Vossloh has seen its pre-tax earnings fall by more than 50 per cent after being forced to pay out an undisclosed damages claim.
Revenue fell from 31 million euro in 2012 to 12.5 million euro in 2013 despite sales increasing by 8.8 per cent, leading to a current order backlog worth 1.54 billion euro.
The drop has been attributed to a “double-digit million magnitude for damages claimed in a lawsuit involving the Transportation Systems business unit” and project delays.
Werner Andree, chief executive of Vossloh, said: “Our Q2 operating performance was only in part acceptable, and particularly the Transportation division failed to meet our expectations.
“High order intake in all business units indicates, however, that Vossloh’s products and services are highly popular.”
