May 30, 2014. /Lesprom Network/. In the first six months of the 2013/14 fiscal year, the Voith Group has continued its sound development in a slightly brighter economic environment, has won a significantly higher number of new orders and has thus started to reverse the trend in new business. Orders received, which were still on the decline in the past fiscal year, increased noticeably between October 2013 and March 2014 in comparison to the same period of the previous year by 6% to Euro 2.78 billion, despite the negative currency effects of around Euro 100 million. All Group Divisions made a contribution to the rise. Orders on hand improved slightly on the end of the fiscal year to Euro 5.2 billion, as the company said in the press release received by Lesprom Network. 

As of the end of March, Group sales were slightly down by 4 percent in comparison to the same period of the previous year to Euro 2.60 billion (Euro 2.72 billion). This development was essentially due to negative currency effects, which are currently also impacting other companies, totaling around Euro 120 million at Voith. Adjusted for this non-recurring negative effect, Group sales were up slightly on the previous year.

Despite the decline in sales, Voith succeeded in making up for the negative currency effects in its operating result. The operational result before non-recurring items rose to Euro 105 million (previous year: Euro 103 million). The improvement in profitability is mainly due to the measures and initiatives introduced under the Group-wide success program “Voith 150+” (Voith is celebrating its 150th anniversary in 2017). Voith launched the program in the past fiscal year in order to set the sails for a sustainable and successful future. The main focus of the program is on optimizing structures and processes as well as the existing portfolio alongside recognizing and exploiting growth potential.

As planned, the first positive effects of the program were not yet visible in the net income in the first six months. The net income of the Group decreased to Euro 30 million (previous year: Euro 63 million). This was due to positive non-recurring effects arising in the financial result and in income taxes that distort the picture in the same period of the previous year. Adjusted for these special effects, net income was 20% higher than the comparable figure of the previous year.

For Voith Paper, the first half of the fiscal year proved once again to be difficult in light of an ongoing weak market for paper machines. On account of the decline in orders received in previous years, sales contracted by 11% to Euro 673 million. On the other hand, orders received in the period under review rose by 5% to Euro 709 million; these orders stemmed from Asia in particular, where pleasing successes were achieved and where the main demand stemmed from the strong-growth mid-size segment.