Regulatory Information

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  • FAIVELEY TRANSPORT

    is pleased to invite you to

    its 2015/16 Full-Year Results presentation on May 26, 2016 at 2:00 pm Paris time

    The presentation will be in English and will be available via a live audio webcast on: http://www.faiveleytransport.com

     

    or via the link  : Faiveley Transport 2015/16 Full-Year Results

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  • Faiveley Transport Tours - Sales on March 31rst 2012:147 M€. Employees on March 31rst 2012: 656

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  • 30% increase in operating profit

     

     

    Consolidated income statement for the first half of 2012/2013

     

    IFRS (€ millions)

    30/09/2011

    30/09/2012

    % change

    Sales

    380.3

    461.1

    +21.2%

    Operating profit

    39.4

    51.4

    +30.3%

    As a % of sales

    10.4%

    11.1%

     

    Net profit- Group share

    19.9

    26.1

    +31.5%

    As a % of sales

    5.2%

    5.7%

     

    Earnings per share (€)

    1.42

    1.84

    +29.3%

     

     

     
    21% increase in half-year sales
     
    Sales for the first half of 2012/2013 were € 461.1 million, an increase of 21.2% compared to the first half of 2011/2012, comprising growth of 11.1% on a like-for-like basis, a 3.9% positive foreign exchange effect and a 6.2% group structure effect (integration of Graham-White).
     
    On a like-for-like basis, Group sales grew in all geographic regions. Europe grew by 10% thanks to favourable comparative basis, strong business activity in Italy, the delivery of new projects such as the Brussels RER and the London Underground. The Asia-Pacific region recorded growth of 8% on a constant foreign exchange basis, driven by a strong increase in projects in Russia and the deliveries of metro equipment in China. Lastly, the Americas region reported organic growth of 18% during the first six months, due to the ramp up in the delivery of Passenger projects and in spite of the slowdown in the freight segment since the 2nd quarter.
     
     
    Order Book
     
    At 30 September 2012, the order book totalled € 1,680 million, a year-on-year increase of 4.1% and a decline of 0.6% during the half-year. The Group continues to be awarded a regular flow of diverse orders, particularly in Europe (France, Germany, the UK and Italy), as well as in Russia and in China. 
     
    30% increase in OPERATING profit
     
    The Group’s operating profit was € 51.4 million for the first six months (11.1% of sales), compared to € 39.4 million in the 1st half of 2011/2012 (10.4% of sales), an increase of 0.7 percentage points in profit margin. This improvement was due to sales growth and controlled general and administrative costs, despite the decline in gross margin.
     
    During the first half of 2012/2013, gross profit was € 119.0 million (25.8% of sales), compared to € 105.4 million (27.7% of sales) in the previous financial year. An improved harmonisation in expense allocation between fixed costs and cost of sales accounts for 0.4 percentage points of the decline in gross margin, with no impact on operating profit. Excluding this effect, the 1.5 percentage point decline in gross margin was due to the ramp-up of certain major projects that involved significant start-up engineering costs and an unfavourable overall project mix.
     
    General, administrative and sales costs were € 59.0 million in the first half of 2012/2013, accounting for 12.8% of sales, compared to € 58.8 million, or 15.5% of sales in the first half of 2011/2012. On a constant perimeter and foreign exchange basis, these costs decreased by 2%, thanks to successful cost reduction on general and administrative expenses.
     
    Financial expenses fell to € 7.5 million, thanks to a reduction in debt expressed in euro and improved rate hedging, which offset additional interest costs related to the Graham-White acquisition debt.
     
    Overall, the Group’s consolidated net profit for the period was € 26.1 million, compared to € 19.9 million for the half-year to 30 September 2011, a year-on-year increase of 31.5%. Taking treasury shares into account, net earnings per share was € 1.84, compared to € 1.42 for the six months to 30 September 2011.
     
    Financial Position
     
    Net debt amounted to € 235 million at 30 September 2012, taking treasury shares into account.  This € 39 million increase over the first six months was mainly due to the payment of annual dividends (€ 12 million) and the seasonal reduction of the factoring programme in the first half (€ 26 million).

     

    During the first half-year, the increase in working capital requirements, excluding factoring, was primarily due to:
    the adjustment of inventory levels to activity volumes and projects expected in the second half;
    a significant increase in work-in-progress on projects linked to the engineering activity on the major programmes awarded to the Group over the last two years, which have not yet entered the delivery   phase; 
    the reduction of tax and social contribution liabilities during the first half-year.
     
    Outlook
    The Group is maintaining its objective of sales growth over the full financial year, with modest organic growth and the contribution of the acquisition of Graham-White. Europe should report sales growth over the full financial year, with a continued good level of deliveries.
     
    In North America, after a strong start to the year, the US freight car market appears to be slowing down to 40,000 to 45,000 new cars on an annualised basis in the second half-year (compared to initial forecasts of 53,000 for the year); the locomotive market remaining stable. 
     
    In Asia-Pacific, the effects of the new investment plans in China will probably be felt from 2013/14 onwards, and in Russia, the Group should benefit from buoyant growth in its projects during future quarters. 
     
    Lastly, the Group is maintaining its objective of improved profitability over the 2012/13 financial year. 
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  • Faiveley Transport finalises its acquisition of 100% of Graham-White, a US based rail equipment company.

    On February 3rd 2012, Faiveley Transport has successfully completed its acquisition of 100% of Graham White Manufacturing Company, a leading designer and manufacturer of compressed air drying technology and brake components for locomotives and rail transit markets. Graham-White's annual sales reached more than $70 million in 2011, of which 90% was generated in the USA. 

    Concerning this operation, 209,441 new Faiveley Transport shares, representing 1.45% of the group's share capital, have been issued to former Graham-White shareholders.
     
    This operation will reinforce Faiveley Transport’s position in the US and both companies will benefit from significant new opportunities thanks to an enlarged product range and complementary customer bases.
     
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    Record order book: up 20.9% year-on-year  
    Sales growth in the 3rd quarter
     

    Sales in € millions

    2010/2011

    2011/2012

    % change
    published

    % change
    organic

    Foreign exchange
    effect

       Q3: 1 Oct. to 31 Dec.

    215.6

    229.9

    6.7%

    5.9%

    (0.1%)

       9 months 2011/12

    626.8

    610.2

    (2.6%)

    (2.1%)

    (1.1%)

     
     
    Sales growth in the 3rd quarter

    Faiveley Transport generated sales of € 229.9 million in the 3rd quarter of the 2011/2012 financial year, an increase of 6.7% compared to the third quarter of the previous year. On a like-for-like basis, sales were up 5.9% over the quarter. 

     
    For the first nine months of 2011/2012, Group sales were € 610.2 million, a 2.6% decrease compared to the previous year, including a 2.1% decline on a like-for-like basis, a 1.1% unfavourable foreign exchange effect and a 0.6% positive Group structure effect. 
     
    On a like-for-like basis, this change in sales essentially reflects:
     
    growth in Europe in the third quarter due to a more favourable project delivery schedule in France and positive business activity in Italy and Northern Europe, which offset a weak Spanish market. Over nine months, Europe shows only a limited decrease of 2% on a like-for-like basis;
     
    a decrease in sales in the Asia-Pacific region (down 5%), particularly due to the decline of business in China, partly offset by strong growth in Russia and other countries in the region.  As previously announced, sales in China suffered a severe slowdown in 2011 in the locomotive and high speed markets. The metro market continued to thrive in 2011. Looking forward, the Ministry of Railways has confirmed a gradual restart of investments in 2012;
     
    strong growth in the Americas region (up 16%), due to the successful partnership with Amsted Rail and the recovery of the freight market in the US.
     
     
    20.9% year-on-year increase in the order book. 
     
    As of the end of December 2011, the order book was a record € 1,687 million, a 20.9% increase compared to 31 December 2010.  
     
    Over the last three months, the Group has been awarded the largest contract in its history by Siemens and Bombardier to supply braking systems, access doors and air conditioning units for the Deutsche Bahn ICx high speed trains. These orders are to equip 130 trains and their value is in excess of € 210 million. The order for air conditioning systems, which was received in January, is not included in the order book at the end of December. 
     
    Europe: In the third quarter, the Group was awarded a further order by Siemens relating to more than 1,500 access doors for the Munich metro, as well as three major air conditioning equipment orders with Stadler for almost 70 Flirt inter-city trains in Switzerland. An order for more than 750 interior doors for the Swiss double-decker intercity-trains was also awarded by Bombardier during the quarter.
    In France, Faiveley Transport will supply Bombardier and Alstom with the braking systems of 66 metro carriages as part of the renewal of the rolling stock of RATP.  This new, more energy-efficient metro will gradually replace trains on lines 2, 5 and 9 of the Paris metro network.
    In Sweden, public transport operators Västtrafik and Skanetrafiken have ordered approximately thirty Coradia Nordic (X61) regional trains from Alstom, the braking systems of which will be supplied by Faiveley Transport. 
     
    Americas: the Group continued to expand with the signing of three substantial orders with Alstom for the supply of doors to equip the Lima, Panama and Santo Domingo metros.
     
    Asia: Faiveley Transport was awarded its first contract with Mitsubishi, for air conditioning systems of 110 carriages of the Macao light rail system. In India, the Group will supply Bombardier with access doors and braking systems for 76 additional Movia carriages for the Delhi metro.
     
     
    Strategy: Faiveley Transport strengthens its North American business with the acquisition of Graham-White, a US-based brake components company.
     
    Faiveley Transport announced on 12 January the acquisition of a controlling interest in Graham-White Manufacturing Company, a leading designer and manufacturer of compressed air drying technology and brakes components for locomotives and rail transit markets.
     
    Graham‐White employs 300 people and operates six facilities across the United States, with a central manufacturing site located in Salem, Virginia. With 97 years of experience in the railway industry, Graham‐White supplies a wide range of high‐quality, engineered components such as air dryers, compressed air valves and parking brakes to locomotive manufacturers, transit car-builders and to the main railroad operators. 
     
    Annual sales are expected to reach US$70 million in 2011, of which over 90% are generated in the USA. A large share of revenues come from after–sales service and re-manufacturing.
     
    This transaction will enhance Faiveley Transport’s position in the US locomotive and customer service markets. It will bring both companies significant opportunities, particularly in North America, thanks to an enlarged product range and complementary customer bases.
     
    The transaction is expected to close in the first quarter of 2012 and will have an accretive impact on net earnings per share from the 2012/2013 financial year. It will be funded mainly through Faiveley Transport’s credit lines and partially through an issue of new shares to the sellers (issue of approximately US$15 million or 1.7% of capital). 
     
    Outlook
     
    The Group confirms its forecast for full-year sales, on a like-for-like basis, of between 0% and a 2% decline, with a return to growth in the next financial year.
     
    Next communication: 26 April 2012 (after close of trading), 2011/2012 annual sales.
     
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    Faiveley Transport signed an agreement to acquire a controlling interest in Graham-White, a leading designer and manufacturer of compressed air drying technology and brake components for locomotives and rail transit markets.

     
    Graham-White employs 300 people and operates six facilities across the United States, with a central manufacturing site located in Salem, Virginia. With 97 years of experience in the railway industry, Graham-White supplies a wide range of high-quality, engineered components such as air dryers, compressed air valves and parking brakes. Annual sales are expected to reach $70 million in 2011, of which 90% are generated in the USA. A large share of revenue comes from after market and re-manufacturing. 
     
    Faiveley Transport and Graham-White have worked together for several years as Faiveley Transport is the primary licensee for Graham-White’s air dryers in India. This transaction will enhance Faiveley Transport’s position in the US, notably in the locomotive market and customer services. The combination creates significant global opportunities, particularly in North America, thanks to an enlarged product range and complementary customer bases.
     
    “I am very pleased to welcome Graham-White into the Faiveley Transport group. Graham-White will reinforce our commitment to North American original equipment manufacturers and rail operators, which is fully in line with our strategic focus on the US.  The companies have similar cultures, and have already worked together successfully in the past, which will help to make it a very compelling combination” said Thierry Barel, CEO of Faiveley Transport.
     
    “The new organisation will create considerable cross selling opportunities that will benefit Graham-White and our customers; we will be well positioned for the locomotive and transit industry in the US and worldwide” explained Jim Frantz, President & CEO of Graham White.
     
    Jim Frantz will continue his role at Graham-White and will also lead the newly formed Faiveley Transport North America organisation. The transaction is expected to be closed in the first quarter of 2012. It will be funded mainly through Faiveley Transport’s credit lines and partially through an issue of new shares to the sellers (issue of approximately $15 million or 1.7% of capital). The transaction should have an accretive impact on Faiveley Transport’s earnings per share as of the 2012/13 financial year.
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    CONSOLIDATED INCOME STATEMENT FOR THE 1ST HALF OF 2011/12 
     

    IFRS (€ millions)

    30/09/2010

    30/09/2011

    % change

    Sales

    411.2

    380.3

    (7.5%)

    Operating profit

    49.7

    39.4

    (20.7%)

                as a % of sales

    12.1%

    10.4%

     

    Net profit - Group share

    29.0

    19.9

    (31.5%)

                as a % of sales

    7.1%

    5.2%

     

    Earnings per share (€)

    2.07

    1.42

    (31.1%)

     
     
    SALES OF €380.3 MILLION FOR THE FIRST HALF OF THE YEAR
     
    Despite slight growth in the second quarter, sales for the first half of 2011/12 were €380.3 million, a decline of 7.5% compared to the first half of 2010/11 and 6.3% on a like-for-like basis. These sales figures primarily reflect the continued decrease of business activity in Spain and a clear slowdown in China in the high speed and locomotive markets, since the ministerial team changes.  The project delivery schedule was less favourable in Europe in the first half of the year, and was only partly offset by the thriving US freight market. 
     
