Vossloh Aktiengesellschaft / Key word(s): Restructure of Company/Profit Warning 27.06.2014 09:38 Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- The realignment of several business units and an updated market assessment are leading to additional charges in the likelihood of up to EUR250 million for the Vossloh Group in the current 2014 fiscal year. Due to expenses for necessary restructuring measures (up to EUR100 million), expenses relating to the current valuation of carrying amounts of various assets in the business units (up to EUR80 million) and following the revised assessment of project risks and other risks (up to EUR70 million) a negative EBIT of EUR-150 to EUR-180 is expected for 2014. At present it is anticipated that of these mostly one-time charges, a maximum of one third will affect the Company's liquidity in 2014. For the locomotive site in Kiel the executive board had decided today to direct the activities exclusively to the business with standard shunting and industrial locomotives and to adjust the capacity accordingly. The transfer of the production to a significantly more cost-effective location within the urban area is also being discussed. Likewise, it has been decided today to focus the products and services of Vossloh Electrical Systems on local transport. The resulting streamlining of the capacity and the revision of current project calculations are leading to extensive expenses in fiscal 2014. A revised market assessment for North America, China, Australia and Europe has led to a comprehensive revaluation of specific assets of the Switch Systems business unit, as well. The Fastening Systems and Rail Services business units continue with their basic structures remaining in place unchanged. Vossloh Rail Vehicles in Valencia is immediately taking over the project business from Kiel so that in the future it is also responsible for the customer-specific development of locomotives as well as the production and sale of these products. In connection with the realignment, there also has been a reduction of approximately one third of managers and the division heads. The implementation of the necessary measures will continue into 2015. Nevertheless, it is being strived for that the Group will already be operating profitably in 2015. With the resolved realignment, the basis is being created, in a second step, to define a new strategy for the Vossloh Group. This will be communicated by the Executive Board by the end of 2014. 27.06.2014 DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------------- Language: English Company: Vossloh Aktiengesellschaft Vosslohstr. 4 58791 Werdohl Germany Phone: +49 (0)2392 52 - 359 Fax: +49 (0)2392 52 - 219 E-mail: investor.relations@ag.vossloh.com Internet: www.vossloh.com ISIN: DE0007667107 WKN: 766710 Indices: SDAX Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Hamburg, Hannover, München, Stuttgart End of Announcement DGAP News-Service ---------------------------------------------------------------------------
DGAP-Adhoc: Vossloh Aktiengesellschaft: Vossloh expecting a negative EBIT of between EUR-150 to EUR-180 million for 2014
| Source: EQS Group AG