Database

Growth pattern sustained once again. Voith prepares itself for harder times ahead.

Heidenheim/Stuttgart. In fiscal 2007/2008 (the year to September 30, 2008), Voith once again successfully maintained the pattern of growth witnessed in the preceding years. The Group’s order intake rose 18.7% to €6.1 billion (previous year: €5.1 billion). Sales were up 17.8% to €4.9 billion (previous year: €4.2 billion) – the highest level in the history of the company.

Double-digit sales growth at all four Group Divisions contributed to robust business performance in fiscal 2007/2008. At the same time, Voith further expanded its strong position in the world’s key growth regions. Today, the Group generates around 30% of its product and system sales in the forward-looking markets of Asia. In the years ahead, we aim to become even more strongly established in China and India.

Some of the profits realized on ordinary business in fiscal 2007/2008 were invested to tap new lines of business in the transportation sector (locomotives and turbochargers) and in environmental technology (anaerobic reactors and ocean energy), for instance. The Group spent a total of around €400 million on investments and acquisitions in the period under review, while a further €250 million was channeled into research and development. Voith has thus laid a firm foundation for the future. The result was net income of €144 million in fiscal 2007/2008. In the previous year, net income (including a one-time item in the amount of €26 million) totaled €179 million.

Hubert Lienhard, Voith’s President and Chief Executive Officer, is upbeat about the fiscal year just ended: “2007/2008 was a good year for Voith. We have a footprint in all significant markets and business regions throughout the world. Our products provide answers to the pivotal questions of the 21st century, addressing issues such as the efficient use of energy and resources and the need for clean, renewable sources of energy. Our balance sheet is healthy and adequate capital resources are in place. All of which gives us room to maneuver in the difficult times that lie ahead.”

Lienhard expects business to flatten noticeably in the coming months. “A recession of this magnitude is naturally also going to affect Voith,” the Voith boss says. “In the business lines that are affected, we are therefore responding swiftly and resolutely to market requirements, adjusting our processes and capacity as and when necessary. We are already taking action that will leave us stable and healthy when the next growth phase begins.”
In the first three months of fiscal 2008/2009, the impact of the economic crisis varied throughout the Group. Both new orders and sales remained stable at Voith Siemens Hydro, Voith Turbo and Voith Industrial Services – the Group Divisions that service the markets for oil, gas, energy and public transport. Voith is nevertheless confident that the future holds strong business potential in these markets. The impact of the dramatic slump in the truck and automotive market on Voith Turbo and Voith Industrial Services is foreseeable and, indeed, already tangible.

Voith Paper has been hardest hit, however. Around the globe, business in the paper industry is slack. New plant business in particular has collapsed. Thanks to the Group’s singularly broad portfolio, it was nevertheless possible to cushion the impact of the economic crisis on the Group as a whole in the first quarter of fiscal 2008/2009.

Voith sets new standards in the paper, energy, mobility and service markets. Founded in 1867, it has grown to become one of the largest family-owned corporate groups in Europe, employing 43,000 people, posting annual sales of €4.9 billion and operating more than 270 facilities around the globe.