May 31, 2013. /Lesprom Network/. In a challenging market environment the Voith Group closed the first half of fiscal 2012/13 (as at March 31) with a sideward movement. In the first half of fiscal 2012/13 Voith secured new orders worth Euro 2.63 billion – a plus of 2% (previous year: Euro 2.57 billion). As at March 31, 2013, orders on hand amounted to Euro 5.9 billion and were thus slightly below the level of the previous fiscal year-end (September 30, 2012: Euro 6.1 billion), as the company said in a press release received by Lesprom Network.

Sales of the globally operating family-owned company fell by 1% to Euro 2.72 billion (previous year: Euro 2.74 billion). At Euro 60 million, the net income for the first half year virtually matches the previous year (previous year: Euro 63 million).

According to Voith, the weak business development in the first half of fiscal 2012/13 is mainly due to two factors. On the one hand, customers are currently very reluctant to invest and are holding back with new investments in light of the uncertain economic climate. On the other, the structural upheaval in the market for graphic grade paper machines is still leaving its mark on the Voith Paper Group Division, as already announced.

The restructuring measures introduced will take time to return the earnings situation of the Group Division to its former level. In addition, the cyclical drop in sales also led to a reduction in the profit from operations and the net income in the Voith Paper Group Division. The ongoing recession in the paper industry, which particularly affects the business for new machines, will continue to have a negative impact on the earnings of the Group for the next few months.

"All in all, there is a lack of economic tailwind," says Dr. Hubert Lienhard, President and CEO of the Corporate Board of Management. "But we benefit in this phase from our highly diversified portfolio and our strong position in our key industries. This provides us with a stable basis, despite the ongoing weak market development," states Lienhard.

Voith Paper division looks back on a difficult first half of fiscal 2012/13: sales and orders received are in decline. Sales shrank by 9% to Euro 757 million (previous year: Euro 831 million). In the period under review, Voith Paper received orders worth Euro 672 million – a decrease of 14% (previous year: Euro 785 million).

Voith Paper is a division of the Voith Group and the leading partner to and pioneer in the paper industry. Through constant innovations, Voith Paper is optimizing the paper manufacturing process, focusing on developing resource-saving products to reduce the use of energy, water, and fibers.

Voith sets standards in the markets energy, oil & gas, paper, raw materials and transportation & automotive.