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Vossloh looks to divest rolling stock division

Vossloh 6N2 low-floor trams have recently been delivered to Rostock in Germany.

On 3 December the Supervisory Board of Vossloh announced a new corporate strategy to take the company to 2017 that involves a greater focus on its track products and infrastructure activities and divesting its rolling stock and LRV interests.

From 2015, Vossloh’s rail infrastructure division will form three new business units: Core Components, Customised Modules and Lifecycle Solutions, which will be strengthened through acquisitions where appropriate. According to an earlier statement, its Transportation division – which produces diesel locomotives, trams and tram-trains, as well as driving significant component sales – is forecast to generate around EUR500m in revenues in 2014, but while “these three new infrastructure units form the future core business of the group… the previous transportation division is no longer defined as core business but will nevertheless initially remain as a fourth division.”

Depending upon the results of the restructuring process, the Transportation division will be either sold in its entirety or in parts by 2017. Alternatively, the company is willing to consider entering into a partnership for the division, with Vossloh taking a minority shareholding.

The company is restructuring for growth in four defined markets, Western Europe, China, USA and Russia, with “additional attractive markets defined for intensive development.”

As part of the statement, Vossloh confirmed its previous forecast of a negative EBIT of between EUR150m and EUR180m on revenues of EUR1.34bn for the current financial year. After adjustment for one-off effects, the company forecasts a positive EBIT of EUR30m for the period, equating to a margin of 2%. Predicting steady growth, following the restructuring process Vossloh anticipates this is to increase to 5-6%.