     
    HIGHEST ORDER BOOK EVER
     
    At 30 September 2011, the order book totalled €1,614 million, an increase of 18% compared to 30 September 2010 and 11% compared to 31 March 2011. This excellent performance was due to a combination of a continued regular inflow of diverse orders and to the largest contract in the Group’s history for the supply of braking equipment to the German high-speed trains ICx, manufactured for Deutsche Bahn by Siemens and Bombardier.
     
     
    HALF-YEAR RESULTS
     
    Gross profit for the first half of 2011/12 was €105.4 million, representing 27.7% of sales, compared to €115.8 million and 28.2% for the first half of 2010/11. This decline was due to the unfavourable volume effect in the first half.
     
    Sales and marketing, administrative and research costs increased moderately (up 2% compared to the first half of 2010/11), due to the Group’s increased presence in its strategic growth regions (Germany, Russia, China and the US), and significant tendering activity. 
     
    Operating profit was €39.4 million, representing 10.4% of sales, a decline of 21% compared to the previous financial year. The operating margin was adversely affected by lower sales during the first half, resulting in a lower absorption of fixed costs. 
     
    Financial charges increased to €8.1 million, compared to €6.0 million in the previous financial year, due to non-cash items relating to foreign exchange hedges on projects, whereas the cost of net indebtedness decreased slightly.
     
    As a result, Group net income was €19.9 million in the first half. Taking account of treasury shares, net earnings per share was €1.42, a decline of 31% compared to the previous year.
     
     
    FINANCIAL POSITION
     
    The net financial debt amounted to €213 million at 30 September 2011, an increase of €67 million during the period due to a strong rise in working capital requirements (up €48 million), to the annual dividend payments (€18 million) and the seasonal decrease in the receivables deconsolidation programme in the first half of the year (down €14 million).
     
    The change in working capital requirement was primarily due to:
    a significant increase in work-in-progress on projects, which mainly includes engineering activity on the major programmes awarded to the Group over the last 18 months, which have not yet entered the delivery phase;
    the adjustment of inventory levels in anticipation of significant activity volumes expected in the second half.
     
    The balance sheet remains strong with a net debt to EBITDA ratio of 1.7, in line with the level as of 30th September 2010.
     
     
    OUTLOOK
     
    For the second half of 2011/12, the Group foresees a positive organic growth. However, the recent postponement of several metro projects in China have led the Group to forecast stable sales, or even a slight organic decline of 2%, for the full year 2011/12.
     
    In China, the railway market is showing positive signs of a medium-term recovery following the publication of a new five-year plan, which confirmed substantial investment in railway equipment, and the support of central government to the funding of the Ministry of Railways. This gradual return to investment is expected from 2012 onwards, accompanied by stricter safety standards and equipment certification procedures. This trend should benefit Faiveley Transport’s systems for new Chinese train platforms.  Furthermore, the metro market continues to thrive, despite being subject to funding by local authorities.
     
    In Europe, the Group should benefit from a much more favourable delivery schedule in the second half of the year.
     
    In the US, Faiveley should benefit from continued growth in the railway freight market, due to the success of its braking equipment joint-venture with Amsted. 
     
    Shareholders’ agenda:
    Q3 2011/2012 sales: 26 January 2012 (after close of trading)
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    FIRST HALF-YEAR SALES 2011/12

    2.5% ORGANIC GROWTH IN THE SECOND QUARTER  
    RECORD ORDER BOOK: €1,614 MILLION

    Sales

    (€ millions)

     

    2011/2012

    2010/2011

    % change

    Of which organic

    Q1: 1 April - 30 June

    169.3

    202.9

    (16.5%)

    (15.4%)

    Q2: 1 July - 30 Sept.

    211.0

    208.4

    1.2%

    2.5%

    1st half-year

    380.3

    411.2

    (7.5%)

    (6.


    Sales growth in the second quarter

    Faiveley Transport generated sales of €211.0 million in the second quarter of the 2011/2012 financial year, an increase of 1.2% compared with the same period in the previous year.  On a like-for-like basis, sales were up 2.5% over the quarter.

    For the first half of 2011/2012 as a whole, sales were down 7.5% compared with the first half of 2010/2011, comprising a 6.3% decline on a like-for-like basis and a 1.7% negative foreign exchange effect.
    On a like-for-like basis, this change in sales essentially reflects:

    •    a decrease in sales in Europe (down 10%), mainly due to the economic crisis in Spain, the end of deliveries of major projects in France in 2010/2011 and an unfavourable project delivery schedule in the first half of the year;
    •    a slightly decreasing business activity in Asia-Pacific (down 2%) where a decline in China and India was partially offset by an increase in the other countries in the region.  Sales in China suffered a clear slowdown in the locomotive and high-speed train markets, both under the authority of the Ministry of Railway, following the ministerial team changes and the accident between two trains last July. The Chinese metro market, which is governed by municipal authorities, remains dynamic;
    •    the Americas reported a strong increase (up 11%) thanks to the success of the partnership with Amsted Rail, as well as the recovery of the freight market.


    Highest order backlog ever

    As of 30 September 2011, the order backlog totalled €1,614 million, up 11.1% over the first half and 18.3% over the last twelve months.  On a like-for-like basis, this growth reached 9.9% and 17.3% during the same periods.

    Over the first-half period, Faiveley Transport was awarded the largest contract in its history for the supply of braking equipment to the German high-speed trains ICx, manufactured for Deutsche Bahn by Siemens and Bombardier.
    An initial firm order was placed for 130 trains, for delivery from 2015 onwards, with an option for 90 additional trains.  In addition, the framework agreement reached between Siemens and Deutsche Bahn provides for a second option which would bring the total number of ICx trains to 300.
    This historical contract highlights Faiveley Transport’s ambition to develop a stronger presence in the German market.

    In the second quarter, aside from this major contract, the Group continued to record further significant and diverse orders across all regions.  
    In Europe, Faiveley Transport will supply to Siemens on-board doors for the Warsaw metro and air-conditioning systems for Eurostar trains.  The Group was also awarded by Alstom a platform screen doors contract for the extension of line 5 of the Milan metro.
    In Asia-Pacific, the Group won a contract for the delivery of braking systems and couplers for the Chennai metro, designed by Alstom, the air-conditioning equipment for the Guangzhou, Harbin and Wuhan metros, as well as the doors and air-conditioning systems for passenger trains in Adelaide, manufactured by Bombardier.  Finally, the Group will supply platform screen doors for the Riyad monorail line (Saudi Arabia).

    Financial position

    The decrease in sales for the first half of the year will mechanically impact the operational performance of that period.
    In addition, the Group reports an increase in net financial debt. The main factors that impact the cash flow position are the strong increase in engineering activity on the major projects awarded over the last 18 months, which have not yet entered into delivery phase, the adjustment of inventories to higher activity level over the coming months, as well as the seasonal reduction in the factoring programme.
     
    Confirmation of the sales guidance for the financial year

    The Group is maintaining its objective of slight growth in sales for the year, with the following outlook by region:

    •    the Americas should continue to grow, taking advantage of the success of the Joint Venture with Amsted and the growth in the freight market in the US;
    •    Europe should benefit from a more favourable delivery schedule for the second half-year;
    •    Asia-Pacific should benefit from a stronger growth in India and in the rest of Asia.  In China, the metro market should remain sustained whilst the precise timing of the recovery of the Ministry of Railway investments remains uncertain.

    Next communication: half-year results, 28 November 2011, after close of trading.




     

  • Faiveley Transport extends the maturity of its bank debt and strengthens its financial flexibility


     Faiveley Transport announces that on 27 July 2011 an amendment to the syndicated facility established in December 2008 was signed. This amendment was unanimously granted by the nine participating banks, renewing their trust in the Group’s credit worthiness.


    The total amount of debt financing remains identical, with an amortising term loan of € 343 million (amount at the end of June 2010) and a revolving facility of € 49 million.
     
    The main amendments were as follows:
    -    the extension of credit maturity by 2.5 years, to 23 June 2016, instead of 23      December 2013
    -    a more favourable amortisation profile, with mandatory annual repayments of € 35 million, compared to € 49 million previously
    -    new covenants providing additional flexibility, with maximum leverage (Net Debt / Equity) and gearing (Net Debt / Equity) ratios of 2.5x and 150%, respectively
    -    the extended use of the revolving facility to fund acquisitions
    -    the release of securities on shares of operating subsidiaries

    This refinancing transaction was carried out with favourable financial conditions and will allow the Group to benefit from increased financial flexibility over the next five years, to continue its development, both through organic growth and mergers and acquisitions.


  • 2011/2012 1STQUARTER SALES: €169 MILLION
    ORDER BOOK UP TO €1,503 MILLION

     

    (€ millions)

    1st quarter 2011/2012

    1st quarter 2010/2011

    % change published

    % change organic

    Sales

    169.3

    202.9

    (16.5%)

    (15.4%)


    SALES

    The Group reports sales of €169.3 million for the first quarter, a decline of 16.5% compared to the first quarter of 2010/2011, including a negative foreign exchange effect of 1.6%.

    The decrease in sales on a like-for-like basis was primarily due to:
    •    the impact of the economic downturn in Spain, where business activity is experiencing a significant decline,
    •    the completion of the delivery of major European programmes (AGC and TGV in France),
    •    unfavourable project delivery schedules in Europe,
    •    the postponement of orders and deliveries in China following the changes in ministerial team and the review of investment policies

    These elements were partially offset by a recovery in the original equipment business for the freight sector in the U.S., bolstered by the success of the partnership with Amsted.


    ORDER BOOK UP 3.4%

    At 30 June 2011, the order book amounted to €1,503 million, which was a 3.4% increase compared to the end of March, and a year-on-year increase of 11.7%. On a like-for-like basis, growth was 3.6% during the quarter and 15% year-on-year.

    In the first quarter, the Group was awarded a significant new contract in Russia with Metro Wagon Mash for the air conditioning systems of the Moscow underground. Among the main orders booked in the quarter, Faiveley Transport will provide the platform screen doors for the Copenhagen metro and the on-board door systems for Chennai metro, built by Alstom Transport. In China, the Group won the platform screen doors for the Changsha metro, the on-board door systems for line 6 of the Beijing metro and the brake systems for Harbin metro.

    Q1 FINANCIAL POSITION

    Taking into account the sales volume generated during the quarter, the operating performance was in line with the Group’s expectations. As in previous years, net financial debt increased during the first quarter, due to a reduction in sales of receivables and the rebuilding of inventories required for deliveries over the coming months.

    SIGNIFICANT EVENTS

    On 28 June 2011, a jury in New York Court rendered a verdict against Wabtec for compensatory damages of USD 18.1 million, plus interest, to Faiveley Transport for trade secret misappropriation, unfair competition and unjust enrichment. This decision may be subject to an appeal from Wabtec.

    Through this verdict, Faiveley Transport is compensated for the loss of market share it suffered in North America.

    OUTLOOK
    Against a backdrop of uncertainty on the restart of orders from the Chinese Ministry of Railways, the Group maintains its objective of a slight growth in sales over the full year. Sales should benefit from a more favourable timing of deliveries over the remainder of the financial year. Commercial activity remains particularly buoyant.
     

  • Faiveley Transport announces today the result of a jury trial in the United States.

    On June 28, 2011, a jury in New York rendered a verdict against Wabtec for compensatory damages in the amount of $18.1 million, plus interest, on account of both past and future damages for Wabtec’s liability to Faiveley Transport USA, Faiveley Transport Nordic, Faiveley Transport Amiens and Ellcon National for trade secret misappropriation, unjust enrichment, and unfair competition.
     
    This jury follows the New York Court’s decision on liability, issued on May 13, 2011, finding that Wabtec had misappropriated Faiveley Transport’s trade secrets in certain manufacturing drawings necessary to manufacture and build Brake Friction Cylinders and Actuators (the BFC TBU, PB and PBA) and that Wabtec continued to use tainted manufacturing drawings to solicit and obtain contracts in
    the North American market place.

    This decision may be subject to an appeal from Wabtec.
     
    Through this verdict, Faiveley Transport is compensated for the loss of market share it suffered in North America.
     
     
    Shareholders’ agenda:   
    25 July 2011 Q1 sales 2011/2012
    14 September 2011 Annual General Meeting
    24 October 2011 Half Year sales 2011/2012

  •  

    Faiveley Transport: 9% increase in profit from operations in financial year 2010/11

     

    IFRS sales (€ millions)

    31/03/2011

    31/03/2010

    % change

    Sales

    913.9

    875.9

    4.3%

    Profit from recurring operations *

    129.8

    118.9

    9.2%

    Operating profit

    126.7

    118.2

    7.1%

               As a % of sales

    13.9%

    13.5%

     

    Net profit - Group share

    75.7

    71.1

    6.4%

               As a % of sales

    8.3%

    8.1%

     

    Earnings per share (€) **

    5.43

    5.04

    7.8%

     

    (*) excluding restructuring costs and gains/losses from disposal of assets

    (**) after elimination of treasury shares

    Sales growth and strong increase in the order book

    Faiveley Transport reported revenues of € 914 million for financial year 2010/11, an increase of 4.3% compared to the previous year.  On a like-for-like basis, Group sales grew slightly (organic growth of 0.5%), while foreign exchange effects contributed to a positive effect of 3.8%.

