Voith increases operating results in 2023-24 fiscal year

Voith, headquartered in Heidenheim, Germany, has outlined its performance in the first six months of its current fiscal year despite major uncertainties in the markets. The company says its focus was on further improving profitability and that it was able to increase its earnings, net income, net liquidity and orders in the reporting period. 

Group sales amounted to 2.64 billion euros, or $2.86 billion, which is slightly lower than in the previous year. At 3.62 billion euros, or $3.92 billion, orders received were significantly higher than in the previous year largely because of a major order the Voith Hydro division won. Orders on hand reached a record level of 8.13 billion euros, or $8.74 billion, as of March 31. Earnings before interest and taxes improved again in the first half of the year to 129 million euros, or $138 million, as did the net income at 38 million euros, or $41 million. Cash flow from operating activities (ONCF) increased to 159 million euros, or $171 million, compared with 35 million euros, or $37 million, in the same period of the previous year. 

“Voith performed well in the first half of the year despite continued major uncertainties in the markets,” Voith CEO Toralf Haag says. “In particular, we were able to significantly improve cash flow and profitability. This means that Voith remains in a resilient position both operationally and financially and has the necessary resources to invest in its future.” 

Investments in future technologies 

According to Voith, it continues to invest in climate-friendly technologies, such as alternative drive solutions, particularly in the field of hydrogen.In April, Voith HySTech GmbH was founded. According to Voith, its expertise in carbon composite materials combined with many years of industry and automotive sector experience, gives it a high level of knowledge in the field of hydrogen tank systems, enabling the development of a ready-to-install Plug and Drive hydrogen storage system for heavy-duty vehicles. The integrated 700-bar hydrogen tanks have had the approval required for marketing in Europe since the end of 2023. 

Voith is working with Essity, a global hygiene and health care company, on a concept that enables CO₂-neutral paper production. To advance decarbonization of the paper industry, a pilot plant has been installed at Voith's headquarters in Heidenheim, the company says. This project is being funded with around 14.5 million euros, or $15.6 million, as part of the Decarbonization in Industry program of the German Federal Ministry for Economic Affairs and Climate Protection (BMWK) and the EU fund NextGenerationEU. 

Voith says its major focus continues to be on the automation of rail freight transport, and the CargoFlex digital automatic coupler was developed for this purpose. It shifts freight transport to rail and makes contributions to reducing CO₂ emissions and achieving the goals of the European Green Deal. 

Sustainability as a business model 

In January, Voith committed to the Science Based Targets initiative (SBTi) to make further progress in reducing greenhouse gas emissions. The company also is committed to the 10 globally applicable principles of the Global Compact, which include the areas of human and labor rights, diversity and anticorruption.  

“Voith’s corporate board of management is committed to continuing to make sustainability the basis for strategic decisions and to consistently drive forward our sustainability activities worldwide,” Haag says. 

Developments in three group divisions 

In the first six months, its Hydro division recorded an increase in sales of 4 percent compared with the previous year at 587 million euros, or $635 million. Orders received rose to 1.51 billion euros, or $1.24 billion, resulting from a major order in West Africa. At 6 million euros, or $6.49 million, the operating result was stable. 

With sales of 1.04 billion euros, or $1.12 million, the Paper division recorded a year-on-year decline. Orders received fell to 1.04 billion euros, or $1.12 billion, in the same period. The operating result remained stable and amounted to 76 million euros, or $82 million, the company says. 

The Turbo division increased its operating result to 48 million euros, or $51.6 million. Sales went up 2 percent, amounting to 977 million euros, or $1.05 billion, while orders received fell slightly to 1.03 billion euros, or $1.11 billion. 

Voith expects an increase in orders received, profitability 

In the second half of the current fiscal year, Voith expects volatile markets and a global economy that will continue to be characterized by high interest rates and low economic growth. Nevertheless, the company expects to achieve its targets for the fiscal year and is sticking to its targets for orders received, sales and earnings.