The Group’s portfolio, which has grown over decades and supplies to both early and late-cycle markets, has only been impacted in parts by the effects of the worldwide economic crisis.
This corresponds to a plus of 17.5% and, apart from the consolidation effects mentioned before, reflects primarily the high order volumes of recent years that are now having an effect on the sales figures of the period under review.
We are satisfied with the developments of the first half year, says Voith Chief Execuitve Officer Hubert Lienhard. Yet these figures must not obscure the fact that Voith has been directly affected by the crisis in two significant markets. And in some markets to which we supply, the downturn is yet to come.
This is why we have promptly and resolutely introduced Group-wide measures in recent months that are meant to ensure a stable result also in the medium-term. Good order backlogs from previous years and positive impulses from those Group Divisions where business is still good provide us with entrepreneurial scope and time to stay capable of acting even during the crisis, comments Lienhard.
Voith does not have a prognosis for the progression of the entire business year: It is still impossible to foresee how long the recession will continue. Many factors that have an influence on our result are beyond our control. Yet I see Voith on a safe route to master this crisis and come out of this difficult period strengthened, continues Lienhard.
The worldwide economic crisis is currently having a drastic impact on the paper market and the markets for cars and commercial vehicles. As expected, this has affected Voith primarily in the business for new plants in the Group Division Voith Paper, as well as in some parts of Voith Industrial Services and Voith Turbo, which are active in these markets. Business in these areas has noticeably declined, and a short-term recovery is not in sight.
These negative effects are compensated to a large degree by the continuously positive development in the Group Division Voith Hydro, where the business with hydro power plants is driven by an untiring demand for renewable energies. Business in the Voith Turbo Market Divisions Industry and Rail is also good, as investments in infrastructure projects are usually financed on a long-term basis or benefit from national economic development programs.