    The slight organic growth in sales reflected strong growth in the Asia-Pacific region (up 25%), buoyant sales in the Americas (up 7%), which offset a decline in Europe (down 7%).

    During the financial year, the order book grew substantially by 11.6% to a record € 1,453 million at 31 March 2011. With business activity remaining buoyant in all markets, the Group continued to be awarded major contracts, in particular on new platforms such as Regio2N trains in France (doors, pantographs, brakes), Swiss intercity trains (air conditioning and couplers), V300 Zefiro high speed trains in Italy (braking systems), suburban trains in Chicago (power converters), the Toronto tramway (brakes, doors, air conditioning and pantographs) and the Moscow underground (air conditioning).

    Changes in Group structure

    In October 2010, Faiveley Transport and Amsted Rail, the leading manufacturer of bogie equipments for freight cars, established a joint venture in the US dedicated to braking systems for the railway freight market. 

    In February 2011, the Group acquired a majority holding in the Swiss company Urs Dolder AG, which specialises in railway heating solutions, and in March 2011 it acquired the remaining 25% interest in its Czech subsidiary Faiveley Transport Lekov.

    Growth in group earnings

    Gross profit grew by 5.8% during the financial year to € 261.5 million and represented 28.6% of sales, compared to 28.2% in the previous year. This progress was due to the operational improvements (in productivity and purchases) and to a favourable activity and project mix.

    The rise in sales and marketing costs, owing to the Group’s growth policy, was partly offset by savings on general and administrative costs.  The research and development expenses remained stable during the year.

    Profit from recurring operations amounted to € 129.8 million, an increase of 9.2% compared to the previous year, representing 14.2% of sales, compared to 13.6% in 2009/2010.  This growth in profit  margins benefited from the reclassification of CVAE as income tax, with a favourable effect of € 1.9 million in 2010/2011, a 0.2% rise in operating margins.

    Net profit – Group share reached € 75.7 million, an increase of 6.4% compared to the previous year. Taking into account treasury shares, net earnings per share increased by 7.8% to € 5.43.

    Net debt at 31 March 2011 totalled € 146 million, a decrease of € 69 million compared to the previous year, which reflected the Group’s significant cash generation.  The balance sheet structure remains solid, with a net debt to EBITDA ratio of 1.1x.

    Stable dividend

    Given the strong increase in dividend voted last year (up 20%), the Management Board will propose to the Annual General Meeting, to be held on 14 September 2011, that a dividend of € 1.20 per share be distributed, the same as last year.

    Outlook

    The medium-term outlook for growth of the railway equipment market should remain favourable with the growing weight of new geographic regions, such as India and Russia, the launch of new platforms in Europe, in particular in Germany (ICEx programme) and the UK (Thameslink, IEP) and the expected recovery in the US freight market.  In China, the review of the railway programme by the new Chinese authorities, in particular for very high speed trains and also in terms of volumes of locomotives, will likely result in the postponement of orders and deliveries over the coming months, before a recovery which will eventually provide the Group with longer-term opportunities.

    In this context, Faiveley Transport will continue its global expansion strategy, giving priority to quality and technological innovation, supported by increased customer proximity.  This strategy will be reflected on a geographic level by a focus on markets that provide the Group with the greatest potential (China, Germany, Russia and freight in the US).

    Taking into account the above elements and the increase in duration of the order book, the Group forecasts slight sales growth over the current financial year, on a constant foreign exchange basis.

     

     

    Shareholders’ agenda:

     

    25 July 2011

    Q1 sales 2011/2012

    14 September 2011

    Annual General Meeting

    24 October 2011

    HY1 sales 2011/2012

     

     

  • Faiveley Transport: Strong increase in order book and growth in revenues during financial year 2010/2011
     
     
    (€ millions)
    2009/2010
    2010/2011
    % Change
    as reported
    Organic growth
    Forex effects
    Q4: 1 Jan to 31 March
    262
    287
    +9.4%
    +6.5%
    +2.8%
    Annual revenues
    876
    914
    +4.3%
    +0.5%
    +3.8%
     
     
     
     
     
     
    Order book
    (end of period)
    1 302
    1 453
    +11.6%
    +11.3%
    -0.2%
     
     
    Sales growth in the 4th quarter and annual revenues in line with expectations
     
    Revenues for the fourth quarter 2010/11 stood at € 287 million, up 9.4% from the fourth quarter of 2009/10. At constant exchange rates and group structure, revenues grew by 6.5% during the quarter.
     
    Consolidated revenues for the full year 2010/11 totalled € 914 million, an increase of 4.3% compared to the previous financial year. At constant exchange rates and group structure, group revenues grew slightly (+0.5% organic growth), in line with forecasts announced at the start of the financial year. Currencies contributed to a favourable foreign exchange effect of 3.8%.
     
    The slight growth in consolidated revenues, at constant exchange rates and group structure, reflects contrasting trends by region:
    -          Strong growth in the Asia-Pacific region (up 25%), driven by China and India;
    -          Positive uptake in the Americas (up 7%), thanks to a strong performance in Brazil and the start of recovery in the US freight market;
    -          Declining sales in Europe (down 7%), particularly in Spain (impact of the economic crisis) and in France (completion of delivery of major programmes, such as the AGC).
     
    Customer Service activity reports organic sales growth of 5%, due to a growing installed base of equipment and thanks to the group’s strategy of extending the range of services offered to railway operators. Original equipment revenues declined by 2%, primarily due to the postponement of delivery timetables of certain customers’ programmes.
     
     
    Order book increase by 12% year-on-year
     
    The order book at 31 March 2011 amounted to € 1,453 million, compared to € 1,302 million at 31 March 2010, representing a year-on-year increase of 11.6% (up 11.3% at constant exchange rates and Group structure).
     
    In the fourth quarter, the Group was awarded major contracts, primarily in Europe and North America:
    -          In Europe, air conditioning units and couplers for Swiss intercity trains built by Bombardier (436 cars) and braking systems for the Italian V300 Zefiro high speed trains developed by the Ansaldo-Bombardier consortium (400 cars);
    -          In North America, the supply of on-board doors for 469 cars for Montreal underground network, built by the Alstom-Bombardier consortium and
    160 auxiliary converters to Nippon Sharyo for suburban trains in Chicago.
     
    Furthermore, during the financial year 2010/11 as a whole, the Group was awarded a large number of other significant contracts, notably on new train platforms.
    -          In Europe, the supply of doors, pantographs, brakes and electronics for
    129 Regio2N trains (“Porteur Hyper Dense”) built by Bombardier for SNCF;
    -          In Asia, braking systems for 160 Datong locomotives, air conditioning systems for the line 12 of the Shanghai underground and optional orders for the Delhi underground (brakes, air conditioning and on-board doors);
    -          In Russia, air conditioning systems for 200 RIC sleeping cars built by Siemens and TZD and air conditioning equipment for 100 cars for the Moscow underground for Metro Wagon Mash;
    -          In North America, the supply of brakes, on-board doors, air conditioning systems and pantographs for 182 trains for the extension of the Toronto tramway (Metrolinx), built by Bombardier.
     
     
    Changes to the Group structure during the financial year
     
    Since October 1st 2010, Faiveley Transport and Amsted Rail, leading manufacturer of bogie equipments for freight cars, are partners in a joint venture dedicated to AAR-approved braking systems for the railway freight market. Faiveley Transport contributed to this new company its related assets and experience in engineering, project management and industrial manufacturing for the US freight market. The joint venture is 62.5% owned by Faiveley Transport.
     
    In the fourth quarter of 2010/11, Faiveley Transport announced the acquisition of 80% of the Swiss company Urs Dolder AG, specialised in railway heating solutions, and the acquisition of the remaining 25% minority interests in its Czech subsidiary, Lekov, which is a centre of competence for pantographs and electromechanical equipment.
     
     
    Solid growth outlook
     
    Commercial activity should remain dynamic during 2011/12 financial year. In Europe, major tenders are expected over the coming quarters, in particular in Germany (ICEx programme) and in the UK (Thameslink, IEP). The US market should benefit from a strong recovery in new freight cars investments. In Asia, the Indian market should continue to grow, in particular with the extension of the Delhi underground network and the launch of similar projects in other cities. In China, the recent change of team at the Ministry of Railways may lead to the postponement of orders in coming quarters, before restarting with different priorities in terms of platforms, speed or technologies.
     
    The significant number of contracts awarded on new train platforms and the decrease in repeat orders resulted in an increase in the duration of the order book. The engineering, testing and certification phases for these new programmes take an average of 18 months to complete.
     
    In this context, the Group forecasts moderate sales growth, at constant exchange rate and Group structure, for financial year 2011/12, followed by an acceleration in subsequent years. 
     
     
    Financial agenda: 14 June 2011 (after close of trading) Annual Results.
                                      15 June 2011 Annual Results Presentation
  • Faiveley Transport’s Supervisory Board met on 1 April 2011 to confirm the departure of Robert Joyeux, President of the Management Board and Chief Executive Officer of the Group, who retired from his positions on 31 March 2011.

    The Supervisory Board, the management and all of the Group employees would like to greatly thank Robert Joyeux who contributed extensively to the growth and current success of the Group for over 10 years.

    The Supervisory Board has nominated Thierry Barel, former Chief Operating Officer, as President of the Management Board and Chief Executive Officer of the Group.

    The Supervisory Board has also nominated Guillaume Bouhours, Chief Financial Officer of the company, as a member of the Management Board.  

  • http://www.faiveleytransport.com/sites/default/files/financial-information/uk/communiques/2770099.mp3
    Faiveley Transport: Growth of the order book and sales during the 3rd quarter
     
    Saint-Denis,France  26th January 2011
     
    € millions
    2009/2010
    2010/2011
    Change
    published
    Organic growth
    Currency effects
    Q3 : 1 Oct. – 31 Dec.
    199.0
    215.6
    +8.4%
    +3.8%
    +4.6%
    9 months
    613.6
    626.8
    +2.2%
    -2.1%
    +4.2%
     
     
    Sales growth in the 3rd quarter
     
    Faiveley Transport registered sales of €215.6M during the 3rd quarter 2010/11, an increase of 8.4% compared to 3rd quarter 2009/2010. At constant exchange rates and group structure, sales grew by 3.8% during the quarter.
     
    Over the first nine months of financial year 2010/2011, Group sales are recorded at €626.8M, an increase of 2.2% compared to the previous year. Activity growth in Asia, and to a lesser extent in North and South America, compensates for a sales decrease in Europe.
     
     
    Order book increased by 11% year on year
     
    The order book reached €1 396M at end of December 2010, an increase of 11% compared to 31 December 2009.
     
    During the third quarter, the Group reinforced its position on the North American market with two large contracts with Bombardier Transport, for Toronto and New Jersey Transit. The Toronto tramway contract includes the supply of air conditioning units, pantographs, access doors and hydraulic brake systems for 182 trams. Delivery is scheduled to begin mid 2011 for a 5 year period. For the New Jersey Transit Authority, Faiveley Transport will supply door systems for 100 passenger cars, with an option for the following 79 cars.
     
    Faiveley Transport has also pursued its development in Russia over the quarter by signing several significant orders. Faiveley Transport will supply the air conditioning systems for Siemens Mobility and the Russian carbuilder Tverskoy Vagonostroitelny Zavod (TVZ) for 200 RIC sleeper coaches for the Russian railways (RZD) from mid 2011. The Group has also won a contract for air conditioning equipment for 100 cars for the Moscow Metro with Metro Wagon Mash.
     
     
    Financial situation for the 3rd Quarter
     
    The operational activity and the financial situation are in line with Group expectations
     
     
    Stable sales confirmed for 2010/2011
     
    The Group confirms its forecast for stable sales in 2010/11 at constant exchange rates and Group structure, before a return to growth next year.
     
    Financial calendar: 27 April 2011 (after closing), 2010/2011 annual sales. 
  • MISE A DISPOSITION DU DOCUMENT DE REFERENCE
     
     
     
     
    A compter d’aujourd’hui, le document de référence du Groupe Faiveley pour les comptes arrêtés au 31 03 09 est consultable sur leur site www.faiveleytransport.com (onglet Institutionnel/Information réglementée/Publications/Rapports d’activité/Document de référence 2008-2009.)
     
     
     
    Prochain rendez-vous :                30 novembre 2009 > Resultats Semestriels
  • http://www.faiveleytransport.com/sites/default/files/financial-information/uk/communiques/2749214.mp3
    Faiveley Transport: Half-year earnings in line
    with expectations : solid outlook
     
    Consolidated Income Statement First Half 2010/11
     
     IFRS standards, in € million
    30/09/2009
    30/09/2010
    r%
    Sales
    414.7
    411.2
    -0.8%
    Operating income
    51.7
    49.7
    -3.8%
                Operating margin (% sales)
    12.5%
    12.1%
     
    Net income group share
    30.5
    29.0
    -5.0%
                Net margin (% sales)
    7.4%
    7.1%
     
    Earnings per share (in €)
    2.17
    2.07
    -4.7%
     
    Revenues in line with our expectations — Continued growth in order book
     
    In the first half of 2010/2011, Faiveley Transport revenues are recorded at €411.2M, marginally down on the same period last year (-0.8%). Exchange rates had a favorable effect of 4.1% over the period. This reflects the delivery of some projects being postponed, notably in Europe, partially compensated by dynamic activity in Asia.
     
