DGAP-Adhoc: Vossloh Aktiengesellschaft: Vossloh expecting a negative EBIT of between EUR-150 to EUR-180 million for 2014

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.

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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,
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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
 
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