Stadler Rail suffered a sharp drop in profits in 2022

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As a result, Stadler Rail’s net profit fell 44 percent to CHF 75.1 million. The strength of the Swiss franc and financial losses dragged the net down, as the eastern Swiss company announced on Wednesday. Also, supply chain issues have caused problems for the group boss Peter Spuhler.

Sales rose to CHF 3.75 billion. This is a new record, 3.2 percent above the previous year’s record. The company said currency developments alone would cost around 140 million francs, meaning sales were at the lower end of the original estimate.

Order intake (8.56 billion) and pending orders (22.0 billion) also reached new peaks. This means backlog orders are CHF 4.1 billion more than twelve months ago.

“In addition to the large number of successes at smaller auctions, the strong increase is mainly due to individual large orders with lead times longer than ten years,” says Stadler. This also includes the largest order in Swiss railway history: SBB and regional railways Thurbo and RegionAlps have ordered 286 trains worth 2 billion francs from Stadler.

Expectations were largely met

Stadler’s operating profit EBIT fell 8 percent to CHF 205.1 million, after 6.2 percent in the previous year, and the EBITDA margin fell to 5.5 percent. Without adverse currency effects, Stadler could have achieved an EBITDA margin of approximately 7 percent. The company benefited from a one-off effect of CHF 21.3 million in connection with the acquisition of German signal technology company BBR, announced last December.

Thus, Stadler missed the expectations of financial professionals at all levels except dividends. Shareholders will receive a constant dividend of CHF 0.90 per share.

expected stability.

For fiscal year 2023, Stadler again expects sales of CHF 3.7 to 4.0 billion. The EBITDA margin should be at a level comparable to 2022. Stadler expects an investment of approximately 200 million francs in 2023 to provide the required capacities.

By 2025, Stadler Rail’s sales are expected to grow in the mid-single-digit percentage range each year. Investments, which were 200 million last year, need to decrease to 120 to 150 million francs.

However, in the face of headwinds from currencies, inflation and supply chain issues, the group cut its EBITDA margin target to 7 to 8 percent by 2025 in August. CEO Peter Spuhler said that under normal conditions Stadler Rail could achieve an EBITDA margin of 8 to 9 percent. (SDA/kae)

Source :Blick