    The order book reached €1,363M at end September 2010, an increase of 14% as compared to the €1,195 M at end September 2009, and of 4.8% compared to March 31, 2010 (€1,301 M). This performance is due to the combination of continuing and regular streams of diversified OEM orders, repeat orders and aftermarket, as well as major new contract wins such as Regio 2N (“Porteur Hyper Dense”) built by Bombardier Transport, and the Regiolis train sets (“Porteur Polyvalent”) built by Alstom Transport for the SNCF.
     
     
    Half-year Results
     
    First half 2010/11 gross margin was €115.8 M (28.2% of sales), down 1% compared to first half 2009/10 (€116.9 M), with a stable rate of gross margin (28.2%).
     
    General, selling, administrative and research/development expenses were virtually flat (+1% vs. first half 2009/10), with commercial expenses increasing in a context of a larger number of tenders, compensated by a reduction of administrative expenses.
     
    First half operating profit was €49.7 M, representing 12.1% on sales, down by 3.8% on the previous financial year.
     
    Adjusted for treasury shares, net earnings per share were €2.07, down 4.7% on first half 2009/10.
     
     
    Financial Structure
     
    Net debt on September 30, 2010 was €225 M, a rise of €9 M over the half-year, mainly due to the seasonal decrease in the receivables deconsolidation programme in the first half (-30 M€). The balance sheet structure is solid and the ratio of net debt to EBITDA stands at 1.8.
     
     
    Outlook: stable sales confirmed for FY 2010/11
     
    The financial crisis affecting public spending in Europe should not have a significant impact on the Group, whose business continues to benefit from its diversified geographical exposure.
    New market opportunities are arising, notably in China, India and Russia where spending on rail services and infrastructure are intensifying. Finally, the recovery in the freight market, both in the United States and worldwide, should contribute to Faiveley Transport’s growth in the medium term, thanks to the alliance newly signed with Amsted (October 2010).
     
    The Group confirms overall stable revenues for 2010/11, with a return to growth next fiscal year.
     
    Assured succession for the head of the Group
    Robert Joyeux, with the full backing of the Supervisory Board, decided to resign from his operating responsibilities at the end of this financial year. Thierry Barel, Chief Operating Officer, recruited with this perspective in July 2009, will replace him as Group Chief Executive Officer. Robert Joyeux will become a member of the Supervisory Board.
     
     
    Financial calendar:
    3rd quarter sales 2010/2011: January 2011 (after trading)
  • http://www.faiveleytransport.com/sites/default/files/financial-information/uk/communiques/2743481.mp3
     
    Faiveley Transport : First half sales in line with expectations
    Growth in Order book
     
    25th October 2010
     
    In € millions
    2009/2010
    2010/2011
    Variation
    Published
    Variation organic
    Perimeter effect
    Q1 :1st April – 30 June
    216.1
    202.9
    -6.2%
    -9.4%
    +3.2%
    Q2 : 1st July - 30 Sept
    198.5
    207.9
     
    +4.7%
    -0.2%
    +4.9%
    1st Half
    414.6
    411.2
    -0.9%
    -5.0%
    + 4.0%
     
     
    Activity in line with expectations
     
    During the 2010/2011 second quarter, Faiveley Transport recorded sales of €207.9m, an increase of 4.7% compared to the 2009/2010 second quarter. At constant exchange rate and perimeter, sales have been stable for the quarter.
     
    For the first half of 2010/2011, sales are recorded at €411.2m, a decrease of 0.9% compared to the previous year, and of 5% at constant exchange rate and perimeter. This reflects the delivery of some projects being postponed, particularly in Europe, partially compensated by the dynamic activity in Asia.
     
     
    Continued growth in the order book
     
    The order book was recorded at €1,363m in September 2010, an increase of 14% compared to 30 September 2009.
     
    During the semester, the Group signed the biggest order in its history with the Regio 2N trains ("Porteur Hyper Dense") built by Bombardier Transport for the SNCF. Faiveley Transport will supply doors, pantographs, braking systems and electronics for 129 trains, with a contract value of €70 million. The options could bring this whole platform to 860 trains. First deliveries should begin mid 2011.  
     
    Over and above this major contract, Faiveley Transport has continued to take varied orders in each of its geographical zones. These orders include the supply of equipment for the air conditioning on trains for Sochi, in Russia, built by Siemens, the supply of braking systems for the extension of the Delhi metro and for the braking equipment of 160 locomotives for the Chinese car builder Datong.
     
    Stable sales confirmed for 2010/2011
     
    As announced at the beginning of the year, the Group anticipates sales which should be stable overall throughout the year, with a return to growth next fiscal year.
     
    Financial Calendar
    30 November 2010 (after closing of Stock Exchange), First half results 2010/2011.
  • Paris, October 6, 2010 – On October 1, 2010, Faiveley Transport USA and Amsted Rail finalized a joint venture, Amsted Rail – Faiveley LLC, based in Greenville, South Carolina. This new joint venture had been previously announced in July 2010.
     
    Faiveley Transport brings to this new company a wide range of AAR-approved braking equipment for the freight-car market, as well as its related assets and experience in engineering, project management, and industrial manufacturing. These assets were previously held by its American subsidiary, Ellcon-National, which will retain primarily its transit-car business.
    Amsted Rail brings to the joint venture access to its commercial network in the United States and around the world, as well as a portfolio of brake products that complements the contributions of Ellcon-National.
     
    Amsted Rail, the world leader in the manufacture of undercarriages for freight cars, can now offer its customers via this joint venture a combined offer of bogies and brake equipment. The joint venture will enjoy privileged access to the American freight market and to export markets—such as India, Russia, Brazil, and South Africa—where Amsted Rail already does business.
     
    Faiveley Transport USA holds 67.5% of the joint venture and will control management appointments. Amsted Rail reserves the right to increase its ownership of 32.5% up to no more than 49%, through the reinvestment of dividends received from the joint venture.
     
    This ambitious partnership between two major global players in the railway market will allow them to accelerate their growth through more efficient and competitive offers to their customers in the life cycle of freight rolling stock.
     
    In addition, this new subsidiary should benefit from the expected rebound in the North American freight market. After a significant decline in demand of 14,000 cars in 2010, the market expects renewed volume of 30,000 cars in 2011, and as many as 50,000 cars in 2012.
     
    "This joint venture provides freight-car manufacturers with the widest range of components and undercarriage equipment systems on the market. This strategic agreement will accelerate Faiveley Transport‘s development on the market of freight braking systems, both in the United States and in high-potential international markets—such as India and Russia—and provides a powerful commercial support" stated Robert Joyeux, CEO of Faiveley Transport.
     
    Financial calendar: 25 October, 2010: Interim sales
  •  

    MISE A DISPOSITION DU DOCUMENT DE REFERENCE
     
     
     
    A compter d’aujourd’hui, le document de référence du Groupe Faiveley pour les comptes arrêtés au 31 03 10 est consultable sur leur site www.faiveleytransport.com (onglet Institutionnel/Information réglementée/Publications/Rapports d’activité/Document de référence 2009-20010.)
     
     
     
    Prochain rendez-vous :                30 novembre 2010 > Résultats Semestriels
  • Ellcon National, Faiveley Transport's American subsidiary, and Amsted Rail, world leading manufacturer for undercarriage rail components for the freight market, announced the creation of a joint subsidiary in which Faiveley Transport will have majority ownership.
     
    "This new company will be fully operational on October 1, 2010. It will enable freight car manufacturers to have access to the widest range of components and undercarriage equipment systems”, said Robert Joyeux, Chairman and Managing Director of Faiveley Transport. “This strategic agreement gives Faiveley Transport direct access to the global freight market through Amsted Rail. We will have the opportunity to further discuss this agreement at the end of September when the new joint venture will become operational.”
     
    This union between two world leaders puts them in an ideal position to provide outstanding technical solutions that will improve the performance of trains and increase savings during the lifecycle of rolling stock.
     
    “Ellcon National’s existing brake components portfolio will be integrated with Amsted Rail’s extensive undercarriage systems, enabling railcar designers and their customers to access an unprecedented component engineering team”, explains Mr. John Wories, President of Amsted Rail.
     
    The alliance between these two century-old companies, with their technical expertise and commercial synergies, will significantly accelerate their growth on the world market.
  • http://www.faiveleytransport.com/sites/default/files/financial-information/uk/communiques/2731878.mp3

    1st Quarter 2010/2011: Sales €203m

    Order Book  €1,346m

    and significant REGIO 2N contracts with Bombardier

     
     
     
    Euro Millions
    1st Quarter 2010/2011
    1st Quarter 2009/2010
    Variation published
    Variation organic
    Exchange effect
    Sales
    202.9
    216.1
    -6.2%
    -9.4%
     +3.2%
     
     
     
    Sales in line with expectations
     
    The Group records sales for the 1st quarter at €202.9m, in line with its expectations, a variation of -6.2% in comparison with the 1st quarter 2009/2010. Exchange rate effect is  +3.2%.
     
    The variation in sales, in comparison with the previous year, is due to the base effect of the 1st quarter 2009/2010, which had recorded an organic growth of 13.6%. This change is mainly due to the profile of the activity in Europe; Asia was, for its part, growing.   
     
    Order book: +19.2 %
    At 30 June 2010, the order book is registered at €1,346m, an increase of 19.2% in comparison with 30 June 2009.
     
     
    Highlights of the quarter
     
    The Group has won the biggest contract in its history for the supply of brakes, doors, pantographs and electronics for the Regio 2N train (“PHD”) built by Bombardier Transport for the SNCF, for an overall project of 860 trains.
     
    A first partial order of €63m has been awarded for 129 trains, which has not been integrated into the order book of the 1st quarter 2010.
     
    Commercial activity is still buoyant. Numerous projects are emerging, as much in Europe, as in China, North America and India.
     
     
    Group’s Financial status in first quarter
     
    The result for the 1st quarter has met Group expectations. The Group’s net debt is improving, before seasonal reduction of factoring.
     

    Profile of the activity for the year
     
    Faiveley Transport anticipates a stable level of activity compared to the previous year, before a significant upturn expected next year. To date, the Group foresees a more even distribution of sales between the four quarters of the year compared to last year.
     
     
     
    Upcoming events:    13 September 2010:General Shareholders’ Meeting
    25 October 2010: Interim Sales
     
  • http://www.faiveleytransport.com/sites/default/files/financial-information/uk/communiques/2724925.mp3
    Annual results 2009/2010
     
    Order book +14.2%
    Earnings per share +24.1%
     
     
    IFRS, in € millions
    31/03/2010
    31/03/2009
    %
    Sales
    875.9
    852.0
    +2.8%
    Operating profit
    118.2
    113.8
    +3.9%
         as % of sales
    13.5%
    13.4%
     
    Net profit
    74.9
    71.2
    +5.1%
    Net profit – group share
    71.1
    51.5
     
         as % of sales
    8.1%
    6.0%
     
    Earnings per share (in euros)*
    5.04
    4.06
    +24.1%
    * after elimination of treasury shares
     
     
     
    Continued growth in the order book: +14.2%

    The worldwide railway equipment market remained strong throughout the 2009/2010 financial year, despite the difficult economic climate. The market was sustained by unflagging structural demand, with many large projects launched in Europe and Asia. Faiveley Transport signed a number of large contracts, including €40 million for the Toronto tramway (braking systems, doors and air conditioning), €45 million for the first phase of 100 "Porteur Polyvalent" trains for the SNCF (braking systems and doors; €30 million of this contract figured in the order book on 31 March 2010), €40 million for 70 very high speed Zefiro 380 trains in China (air conditioning and pantographs), and €35 million for the Brussels regional trains (doors and air conditioning). Faiveley Transport also continued to receive a very diverse portfolio of orders spanning all of its markets.
     
    Faiveley Transport’s business during the period reflects these conditions, with:
    -        moderate sales growth, in line with our forecasts. Sales for the financial year totalled €875.9 million – an increase of 2.8% over the previous year, or 1.9% with constant exchange rates and group structure;
    -        strong growth in the order book, which reached €1,301 million, the highest level in the history of the Group. Compared to the figure of €1,139 million on 31 March 2009, this represents an increase of 14.2%.


     
    Increased Group profits

    Thanks to flexible manufacturing and control of structural costs, operating profit increased by 3.9% over the preceding financial year, to €118.2 million. The operating margin was 13.5%.
     
    Earnings per share rose by 24.1%, due in large part to the strong accretive effect (+32%) of the shareholding structure reorganisation in December 2008.
     
    These results permitted the Group to reduce its debt substantially (-€76 million), putting the Group in a sound position to seize opportunities for external growth.
     
     

    Dividend: €1.20 per share, an increase of 20%

    The Management Board is confident in the outlook for the Group, and will propose the payment of a dividend of €1.20 per share at the annual General Meeting on 13th September 2010: an increase of 20% compared with 31 March 2009. The dividend will be paid out from 17 September 2010 onwards.
     

