Rail technology company Vossloh has posted net income of €17.3m in the first half of this year, compared with €20.6m in the same period last year.
However, its sales revenue rose 3% from €462.6m to €476.4m, largely driven by sales growth in the customised modules unit.
Its earnings before interest, taxes, depreciation, and amortisation (EBITDA) decreased to €53.8m from €68.4m, mainly due to rise in material and energy prices.
Order backlog increased 41.6% to €827.9m from €584.6m, while orders received were 50.9% higher year-on-year.
Meanwhile, the firm’s sales revenue was slightly low at €254.2m in the second quarter of this year, versus €255.5m in the prior year.
Its EBITDA dropped to €33.7m from €42.8m during this period while net fell to €13.6m from €14.5m.
Vossloh CEO Oliver Schuster said: “Despite the difficult economic situation, we expect a significant increase in earnings contributions in the second half of the current fiscal year compared to both the previous year and the first half of 2022.
“Notwithstanding the current special situation, the market for rail infrastructure will grow steadily over the coming decades in the course of the inevitable shift from traffic to rail, and Vossloh will profit substantially from this.”
The company has now revised its outlook for fiscal 2022, projecting sales revenues €95m- €1.05bn, as against its earlier estimate of €925m- €1bn.
EBITDA margin is projected at 11.5%-13.5% while EBIT margin is expected to be 6%-8%.