HEIDENHEIM, Germany and YORK, Pa. (PRWEB) December 07, 2017
• Orders received increase by 6.3 percent to €4.4 billion
- Profitability in core business strengthened further, Group’s net result at an all-time high (€596 million)
- Sales remain stable at €4.2 billion
- Implementation of the digital agenda going according to plan
- Electromobility roadmap presented
After a good fiscal year 2016/17, the Voith Group is entering a new growth phase strategically, operationally and financially strengthened. Orders received in the previous year improved by 6.3 % to € 4.4 billion and so exceeded expectations. The Voith Paper Group Division made a particular contribution to that, growing its orders received strongly by 24%. Orders on hand at the end of the fiscal year remained at a high level of € 5.2 billion (previous year: € 5.3 billion). Sales at the Group were € 4.2 billion and so, as forecast, were able to be maintained at the high level of the previous year, despite a challenging market environment.
Operating business developed positively in the company’s 150th anniversary year with a further increase in the profitability of its core business. The profit from operations at its three traditional Group Divisions Voith Hydro, Voith Paper and Voith Turbo rose to a total of € 304 million (previous year: € 295 million); Voith Paper stood out here in particular, posting a hefty in-crease of 40 %. However, the profit from operations reported for the Voith Group fell to € 241 million (€ 275 million), mainly due to the planned start-up costs for Voith Digital Solutions. The Group’s net result climbed to an all-time high of € 596 million (previous year: € 29 million).
The high proceeds from the sale of KUKA meant a significant improvement in the Group’s financial position in the past fiscal year. The equity ratio in the Group reached a historic high of 27.3% (previous year: 14.9 %). The Voith Group’s financial strength also improved sharply. Net liquidity increased in the same period to € 648 million (previous year: € 168 million).
“Fiscal 2016/17 was a good year for Voith – with a clear confirmation that our operational earnings power has grown sustainably, a comfortable financial position and a significant improvement in our balance sheet. We’re fully on track to achieve our goal of positioning Voith as a significant shaper of the digitial industry,” stated Dr. Hubert Lienhard, President and CEO.
Clear focus on issues of the future
The Group pressed ahead with implementing its digital agenda in the past fiscal year. All initiatives at the Voith Digital Solutions Group Division are going according to plan. In the two fiscal years 2016/17 and 2017/18, Voith invests a total of around € 100 million in developing digital products and services, on top of the around € 225 million the Group spent on research and development (in fiscal year 2016/2017). The Group thus increased its forward-looking investments appreciably. Expenditure on research and development amounted to 5.3% of sales.
However, Voith is not only making massive efforts to drive its digital transformation across all Group Divisions, but is also investing in other issues of the future with great potential for growth. In the past fiscal year, the Voith Turbo Group Division presented a strategic roadmap for tapping the market for electric drives. In the field of electromobility, the company aims to become a system vendor for electric drives and digital vehicle and fleet management systems in the coming years. It is to present its own fully electric drive for buses and a dynamic fleet management system to the trade public at the 2018 IAA Commercial Vehicles show.
Outlook: Voith Group on a good footing for future growth
The Group anticipates perceptible growth in sales and a further increase in orders received for the 2017/18 fiscal year that has just started. The profit from operations in core business is also expected to improve. Voith will continue to shoulder the high start-up costs for the Voith Digital Solutions Group Division, which is to unfold greater dynamism in the current fiscal year, from current operations. Even taking into account these additional investments, which are once again expected to be well in the double-digit million range as in the previous year, the Voith Group’s profit from operations is to increase slightly.
Voith is a global technology group. With its broad portfolio of systems, products, services and digital applications, Voith sets standards in the markets of energy, oil & gas, paper, raw materials and transport & automotive. Founded in 1867, Voith today has more than 19,000 employees, sales of €4.2 billion and locations in over 60 countries worldwide, and is thus one of the largest family-owned companies in Europe.