    Favourable medium-term outlook

    Compared to repeat orders, new train model orders generate important up-front engineering for equipment sales which will start at least 12 months later. Due to a higher number of new projects, the Group forecasts stable sales over the 2010/2011 fiscal year, before an expected substantial increase over the following years.

    Despite rising pressures on the public finances of western economies, the railway sector will continue benefitting from strong structural demand for public transit, increasing environmental awareness, and rapid economic growth in new economies – particularly China, India, Brazil and Russia. Growth in these countries creates new needs and new players.
     
    Faiveley Transport’s links with a growing number of railway manufacturers and operators gives it substantial room to increase its market share.
     
    The Group will focus its efforts on expanding its global presence and promoting its entire line of products and systems. The Group’s goal is to become a leading supplier in all local markets.
     
    While monitoring local fiscal measures closely, the Group remains confident that sales growth will continue in the medium term. The Group forecasts steady sales in the 2010/2011 financial year, with dynamic commercial activity.
     
     
    Upcoming events:    26 July 2010               1st quarter 2010/2011 sales
                                13 September 2010      General Shareholders’ Meeting
     
     
    Note on published information:
     
    The annual results were reviewed by the Supervisory Board at its 11 June 2010 meeting. The statutory auditors have completed their audit, and their audit report is currently being prepared.
    The recording of the analysts’ telephone conference, held in English on Monday 14 June 2010, and the documents presented to the market on 15 June 2010 at 08:30 will be posted on the Group’s website at that time. 
  •  
     
    SUSTAINED PROGRESSION IN ORDER BOOK: +14.2%
     
    SALES GROWTH IN LINE WITH OBJECTIVES
     
    GOOD COMMERCIAL OUTLOOK 2010-2011
     
     
    Saint-Denis, 26 April 2010
     

     

    € million
    2009/2010
    2008/2009
    Variation published
    Variation organic
    Perimeter effect
    Q1 : 1 April - 30 June
    216.1
    184.3
    +17.2%
    +13.6%
    +3.2%
    Q2 : 1 July - 30 Sept
    198.5
    199.4
    -0.5%
    -1.1%
    +0.8%
    Q3 : 1 Oct – 31 Dec
    199.0
    224.5
    -11.4%
    -10.4%
    -0.1%
    Q4 : 1 Jan – 31 March
    262.5
    243.8
    +7.7%
    +6.9%
    +0.1%
    Year
    876.1
    852.0
    +2.8%
    +1.9%
    +0.9%
     
     
    SALES GROWTH : +2.8%
     
    For the 4th quarter of the year, sales were recorded at €262.5m, an increase of 7.7% compared to the 4th quarter of the previous year. At constant exchange rate and scope of consolidation, this is a change of +6.9%. Delays in car builders' projects during the 3rd quarter have been absorbed for the most part.
     
    As announced at the beginning of the year, sales for the year registered limited growth at €876.1m. At constant exchange rate and scope of consolidation, this represents an increase of +1.9%.
     
     
    SUSTAINED GROWTH OF THE ORDER BOOK: + 14.2%
     
    As in the previous year, 2009-2010 records sustained growth of the order book at €1,301m, compared to €1.139m at 31 March 2009, an increase of 14.2%.
     
    Over the year, the Group has again won some large contracts, in particular the Toronto tramway with Bombardier Transport for USD $40m, and more recently the contract ‘Porteur Polyvalent’ with Alstom Transport for the SNCF. This framework contract for the first 200 trains includes a firm 100 train order, for a value of around €45m, of which €15m were recorded in the Order Book of 31 March 2010. This order includes braking equipment, doors and electronic systems.
     
    Over and above these large contracts, the Group continues to win very varied orders in all of its markets.
     
     
    SOLID OUTLOOK IN THE MID TERM
     
    The market structure is going through an unusual phase, with a drop in repeat orders for trains, which are a few years old, and an increase in the launch of new types of train, representing larger contracts, for which Faiveley Transport has already been successful.  Considering the tender offers that are currently underway, the Group is counting on good commercial activity for 2010/2011.
     
    The contracts won on the new types of train generate a lot of engineering activity in a first stage, for equipment that will be sold at least 12 months later. Due to this fact, the Group foresees stable sales for 2010-2011, before returning to strong sales growth in the consequent years.
     
    China remains the market showing the most solid outlook for growth where the Group is reinforcing resources to win significant market share.  
  •  Order Book: + 17.4 %
    Increase in sales over the year
     
    Sales Q3 2009/2010
     
     
     € Million
     
    2009/2010
     
     
    2008/2009
     
    Change
    published
     
    Change
    organic
     
    Perimeter effect
     
    Q3 :
    1 Oct – 31 Dec
     
    199.0
     
     
    224.5
     
    -11.4%
     
    -10.4%
     
    -0.1%
     
    9 months
     
    613.6
     
    608.2
      
    +0.9%
     
    -0.1%
     
    +1.2%
     
     
    Target to increase sales over the year maintained
     
    Faiveley Transport recorded sales of €199M over the third quarter of the 2009/2010 year, 11.4% less than Q3 sales the previous year, which had recorded a strong increase (+32.3%). At a constant exchange rate and scope of consolidation, this is a decrease of -10.4%. The drop in sales over this quarter is due to changes in customers’ delivery schedules.
     
    Over the first nine months of the 2009/2010 year, the Group’s activity stood at €613.6M, an increase of 0.9% compared to the same period of the previous year. This activity is stable at constant exchange rate and group structure.
     
    Changes in customers’ delivery schedules should benefit the final quarter of the year, which is expected to record a significant increase compared to the same period of the previous year. Consequently, the Group maintains its target of an increase in sales over the entire year.
     
    An increase in the Order Book of 17.4%
     
    The Order Book records a further increase to €1,259M, a growth of 10.5% compared to 31st March 2009, and of 17.4% compared to 31st December 2008.
     
    Commercial activity is very intense; numerous large tender offers are currently taking place with decisions expected in the coming year.
     
    Financial situation for the 3rd Quarter
     
    The operational activity and the financial situation are in line with Group expectations.
     
    Important business and events during the past quarter
     
    The Group has continued to take orders of a diverse nature. Commercial and geographical successes over the period include a maintenance contact for the servicing of freight wagons for 5 years with AAE Switzerland and an important contract for platform doors for the Singapore metro.
     
     
    The ICC Court of Arbitration ordered Wabtec to pay $3.9 million to Faiveley Transport Malmö for the misappropriation of trade secrets. The Group is examining next steps to provide for other entities of the Group within the relevant competent jurisdictions. 
  • A good 1st half and a favourable outlook
     
     
     
    IFRS standards, in millions of euros
    30/09/2009
    30/09/2008
    r%
    Sales volume
    414.7
    383.7
    +8.1%
    Operating profit
    51.7
    46.9
    +10.2%
    Operating margin (% of sales)
    12.5%
    12.2%
     
    Net profit
    32.6
    30.2
    +8.2%
    Net profit group share
    30.6
    18.3
     
    Net profit margin of group share (% CA)
    7.4%
    4.8%
     
    Net earnings per share (in euros)
    2.17
    1.50
    +45.1%
     
     
     
    Strong growth, in line with our forecasts
     
    Faiveley Transport’s sales for the half year ending 30 September 2009 totalled €414.7 M, an increase of 8.1% over the same period in the previous year. With exchange rates and the scope of consolidation held constant, the increase was 6.0%. The change in scope accounted for 2.0% of the nominal growth and changes in exchange rates for 0.1%.
     
    As of 30 September 2009, Faiveley Transport’s order book stood at €1,195 M, an increase of 4.9% over 31 March 2009 (€1,139 M), and 13.3% over September 2008 (€1,055 M).
     
     
    Trends by product line
     
     
    30/09/2009
    31/03/2009
    Air conditioning
    18%
    18%
    Couplers
    1%
    2%
    Customer Service
    32%
    31%
    Electromechanical systems
    3%
    3%
    Electronics
    6%
    6%
    Brakes
    23%
    24%
    On-board access doors
    13%
    12%
    Platform Doors & Gates
    4%
    4%
    Total sales volume
    100%
    100%
     
    The changes observed are due mainly to contract planning.

     

     
     
    Operating income increased by 10.2%
     
    Operating income came to €51.7 M, or 12.5% of total sales. This percentage is an increase compared to the figure of the previous year, thanks to good control of overheads. Operating income increased by 10.2% relative to 30 September 2008.
     
     
    Strong increase in earnings per share: +45.1%
     
    Taking into account the new shares issued in connection with the reorganisation of the Group’s shareholding at the end of December 2008, net earnings per share of the Group increased by 45.1% to €2.17, including an accretion effect of 29%.
     
     
    Continued favourable outlook
     
    Faiveley Transport expects its sales for the 2nd half of 2009/2010 to be close to the level achieved in the same period of the previous year, which had increased by 24.5% over the preceding year (2007/2008). The Group should therefore record a new increase in its total sales for the 12 months of 2009/2010.
     
    The world rail market remains strong, with numerous projects in all segments of the market and in all geographical regions. The strength of our sales teams and our innovative, flexible, multi-technology product line ensure that Faiveley Transport will be able to record steady sales growth in the medium term.
     
    Financial Calendar:
    Third quarter sales                           19 January 2010
    Annual sales                                        26 April 2010
  • Paris, 13 November 2009.

    Faiveley SA becomes Faiveley Transport

    The combined general assembly held on 22 September 2009 has ratified the change of Faiveley SA name, which becomes Faiveley Transport, the commercial name of the Group worldwide.

    Philippe Alfroid becomes Chairman of the Supervisory Board

    After the combined general assembly, the Supervisory Board has elected a new Chairman. Mr François Faiveley leaves his chair to the benefit of Mr Philippe Alfroid. Considering this contributes to a better governance of the company, Mr François Faiveley proposed this to the members of the Supervisory Board, who approved it. Mr François Faiveley has been elected Vice-Chairman of the Supervisory Board.

    Thierry Barel joins the Management Board

    The Supervisory Board has also appointed Mr Thierry Barel as member of the Management Board. Mr Barel joined the Group last July as COO.

    The Management Board is now constituted of four members : Mr Robert Joyeux, Chairman of the Management Board and CEO, Mr Thierry Barel, COO, Mr Erwan Faiveley and Mr Etienne Haumont, CFO. 

    FAIVELEY TRANSPORT, A WORLD LEADER OF THE RAILWAY INDUSTRY

    About Faiveley Transport Group

    The Faiveley Transport Group is one of the leading suppliers of high-technology railway systems and services, offering a wide range of products in eight business lines : air conditioning, electro-mechanics, on-board doors, platform doors and gates, on-board electronics, braking systems, couplers and customer services.

     

    In a buoyant international market, Faiveley Transport is using its industrial and commercial power on a global level to strengthen its position with major rail builders and operators. FAIVELEY Transport

    Etienne HAUMONT

    Member of the Management Board - CFO

    01 48 13 65 04

    etienne.haumont@faiveleytransport.com

    Kasha DOUGALL

    Communication Manager

    01 48 13 65 11

    Kasha.Dougall@faiveleytransport.com

    KEIMA COMMUNICATION

    Emmanuel DOVERGNE

    Analysts/investors

    01 56 43 44 62

    emmanuel.dovergne@keima.fr

  • New growth of the order book
     

     

    In million euros
    2009/2010
     
    2008/2009
     
    % change
    Q1: 1st April – 30 June
    216.1
     
    184.3
     
    +17.2%
    Q2: 1st July - 30 Sept.
    198.5
     
    199.4
     
    -0.5%
    1st semester
    414.6
     
    383.7
     
    +8.0%
     
    Paris, October 26, 2009
     
    Activity in line with expectations
     
    In the second quarter of the 2009/2010 fiscal year, Faiveley Transport recorded sales of € 198.5 million, similar to the same period of the previous year, which itself showed a sharp increase (+29.1%).
    For the first semester of the 2009/2010 year, sales stand at €414.6, an 8% increase compared to the first semester of the previous year, and a 6% increase at a fixed exchange rate and constant group structure.
     
    A growing order book at € 1.2 billion
     
    The order book shows a new growth at € 1,195 million, a 4.9% increase compared to 31st March 2009 and 13.3% compared to 30th September 2008.
     
    Stable activity for the second semester of 2009/2010
     
    In spite of the base effect of the second semester 2008/2009, which showed a 24.5% growth, sales for the second semester of this fiscal year should be similar to sales of the previous year, leading to a new growth of sales over the full financial year.
    Next event: 30th November 2009 (after stock exchange), interim results of the year 2009/2010.
  • Strong Growth 1st Quarter 2009/2010 : +17.2%

     
    Euros Millions
    1st Quarter 2009
    2nd Quarter 2008
    Change
    published
    Organic growth
    Perimetre effects
    Sales
    216.1
    184.3
    +17.2 %
    +13.6 %
    + 3.2%
     
     
    Sales Growth : +17.2 %
     
    After the exceptional growth of Group activity over the 2008-2009 year, this first quarter records a sales growth of 17.2%. At constant exchange rate and group structure, this is an increase of 13.6%.
     
    Growth was particularly high in the Asia Pacific area, moderate in Europe and sustainable in the United States at constant Group structure.
     

    Order book increase : + 8.5 %

    The order book has increased by 8.5% to 1,128M€, compared to 30th June 2008, and remains at a comparable level to 31st March 2009.
     
