Voith: Orders received and sales in fiscal 2010/11 hit new heights

Further growth expected for 2012

15-Dec-2011 - Germany

The Voith Group has expanded its market position in all business areas in fiscal 2011 (per 30 September 2011) and hit new heights in terms of orders received and sales. Compared with the previous year, the order intake of the globally active family-owned company rose by 20 percent to EUR 6.4 billion and thus exceeded the previous best of the boom year 2007/2008. Sales in the past fiscal year increased to EUR 5.6 billion, surpassing the record values of the previous year by another 8 percent. Voith was once again able to improve the excellent result of the previous year: the operative income prior to non-recurring results amounted to EUR 416 million; after tax the Group earned EUR 200 million.

"These excellent figures are a definite confirmation of our long-term strategy, which is based on sustainable and profitable growth. A particularly positive aspect is that our income has grown more strongly than our sales," said Dr. Hubert Lienhard, President and CEO of the Management Board of Voith GmbH at the company's balance sheet press conference in Stuttgart. "We have demonstrated that we are capable of playing off our special strengths - our balanced portfolio, our deep roots in international key markets and our innovative power - in a challenging environment" stated Lienhard.

Profitable Growth in All Group Divisions

In the past fiscal year, the Voith Group was able to achieve growth both in terms of sales and orders received in all four Group Divisions, and to increase its results by a double-digit margin. Voith CEO Lienhard: "In the past business year, the value of new orders was once again above the respective sales figures in all four business areas. This shows: we are not living off our substance but have already secured future growth and the further utilization of our capacities."

Voith Hydro, one of the world's leading complete suppliers for hydro power equipment increased its sales by 6 percent to EUR 1.2 billion. The Group Division, which was particularly successful in the core markets South America, NAFTA and China, was able to register an 81 percent increase in orders to EUR 1.8 billion. As of 30 September 2011, orders in hand amounted to EUR 3.3 billion.

The Division Voith Industrial Services, where Voith offers services for key industries such as automotive, energy, chemical and petrochemical plants, benefited from positive market developments in nearly all customer industries. In the past fiscal year, Voith Industrial Services focused on profitable business and industries and adapted its service portfolio accordingly. The new organization of the Division's business sectors, which enabled Voith Industrial Services to sharpen its focus and also pool its competencies in individual industries, was well received by the market. In addition, Voith Industrial Services pushed ahead with the globalization of its activities - traditionally strongly rooted in Europe - and the diversification within individual regions. The Division increased its sales to EUR 1.0 billion.

Voith Paper was able to slightly raise its sales to EUR 1.8 billion in the past business year. The Division saw good development opportunities, especially through the worldwide growth in paper and board production. In the hygienic and tissue paper sector, Voith Paper managed a return to the top of this strongly growing market thanks to its innovative ATMOS technology. The order situation remains positive: Voith Paper secured new business worth EUR 2.0 billion. Orders in hand climbed to EUR 1.5 billion per 30 September 2011, constituting a 12 percent rise compared to the value of the previous year.

In its capacity as a specialist for drive technology, Voith Turbo was able to benefit from the recovery in all four business areas of the Division. While the sector Industry continued to develop positively, the Marine Division was able to put its recession-induced slump in business behind. Growth trends in the Market Divisions Rail and Road remain unbroken. Voith Turbo was thus able to increase its sales by 13 percent to EUR 1.5 billion, while the value of new orders rose by 16 percent to EUR 1.6 billion. Orders in hand showed a slight increase to EUR 1.3 billion at the end of the fiscal year.

Ongoing High Investment and New Jobs

In the past fiscal year, Voith has once again pushed its policy of significantly investing in the productivity and the strategic orientation of the company. With an investment quota of 3.8 percent of the Group's sales, the family-owned company focused on the further internationalization of its production, for example by setting up new plants in China, Brazil and Austria, as well as promoting future technologies. Voith Composites opened a new development and manufacturing center in Garching near Munich for the production of carbon components for inhouse use and partner companies, as well as the further development of industrial production processes for CFK components.

Thanks to its positive business development, Voith was able to create 937 new jobs on balance in the past fiscal year. The number of employees (without apprentices) rose from 39,754 in the previous year to 40,691 per 30 September 2011. In Germany, the number of employees rose by 653 to 17,429. In the Asian growth markets, 656 new employees were recruited on balance, increasing the Voith workforce in this region to 4,557.

Well Equipped for the Future

Although the business environment is set to remain challenging until further notice, the Management Board of Voith GmbH looks to the future with confidence. Under the assumption that the world economy will continue to grow - albeit at a slower rate - sales and income are to be increased in the current and the forthcoming fiscal year.

"Based on our proven strategies we are well equipped to continue our success also in the future," states Dr. Lienhard. "We supply global megatrends and future markets with innovative products and solutions for sustainable development. We have a forward-looking portfolio, sufficient liquidity with long-term secured access to capital and an efficient organization with outstanding employees. We are also in a position to react flexibly to any changes. And this, with all due caution, gives us the ease and the confidence to say: Voith is prepared."

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