Record orders put CAF on track for growth
CAF: Spanish rolling stock, infrastructure, signalling and services supplier CAF has announced a record order intake for 2016, a year in which it had consolidated its ‘new growth cycle’ and strengthened its financial position. Looking ahead, CAF said it was on track for growth in coming years, with a greater range of products and services to be developed and improved efficiency to bring cost savings.
The order intake in 2016 was up 197% year-on-year at €2·7bn, with revenue growth of 2·7% to €1·3bn driven by a recovery in industrial activity from July onwards and increased revenue from signalling and services. Export orders accounted for 79% of revenue. More than 60% of new orders came from Western Europe, and a third of the contracts were signed with existing customers.
Profit was down 13% at €37m, and debt was down 45% at €265m. There was a record order backlog of €6·2bn as of December 31 2016.
Double-digit compound annual growth in sales is anticipated in 2017-18. This will be driven by greater rolling stock sales and lower costs from increased standardisation, as well as strengthening of the services business through a proactive search for PPP contracts, undertaking more refurbishment work and developing technology-focused activities.