    Quarter highlights
     
    Commercial activity remains buoyant, with large tenders under negotiation.
     
    The freight market decreased significantly in the United States and in Europe. The Group does not have a strong presence in the freight market.
     
     
    Group Financial status in 1st quarter
     
    The operating margin is in line with Group expectations. As in previous years, on 30th June the Group recorded an increase in financial debt which is linked to the seasonal reduction of factoring and the necessity to increase stocks for summer production.

    Moderate growth in annual sales
     
    After the strong growth recorded during the 1st quarter of the year, the Group anticipates moderate growth for the entire year.
     
     
    Agenda :       22 September 2009 : General Meeting
                      26 October 2009 : Interim Sales
     
  • Strong sales and profitability growth in a market
    that still performs well in spite of the crisis
     
     
    IFRS, € millions
    31/03/2009
    31/03/2008
    % change
    Sales
    852.0
    692.9
    +23%
    Operating profit
    113.8
    88.4
    +28.7%
                 as % of sales
    13.4%
    12.8%
     
    Net profit
    71.2
    57.6
    +23.6%
    Net profit – Group share
    51.5
    36.3
    +41.8%
                 as % of sales
    6.0%
    5.2%
     
     
     
    Continuing sales growth: + 23%
    The Group reports sales of € 852 million, a 23% growth for the financial year ended 31 March 2009. This is an 18.5% increase on a constant group structure and foreign exchange basis.
     
    The sales order backlog was € 1,139 million at 31 March 2009, compared with € 1,005 million at 31 March 2008, which is an increase of 13.4%.
     
    Concurrently to the growth recorded in the Passenger, the Group adapted its structures very rapidly in the US to follow the decline in the Freight brake market, while taking advantage of the synergies generated by the acquisition of Ellcon in 2008.
     
    Following the significant success that the delivery of the first major locomotive brake contract in China represents, the Group registered further orders in this market, which confirms the success of the strategy developed in this country.

     
    Growth in operating profit: +28.7%
    The operating profit rose by 28.7% compared with the previous financial year, to € 113.8 million.  It represented 13.4% of sales, a marked improvement over the 12.8% achieved the previous year.
     
    Net profit – Group share grew by 41.8% to €51.5 million.
     
     
    Dividend: € 1.00 per share
    The Supervisory Board will propose to the Annual General Meeting of 22 September next the distribution of a dividend of € 1.00 per share, which is a 25% increase compared to 31 march 2007.  This dividend will be paid on 28 September 2009.
     

    Favourable outlook
    The railway market continues to perform well overall in spite of the economic crisis and should continue to achieve annual growth of 2% to 3% over the 2009/2016 period. Faiveley, which has been able to adapt to a changing global market, should continue to benefit from this growth, as reflected in the sales order backlog growth.  The Group forecasts a stable level of business over the 2009/2010 financial year and expects further growth in its sales order backlog.
     
    Shareholders’ agenda:        22 September 2009, Annual General Meeting
                                          26 October 2009, 2009/10 interim sales 
  • Activity progresses firmly
    over 2008/2009
     
    Year end 31st March
    In € millions
    2008 / 2009*
    2007 / 2008
    Variation
    Q1: 1 April - 30 June
    184.3
    162.6
    +13.3%
    Q2: 1 July - 30 Sept.
    199.4
    153.9
    +29.6%
    Q3: 1 Oct. - 31 Dec.
    224.5
    169.7
    +32.3%
    Q4: 1 Jan. – 31 March
    244.0
    206.6
    +18.1%
    Year
    852.2
    692.9
    +23.0%
    (*) Ellcon (USA) consolidated over 8 months, Faiveley Transport Gennevilliers consolidated over 12 months
     
     
    Strong growth in sales 2008/2009: +23%
    Activity remained very buoyant over the 4th quarter of the 2008/2009 year, Faiveley SA recorded sales of €244 million, an increase of 18.1% compared to the 2007/2008 4th quarter, a quarter which had also shown a strong increase.
     
    Over the entire year, sales were recorded at €852.2 million, an increase of 23% at current exchange rate and at 24.4% at constant exchange rate compared to the previous year. At constant group structure and constant exchange rate, this is an increase of 18.5%.
     
    Strong growth in order book: +13.4%
    At 31st March 2009, the order book records €1,139 million, an increase of 13.4% compared to 31st March 2008. The simultaneous increase in the order book and sales confirms the solid position of the Group.
     
    In the 2008/2009 year, the portfolio continued to develop throughout all of the geographical regions, thanks to the intake of large orders such as locomotive brakes for Datong in China and doors for the Brussels RER (suburban trains) with Siemens, and to small and medium sized contracts, which are the basis of the market and the core activity of the Group.
     
    Good outlook for activity in 2009/2010
    With a strong order book and a favourable trend in order intake, the Group looks set to register a further increase in sales for the 2009/2010 year.
  •     

    Strong increase in 3rd quarter sales: up 32.3%
    in a market that remains buoyant
     
     
     
     
    € millions
    2008 / 2009
    2007 / 2008
    % change
    Q1 : 1 April – 30 June
    184.3
    162.6
    +13.3%
    Q2 : 1 July - 30 Sept.
    199.4
    153.9
    +29.6%
    Q3 : 1 Oct. – 31 Dec.
    224.5
    169.7
    +32.3%
    9 months
    608.2
    486.2
    +25.1%
     
     
     
    Continued strong sales growth in the 3rd quarter
     
    In a world rail industry market that remains buoyant despite the weakness in the overall economy, Faiveley recorded a very strong increase in sales – above its preliminary forecasts – for the second consecutive quarter. Sales for the third quarter increased by 32.3% compared with the same quarter in the previous year, and by 24.3% at constant Group structure.
     
    For the first nine months of the 2008/2009 financial year, sales of the Group totaled €608.2 million, an increase of 25.1% compared with the same period in the previous year, or 20.5% at constant Group structure and constant exchange rate.
     
    As a result of the high level of sales, operating income, adjusted for extraordinary legal expenses associated with the litigation with Wabtec, increased more than expected.
     
    The growth in sales also resulted in an increase in working capital requirements, which will diminish by the end of the financial year.
     
     
    Growth in the order book
     
    Notwithstanding the very high level of sales over the past two quarters, the order book continued to increase, reaching €1,072 million at the end of the quarter, an increase of 8.7% compared with 31 December 2007, or 5.0% at constant Group structure.
     
     
    Completion of the capital reorganisation of Faiveley SA shareholding
     
    On 23 December, the General Shareholders Meeting approved the reorganisation of the capital of the Faiveley SA group, which henceforth holds 100% of the shares of Faiveley Transport. This reorganisation was facilitated by a credit agreement providing €407 million and $50 million in term loans for the acquisition of securities and the refinancing of existing bank debt, along with a revolving loan of €49 million to meet the general needs of the Group.
    At the same time, the Group has actively pursued synergies in the United States, consolidating all the activities of Faiveley Transport USA (doors, air conditioning and electronics) at the Ellcon facilities which the Group acquired on 31 July 2008.
     
     
    Continued favorable outlook for the 4th quarter of 2008/2009
     
    With the rail industry continuing to perform well, fourth quarter sales should continue to increase, without however reaching the exceptional growth levels experienced in the past two quarters. Sales growth for the 2008/2009 financial year should approach 20%.
     
     
     
    Next events:
    21 April 2009 (after stock market closing): announcement of annual 2008/2009 sales
    29 June 2009 (after stock market closing): announcement of annual 2008/2009 earnings

         

  •     

    Reorganisation of the Group’s capital structure finalised
     
     
    Faiveley SA’s Extraordinary General Meeting was held this morning at the Group’s headquarters. During the meeting, all of the transactions relating to the sale and transfer of Faiveley Transport shares and Faiveley Management shares, and the merger of Faiveley M2, which were announced on 16th October, were approved.
     
    The Groupe finalised a term loan with a banking syndicate composed of nine banks totalling 407 million Euros and 50 million Dollars, which will be used to reimburse the existing debt of the Faiveley group and to finance the acquisition of shares in Faiveley Transport. In addition, a revolving credit facility of 49 million Euros will be available to cover the general needs of the group.
     
    As a result of these transactions, Faiveley SA holds 100% of Faiveley Transport and Faiveley Management. The group will continue to simplify its legal structure by dissolving these two entities before 31 March 2008.
     
    The capital of the company has been increased to 14 404 711 Euros. The Sagard Investment Fund holds 8.1% capital in Faiveley SA.
     
    Financial Calendar : 20 January 2009, Sales 3rd Quarter 2008/2009 
  •     

    Interim Results 2008/2009
     
    Strong growth in income
    driven by very strong sales
     
     
    IFRS standards, in millions of euros
    30/09/2008
    30/09/2007
    r%
    Sales volume
    383.7
    316.5
    +21.2%
    Operating income
    46.9
    35.4
    +32.6%
         Operating margin
    (% of sales)
    12.2%
    11.2%
     
    Net income
    30.2
    22.8
    +32.1%
    Net income group share
    18.3
    14.4
    +26.4%
         Net profit margin of group share (% of sales)
    4.8%
    4.6%
     
     
     
    Strong sales growth in a market that remains bullish
    Group sales for the first half of the financial year that ended on 31 March 2009 totalled 383.7 M€, an increase of 21.2% compared with the same period in the previous year. With exchange rates and the scope of consolidation held constant, the increase was 20.0%.
     
    Sales were particularly strong in the second quarter, with an increase of 29.6% compared with the previous year. This increase in sales was achieved without affecting capital expenditures : proof of the flexibility of the business model developed by Faiveley Transport.
     
    The order book stood at 1,055 M€ on 30 September 2008, compared to 1,005 M€ on 31 March 2008.
     
     
    Increase in operating income: 32.6%
    Operating income totalled 46.9 M€, an increase of 32.6% compared to the same period in the previous year. The operating margin was 12.2%, compared to 11.2% in the first quarter of the previous year.
     
    The net income group share increased by 26.4% to 18.3 M€.
     
    As of 30 September 2008, the net debt of the group totalled 73M€. The 94M€ increase relative to 31 March 2008 is largely the result of debt incurred for acquisitions (74M€), the seasonal effect of the sale of receivables (16M€), and cash flow consumed by a partly temporary increase in working capital requirements. 
     

     

    Very favourable outlook despite the macroeconomic environment
    Booming market
    The world rail industry – representing a global market estimated at 120B€ in 2007 – remains very favourably oriented despite the recent deterioration in the global economy. Its fundamentals remain very strong, supported by a large number of projects in all segments of the market – high speed, passenger cars, locomotives, metros, and tramways – and in all regions – in Europe, Asia and North America and also in new regions such as the Gulf, Russia, Canada and Latin America. Demand for services (parts, maintenance, etc.) is also strong.
     
    Objective of sales growth better than that of the market
    Faiveley has developed a leading position as an innovative, flexible global supplier of a complete range of rolling stock and services. This position should permit Faiveley to benefit fully from the favourable rail industry outlook. The group hopes to significantly increase its market share with all rail manufacturers and operators throughout the world, and to strengthen its presence in large tender offers. The group has identified more than 800M€ in large projects that it will target over the next few years.
     
    Faiveley has set itself the goal of achieving average sales growth over the period 2008-2013 that is higher than that of the market as a whole.
     
     
    Capital restructuring
     
    In the course of the period just ended, the Faiveley group completed a capital restructuring to permit the Sagard investment fund – which was Faiveley’s partner in the acquisition of Sab Wabco in 2004 – to exit partially from its capital. This restructuring, which was announced on 16 October 2008, was granted final approval by market authorities on 25 November, and will be submitted for shareholders’ approval at a General Meeting on 23 December. As a result of this restructuring, Faiveley – which will change its name to Faiveley Transport – will have a simpler and stronger shareholder structure and benefit from an involved and highly motivated management team.
     
     
     
    Next events:                     23 December 2008: General Meeting to approve the capital restructuring
                                          20 January 2009: announcement of 3rd quarter 2008/2009 sales
     
  •    

    Tuesday, December 23, 2008, at 9:00 a.m.,
    at company headquarters: 143 boulevard Anatole France, 93200 Saint-Denis, France
     
    Saint-Denis, November 17, 2008 – The Faiveley SA Management Board meeting, held today, has decided to gather the shareholders for an extraordinary general meeting at 9am on Tuesday, December 23, 2008, at company headquarters, located at 143 boulevard Anatole France, Saint-Denis, France.
     
    The meeting's main objective is to approve the contribution of Faiveley Transport and Faiveley Management shares and the merger with Faiveley M2 (see press release for October 16, 2008: “Capital Restructuring of Faiveley Transport and Faiveley SA”).
     
    Full documentation of the general meeting is available upon written request from Société Générale, Service des Assemblées (general-meetings department), 32 rue du Champ-de-Tir, BP 81236, 44312, Nantes Cedex 03, France.
  • FAIVELEY CONTINUES TO RECORD STRONG SALES INCREASES IN A MARKET THAT REMAINS FAVOURABLE

    M€

    2008 / 2009

    2007 / 2008

    Change

    Q1: 1 April – 30 June

    184.3

    162.6

    +13.3%

    Q2: 1 July - 30 Sept

    199.4

    153.9

    +29.6%

    1st half year

    383.7

    316.5

    +21.2%


    Strong increase in sales in the 2nd quarter: + 29.6% 
    In a world rail market that remains strong, Faiveley recorded a large increase in business in the second quarter of its 2008/09 fiscal year. Sales for the quarter increased by 29.6% compared to the previous fiscal year, and by 21.6% at constant perimeter. 

