 billion). As at March 31, 2013, orders on hand amounted to EUR 5.9 billion and were thus slightly below the level of the previous fiscal year-end (September 30, 2012: EUR 6.1 billion). Sales of the globally operating family-owned company fell by 1 percent to EUR 2.72 billion (previous year: EUR 2.74 billion). At EUR 60 million, the net income for the first half year virtually matches the previous year (previous year: EUR 63 million).

According to Voith, the weak business development in the first half of fiscal 2012/13 is mainly due to two factors. On the one hand, customers are currently very reluctant to invest and are holding back with new investments in light of the uncertain economic climate. On the other, the structural upheaval in the market for graphic grade paper machines is still leaving its mark on the Voith Paper Group Division, as already announced.

The restructuring measures introduced will take time to return the earnings situation of the Group Division to its former level. In addition, the cyclical drop in sales also led to a reduction in the profit from operations and the net income in the Voith Paper Group Division. The ongoing recession in the paper industry, which particularly affects the business for new machines, will continue to have a negative impact on the earnings of the Group for the next few months.

The half-year financial statements were also clouded by a series of exceptional negative effects, especially in the Voith Turbo Group Division. These include, for example, the loss of profitable sales volume in the oil and gas business with Iran due to tougher export sanctions, tax charges for previous periods, as well as write-downs.

"All in all, there is a lack of economic tailwind," says Dr. Hubert Lienhard, President and CEO of the Corporate Board of Management. "But we benefit in this phase from our highly diversified portfolio and our strong position in our key industries. This provides us with a stable basis, despite the ongoing weak market development," states Lienhard.