Vossloh classes Transportation division as 'discontinued operations'
VOSSLOH: Citing advanced discussions for the sale of the Locomotives business unit in Kiel, the executive board of Vossloh AG decided on February 16 to present the last remaining business unit of the Transportation division as ‘discontinued operations’ from December 31 2017.
An impairment loss on the carrying amount was recognised based on the current status of the ongoing discussions, although Vossloh expects a positive net cash inflow from the sale of the business unit.
Vossloh said revenues from continuing operations in 2017 had increased significantly from the previous year, with sales up from €822·5m to €918·3m, EBIT up from €57·5m to €70·3m and EBIT margin from 7·0% to 7·7%. However, ‘despite this encouraging development in the core business’, the group was ending 2017 with a negative net income attributable to shareholders as a result of discontinued operations and losses incurred in the Transportation division.
Sales in 2018 are expected to be at a similar level to 2017, with EBIT and EBIT margin down. Lower contributions to sales and earnings are expected from the sale of rail fastening systems in China, where project-related fluctuations are leading to temporarily weaker business performance.
A normalisation of business activities for the Fastening Systems business unit in China is anticipated in 2019, along with a ‘noticeable revival’ in demand from Class I operators in the USA.