    For the first half of the 2008/09 fiscal year, sales for the group totalled €383.7 million, an increase of 21.2% compared to the same period in the previous fiscal year, and 20.0% at constant exchange rates and perimeter. 

    The integration of the friction materials business in France and the freight brake equipment business in the United States, acquired during the first half year, should yield business, industrial, and R&D synergies. 

    An order book in excess of €1 billion 
    The order book totals €1,055 billion, an increase of 5.1% over 31 March 2008, and 12.5% over 30 September 2007. 

    Continued favourable outlook for the second half of 2008/09 
    The third quarter should continue to be favourable. The Group has a growth objective of more than 10% for the period, at constant exchange rates and perimeter. 

    Next steps: 1 December 2008 (after stock market closing), announcement of 1st half 2008/09 earnings.

  • Paris, 16 October 2008 –Faiveley SA, Sagard, and the other direct and indirect shareholders of Faiveley Transport today signed agreements relating to their respective holdings in the capital of Faiveley Transport.
     
    These agreements provide for the transfer and sale to Faiveley SA of all shares in Faiveley Transport (shares and warrants) not currently held by Faiveley SA, in exchange for 286.5 million euros in cash and 2,111,000 new shares in Faiveley SA. Specifically:
     
    -           for the holdings of venture capital mutual funds (fonds communs de placement à risques) managed by Sagard (referred to hereinafter as "Sagard"), payment of the sum of 229.0 million euros and issuance of 1,400,000 new shares in Faiveley SA [1], and
     
    -           for the holdings of the other direct and indirect shareholders in Faiveley Transport, including mainly 46 directors and officers of the Faiveley group located in the investment structures of Faiveley Management SAS and Faiveley M2 SAS, payment of the sum of 51.6 million euros (plus the assumption of 5.8 million euros in debt) and issuance of 711,000 new shares in Faiveley SA. The shares contributed by the directors and officers of the Faiveley group will represent more than 40% of the value of their investment in Faiveley Transport, and the shares of Faiveley SA they receive in exchange will be covered by lock-up agreements with a duration of two to three years.
     
    These transactions will take place during the concerted liquidity period provided for in the agreements signed at the time of Sagard’s entry in the capital de Faiveley Transport. [2]
     
    Faiveley SA currently holds 61.7% of the share capital and voting rights of Faiveley Transport, and its share capital and voting rights are distributed as follows:
     
     
     
    # shares
    %
     
    # voting rights
    %
    Financière Faiveley
    6,267,965
    50.0%
     
    12,523,930
    61.6%
    François Faiveley Participations
    1,262,915
    10.1%
     
    2,497,665
    12.3%
    Other Faiveley family
    582,140
    4.7%
     
    824,745
    4.1%
    Total Faiveley family
    8,113,020
    64.8%
     
    15,846,340
    78.0%
    Free float
    4,078,650
    32.5%
     
    4,467,666
    22.0%
    Treasury stock
    337,915
    2.7%
     
    -
    -
    Total
    12,529,585
    100.0%
     
    20,314,006
    100.0%
    At the conclusion of these transactions of sale and transfer, Faiveley SA will hold all of the share capital and voting rights of Faiveley Transport, and its capital will be distributed as follows:
     
     
    # shares
    %
     
    # voting rights
    %
    Financière Faiveley
    6,267,965
    42.8%
     
    12,523,930
    55.9%
    François Faiveley Participations
    1,262,915
    8.6%
     
    2,497,665
    11.1%
    Other Faiveley family
    582,140
    4.0%
     
    824,745
    3.7%
    Total Faiveley family
    8,113,020
    55.4%
     
    15,846,340
    70.7%
    Sagard
    1,400,000
    9.5%
     
    1,400,000
    6.2%
    Directors and officers
    711,000
    4.9%
     
    711,000
    3.2%
    Free float
    4,078,650
    27.9%
     
    4,467,666
    19.9%
    Treasury stock
    337,915
    2.3%
     
    -
    -
    Total
    14,640,585
    100.0%
     
    22,425,006
    100.0%
     
    Provision has also been made for the establishment of a stock ownership plan for the directors and officers of the Faiveley group through the granting of stock options or bonus shares. This plan will result in the attribution in each of the next four years of stock options on roughly 1% of the share capital of Faiveley SA or bonus shares on the order of 0.4% of share capital. [3]
     
    Credit lines totalling 407 million euros and 50 million dollars, which will be used to reimburse the existing debt of the Faiveley group and to finance the acquisition of shares in Faiveley Transport, will be made available by a banking syndicate composed of nine banks.[4] In addition to these fixed credit lines, a revolving credit of 49 million euros will be available to cover the general needs of the group. Faiveley SA has obtained a firm commitment from the members of the syndicate covering the entire amount of these fixed credit lines and of the revolving credit. This commitment is subject to the usual conditions for this type of financing.[5]
     
    The transactions relating to the acquisition and to the contribution of shares in Faiveley Transport will take place during the second half of December 2008, immediately after the General Meeting which will be called to approve the contributions and their compensation.[6] The execution of these transactions will be subject to the drawing of bank financing as well as to certain additional suspensive conditions (including the registration by the Autorité des Marchés Financiers of document E describing the transactions leading to the issuance of new shares in Faiveley SA).
     
    The shareholder agreements concerning Faiveley Transport will terminate ipso jure upon Faiveley SA’s acquisition of all of the capital of its subsidiary.
     
    Dominique Ledouble and Didier Faury have been designated by order of the Tribunal de Commerce of Bobigny as auditors for the capital contributions and the merger for all of the transactions. They will be responsible for assessing the valuation of the contributions in kind and for pronouncing on the compensation in Faiveley SA shares.
     
    Faiveley SA’s acquisition of all of the share capital of its Faiveley Transport subsidiary should also result in:
     
    -          a simplification in holding structures, with Faiveley Transport being merged into Faiveley SA (which will be renamed Faiveley Transport) by 31 March 2009;
     
    -          maintenance of family control of the Faiveley group;
     
    -          a significant investment on the part of the management team in Faiveley SA, representing nearly 5% of its capital; and
     
    -          optimal use of the capital of the Faiveley group through the use of debt.
     
     
     
    Analyst presentation: The presentation which will be made to “sell-side” analysts is available on the website of Faiveley SA : www.faiveley.com
     
    Next event: Publication of consolidated third quarter 2008 sales on 22 October 2008 (after stock market closing).
     
     

     


    [1] Sagard will have the right, upon request made no later than two days before the General Meeting called to approve the capital contributions, to increase the cash portion to 239.2 million euros and reduce the portion in shares to 1,170,000 new shares in Faiveley SA.
    [2] See Faiveley SA press release of 16 November 2004.
    [3] The stock ownership plan will be subject each year to authorisation by the General Shareholders Meeting. Faiveley SA plans to comply with the recommendations on compensation for directors and officers published in October 2008 by AFEP and MEDEF.
    [4] These credit lines require the Faiveley group to satisfy covenants that set ceilings on the ratio of financial debt to EBITDA and the ratio of financial debt to capital. These ceilings are set at 3.5 and 1.8 respectively for 31 March 2009, and decrease over the life of the credits.
    [5] Including a condition which conditions the extension of financing on the absence of a material adverse change affecting the national or international market for loans that is likely to prevent lenders from extending credit lines.
    [6] François Faiveley Participations, the holding company of the Faiveley family and controlling shareholder of Faiveley SA, committed for Sagard to vote in the General Meetings for the resolutions necessary to carry out these operations.
  • Faiveley Transport, a company controlled by Faiveley SA and Sagard, confirms today that it has completed the acquisition of 100% of Ellcon-National equity shares, a US based railway brake specialist.

     
    Ellcon-National, founded in 1910, is based in Greenville, South Carolina and employs around 300 people. In 2007, it had annual sales of around US $ 58 million (€36.9 million). The company produces a wide range of products for freight wagons such as brakes and loading devices, together with equipment for passenger rail cars including stainless steel doors and windows for intercity and light rail vehicles.
     
    This acquisition is strategically important for Faiveley Transport and its customers. ‘Ellcon-National is the perfect strategic match for Faiveley Transport; the combination of both activities will allow us to improve our offer in both the US and the railway freight market, areas where, up until now, we have had a limited presence’, states Robert Joyeux, CEO of Faiveley Transport. Furthermore, the US railway market is dominated by freight and is  valued at US $ 10 billion for 2008-2018.
     
    By joining the Faiveley Transport Group, Ellcon-National will be able to take a step forward in their international development: ‘Working with Faiveley Transport’s teams, renowned for their technical expertise and global presence, will enable us to reach new worldwide markets’, confirmed Emil Kondra, Chairman & CEO of Ellcon-National.
  •     

    Change in Dividend
    Proposed to the General Assembly 17 September 2008
     
     
    For reasons concerning accounting regulation, Faiveley S.A.’s Management Board are unable, as originally announced, to propose a dividend of €1 by share to the General Assembly who will approve the accounts for the financial period up to 31 March 2008.
     
    Indeed, if the company has sufficient cash flow, the obligation to deduct the amount of auto-control from the distributable reserves does not currently allow a dividend of this amount to be distributed.
     
    The management board therefore proposes to the General Assembly to distribute a dividend of €0.35 per share; the payment will be made 22 September 2008. 
     
  •     Sustained Activity Continues: Quarter 1 2008 - 2009 : +13.8%



    Sales increase : +13.8 %
     
    The beginning of the fiscal year continued in line with the previous semester. Activity continues to increase with sales of €184.3 million, an increase of 13.8% compared to the same period of the previous year. An increase of 12.3% at constant exchange rate and constant group structure.
    Order Book increase :  + 11.3 %
    The order book increases by 11.3% to €1,050 million, compared to 30 June 2007, and by 4.5% compared to 31 March 2008.

    Favourable Outlook
     
    The positioning of the railway industry is favourable and Faiveley Transport confirms its objective to increase activity by more than 10% this year.
     
     
    Financial calendar :                     17 September 2008 : General Assembly
                                                         22 October 2008 : Interim Sales
  •     

     
     
    IFRS Methods, in millions Euros
    31/03/2008
    31/03/2007
    Variation %
    Sales
    692,9
    618,9
    +12,0%
    Operating Income
    88,4
    78,7
    +12,3%
         Operating Margin (% of sales)
    12,8%
    12,7%
     
    Net Income
    57,6
    48,1
    +19,8%
    Net Income Group Share
    36,3
    29,2
    +24,3%
         Net Margin of Group Share
     (% of Sales)
    5,2%
    4,7%
     
     
     
    Solid financial performance in a growing market
    Group Sales are recorded at €692.9 million for the year, at 31 March 2008, an increase of 12% compared to the previous year. This is an increase of 10.8% at constant group structure and a constant exchange rate.
     
    The order book totals €1,005 million, compared to €862 million at constant group structure at 31 March 2007.
     
    This level of activity demonstrates the potential of Faiveley’s teams and their capacity to confront industrial challenges throughout the world.
     
    During the year 2007/2008, Faiveley carried out 5 acquisitions:
     
    -        Three in the brakes’ area : 50% of Jia Xiang in China, 75% of Nowe Streugeräte in Germany
             and of the sintered brake pads’ activity of Carbone Lorraine in France.
    -        One in the couplers’ area in China with the creation of a Joint Venture with Datong
    -        One in the electronics’ area with the acquisition of the railway activities of Integrian in
             Australia.
     
    Negotiations have also been undertaken for the acquisition of the company Ellcon National, an American company specialised in braking systems for the freight business in North America.
     
    These acquisitions will enable Faiveley to complete its offer in the strategic field of brakes and to reinforce its know-how in electronics. The Group is increasing its international presence in markets with potential for strong growth.
     
    Growth in operating income : +12,3%
    The operating income, €88.4 Million, has increased by 12.3% compared to the previous year. The operating margin has reached 12.8% compared to 12.7% for the previous year.
     
    The Group net income has increased by 24.3% to €36.3 million.
     
    At 31 March 2008, Faiveley shows a net cash position of €20.5 million, compared to a net debt of €16.8 Million at 31 March 2007, an improvement of €37.3 million over the year after the distribution of €9.7 million in dividends.
     
    Dividend: +25%
    The board of managers will propose to the General Assembly, who will meet on 17 September, the distribution of a dividend of 1.00 Euro per share, an increase of 25% compared to the previous year. The payment of this dividend will be made on 22 September 2008.
     
    Favourable Outlook
    The activity of the year 2008/2009 shows good visibility in the order book, which has numerous orders of a varied nature.
     
    The Group continues to develop in its main markets in Asia and in Europe where it will benefit from the acquisitions made in 2007/2008. The completion of the negotiations for the acquisition of Ellcon National should enable Faiveley to penetrate the brakes’ market for freight in North America and to reinforce its presence there significantly.
     
     
     
    Financial calendar :          17 September 2008, General Assembly
                                          22 October 2008, Interim Sales  2008/2009  
  •     

    Net Sales 2007/2008: € 692 M
    Order Book: € 1 Billion
     
                  As of 31 March
    Net Sales (in € millions)
    2006/2007
    2007/2008*
    Variation
    4th  Quarter   
    189.4
    205.6
              + 8.6 %
    Consolidé annuel    
    618.9
    691.8
    + 11.8 %
     (*) : Espas Group consolidated over 12 months, Nowe, Datong Couplers and Xiajiang over 3 months.
     
     
    INCREASE IN SALES: + 11.8 %
    Faiveley Group 2007/2008 consolidated sales have increased to €691.8 Million, an increase of 11.8%, at a current exchange rate, and 12.5% at a constant exchange rate, compared to the same period last year. At constant group structure and constant exchange rate, the activity has grown by 10.8% for the 2007/2008 financial year.  
     
    During the fourth quarter, sales for the year 2007/2008 increased by 8.6%, compared to the same period last year, a quarter which already registered strong growth. 
     
    On 31 March 2008, the order book exceeds a billion Euros (€1,005 Million), an increase of 16.6% compared to €862 Million on 31 March 2007. The order book of the final quarter 2007 also increased by 17%.
     
    OUTLOOK
    The current order book confirms continuing growth for the present year. This increase reflects a dynamic market with good prospects for Faiveley Transport.
     
     
    Annual Results Presentation: 2 July 2008
    Faiveley is listed on compartment B of  l’EurolistTM by Euronext Paris
    References  : SBF 250, CAC MID&SMALL 190
    Codes ISIN : FR0000053142 -  Reuters : FAIP.PA  -  Bloomberg : LEY:FP
  • 3rd Quarter Sales on 31/12/2007:  € 486.2 million  (+ 13,1 %)

    Order Book increases 19% to € 986 million
     
    During the first 9 months of the year 2007/2008 (a period starting on April 1st and ending 31st December), the Faiveley group registered consolidated sales of €486.2 million, a 13.1% increase, compared to the same period last year. At constant group structure and constant exchange rate, this is an increase of 11.9%.
     
    Sales for the third quarter are € 169.7 million (€166.9 million at constant group structure). This is an increase of 6.7% compared to the same period for the year 2006-2007 (€159 million), in line with the group’s expectations. The target of a double digit increase for the year is confirmed.
     
    The order book continues to increase to €986 million, compared to €828 million on 31st December 2006 and €862 million on 31st March 2007.
  •     

    Faiveley Transport, a company controlled by Faiveley SA and Sagard, acquires 75% shares of Nowe Streugeräte, a sanding systems’ company based in Hannover, Germany, on 2nd January 2008. Mr. Bartling, current Co-Managing Director will retain the remaining 25%.
     
    NOWE Streugeräte specialises in the development and design of sanding systems. Recognised as the most innovative supplier in this niche market (market potential of
    € 25 Million) they offer both customised and full service packages with a workforce of 17 and net sales of €3 Million.
     
    This acquisition will enable Faiveley Transport to provide a complete offering of innovative brake systems to customers in a market where operators are increasingly interested in procuring an overall package including sanding, an area becoming more important due to safety reasons. It will also allow Faiveley to further penetrate the German market.
     
    NOWE will particularly benefit from Faiveley’s international presence to conquer new markets.
  •     

    On 20th December, Faiveley Transport, a company controlled by Faiveley SA and Sagard, completed the acquisition of 50% of Shi Jia Zhuang Jia Xiang Precision Machinery Co. Ltd., based in the Hebei Province, 250 KM South West of Pekin.
     
    This company, founded in 2001, is specialised in the development and production of  compressors for the railway market. Its sales reached €7 Million in 2006. With over 70 employees, they hold a significant domestic market share in the metro, EMU and locomotive markets.
     
    This acquisition will enable Faiveley Transport to benefit from engineering and development expertise and a recently developed state of the art range of products. Faiveley Transport will benefit from competitive production costs and increase its research and development capacity.
     
    Shi Jia Zhuang Jia Xiang Precision Machinery Co. Ltd will benefit from Faiveley Transport’s global presence to conquer new markets.
  • IFRS Methods, in € Millions
    30/09/2007
    30/09/2006
    Δ%
    Net Sales
    316,5
    270,9
    +16,8%
    Operating profit on ordinary activities
    37,3
    32,5
    +14,6%
        Operating  Profit margin on
        ordinary activities (% of sales)
    11,8%
    12,0%
     
    Operating Income
    35,4
    32,5
    9,0%
        Operating Margin (% of sales)
    11,2%
    12,0%
     
    Net Profit
    22,8
    19,7
    +15,7%
        Net profit Margin (% of sales)
    7,2%
    7,3%
     
    Net Income Group Share
    14,4
    11,9
    +21,1%
     
     
    Solid and dynamic business in a buoyant market
    Group net sales have increased 16.8% to € 316.5 Million, compared with last year. At constant group structure and a constant exchange rate, this is an increase of 15.4%.
    On 30 September, 2007, the order book, with over 900 contracts, is reported at € 938 Million, compared to € 814 Million on 30 September 2006. The order book contains 23 months’ net sales for original equipment and 8 months’ net sales for “Customer Services”.
     
    Increase in operating profit from ordinary activities : +14,6%
    The operating profit from ordinary activities, at € 37.3 Million, has increased by 14.6% compared to the 1st semester 2006/2007. The operating profit margin is reported at 11.8%. This slightly lower ratio, compared to the level achieved on 30 September 2006, is due to the development of a contract mix that is less favourable during this year’s 1st semester. The second semester should enable last year’s operating profit margin on ordinary activity to be reached. The operating margin, of 11.2%, has been affected by the relocation of an industrial site in Germany during the second semester.
    Net profit has increased by 15.7% to € 22.8 Million.

    On 30 September 2007, IFRS Group net debt is recorded at € 20.3 Million. Not including the seasonal effect of factoring, (€ 19.1 Million), the debt reduction of the group during the semester is €15.6 Million, after the distribution of dividends of € 9.8 Million, therefore a net debt of € 1.2 Million.

    A favourable outlook
    The 2007/2008 activity is well positioned in a growing market, as the increase in the order book shows.
    Faiveley continues to grow, and specifically in China, where a new 50/50 joint venture has been created, with the Chinese group, Datong, for the production of couplers, intended for the Chinese market. This structure, already in operation, has taken its first order at a value of € 2.3 Million.  
    Faiveley has entered in to exclusive negotiation with the group Carbone Lorraine for the acquisition of its activity for sintered brakes, number 3 in the world, in the sector, and the TGV leading supplier. This acquisition will enable Faiveley to reinforce its high speed brake offer.
    Financial Agenda :  
    22nd January 2008, Net Sales 3rd quarter 2007-2008
    23rd April 2008, Annual Net Sales 2007-2008 
  • Faiveley Transport, a company controlled by Faiveley SA and Sagard, has entered into exclusive discussions with Carbone Lorraine for the acquisition of its sintered brake pads’ activity.
    The activity’s 2006 annual sales is € 17.1 Million. It employs 80 people at a site based in Gennevilliers, in the North West suburbs of Paris, France.
    The activity encompasses the design, production and sale of sintered friction materials for braking applications, used primarily in the railway industry. In this activity, Carbone Lorraine is referenced as the main TGV’s supplier. 
    This acquisition will generate strong industrial and commercial synergies. The activity will particularly benefit from Faiveley Transport’s global presence.  The combination of the respective activities will allow Faiveley Transport to optimise its brake solutions, propose a full product range to the high energy brakes’ market and reinforce its position as a world leader.
  • In € Million 
    NET SALES
    2007/2008
    2006/2007
    % CHANGE
    1st Quarter
    162.6
    139,5
    2nd Quarter
    153.9
    131.4
    1st Semester
    316.5
    270.9
    +16.8%
          
     
    During the first six months of the 2007/2008 fiscal year, (1 April to 30 September 2007), the Faiveley Group made consolidated sales of € 316.5 million, a 16.8% increase compared to the same period of the previous year. This is an increase of 15.4% at a fixed exchange rate and constant group structure. This is a considerable increase when compared to last year’s first semester, which was subject to relatively low sales, due to the shift of the delivery schedule to the end of the year.
     
    Even though growth for the second semester’s activity will be lower, the Group confirms that perspective growth in sales for the current year should be above that of the previous year, which was +8.9%.
     
    The order book has continued to increase to € 938 million, compared to € 814 million as of 30 September and € 862 million as of 31 March 2007 (Espas Group included).
  • SALES INCREASE : +16.1%
    Continuing on from the previous semester, the group records a solid activity, with a 16.1% increase in sales to €162.6 million, compared to the same period last year. At a constant group structure and a constant exchange rate, this is an increase of 14.5%
    A SHARP INCREASE IN THE ORDER BOOK : +32%
    The order book is registered at €943 million, an increase of 32% compared to 30th June 2006, and of 9% compared to 31st March 2007.
    FAVOURABLE OUTLOOK 
    The first semester of the year should see an increase above that of the previous year, which was penalised by the delivery schedule of some orders. The activity will be more modest in the second semester 2007/2008 taking into account the very high level reached during the 2006/2007 second semester. 
    Next Meetings :
    19th September 2007 : General Assembly
    23rd October 2007 : Semester Sales 
  •     

    Continuing to improve performance
    Consolidated accounts as of 31st March 2007 using IFRS methods
    (in € millions)
    31/03/2007
    31/03/2006
    % change
    Sales
    618,9
    568,9
    +8.8%
    Operating income
    78,7
    68,4
    +15,0%
    Operating margin (as % of sales)
    12,7%
    12,0%
     
    Net income
    48,1
    35,2
    +36,7%
    Net margin (as % of sales)
    7,8%
    6 ,2%
     
    Net Income Group Share
    29,2
    17,6
    +65,6%

    Solid financial performance in a growing market 
    Group sales have increased 8.8% to M€618.9 compared to the previous year. At a constant group structure, this increase is 7.4% and 7.7% at constant exchange rates.
    As of 31 March 2007, the order book totals M€862, (including the ESPAS Group) bringing together over 900 contracts, compared to M€737 as of 31 March 2006.
     
    Strong increase in operating income: +15% 
     
    The operating income, at M€78.7, has increased by 15%, compared to the previous year. The operating margin is fixed at 12.7%. This excellent performance is even more significant because it takes into account expenditure on the adaptation of industrial tools. Above all, it can be explained by the ongoing synergies from the Sab Wabco acquisition and by efforts to manage costs.
    The net margin has increased 36.7% to M€48.1, benefiting from the sale of the plastics business.
    As of the 31st March 2007, the Group’s net debt has been reduced from M€35 to M€17, compared to 31 March 2006; a net debt/equity ratio of 7%. Less than three years after the acquisition of Sab Wabco, Faiveley has restored its borrowing capacity and can envisage new investments.  
     
    Dividend: +60%
     
    The supervisory board proposes to the General Assembly, due to meet 19 September, the distribution of a dividend of 0.80 Euros per share, an increase of 60% compared to last year. The dividend will be distributed the 24th September 2007.

    Favourable Outlook 
     
    The activity in 2007/2008, should continue in the same direction in a buoyant market.
    Faiveley will pursue its growth in the Asian markets and in particular in China, where they have just inaugurated two new factories.
    In Europe, the world’s largest market, the Group will reinforce its competitive position with the three year project “Moving forward” aimed at harmonising organisations, processes and IT tools within the Group. 
     
    Financial Agenda :
    • 23 July 2007, Sales 1st Quarter 2007-2008
    • 19 September 2007, General Assembly
  •  
    IN LINE WITH FORECASTS
    In € millions
    NET SALES
    2006/2007
    2005/2006*
    Variation
    4th quarter
    189.4
    156.8
    +20.8 %
    Year 2006/2007
    619.3
    568.9
    + 8.9 %
    (*) : Neu SF consolidated for three months in 2005 / 2006, excluding  ESPAS consolidated in the income statement from 1st April 2007
    Increase in sales: + 8.9%
    As expected, sales for the 4th quarter of the 2006/2007 financial year, which benefits from certain orders being placed at the end of the year, have increased to €189.4 million, a rise of 20.8% compared to the same period in the previous financial year.
    For the 2006/2007 financial year, at 31 March, the Group recorded net sales of €619.3 million, an increase of 8.9% compared to the previous financial year. At a constant Group structure, this is an increase of 7.4% and at a constant exchange rate, 7.7%.
    Sustained order book
    The Group’s commercial activity continued at a sustained rate, as reflected in the order book which increased to €862 million (including ESPAS), compared to €737 million (+17%) on the 31 March 2006.
    We have had a good level of activity throughout the financial year, in line with expectations’, states Robert Joyeux, CEO. ‘We are therefore confident that our annual results will also be in line with our forecast.’
    Next meeting: 5 July 2007, Annual Sales 2006-2007
  •     

    Progressive increase in sales: + 11%
    As expected, sales for the 3rd quarter of the 2006/2007 financial year have significantly increased to €159 million, a rise of 11% compared to the same period in the previous financial year. This is an increase of 8.8% at a constant Group structure.
    The Group recorded sales of €429.9 million for the nine-month period, a growth of 4.2% at current exchange rates and 2.5% at constant exchange rates and constant Group structure. 
    A considerable increase in order book: + 25%
    At the same time, Faiveley’s commercial activity continued at a sustained rate, similar to previous years.
    The order book has reached a record level of €828 million, a rise of more than 20% compared to the 30 December 2005.
    Our sales efforts are paying off’, states Robert Joyeux, CEO. ‘They has resulted in a very solid and diversified order book with over 800 original equipment contracts’.

    Positive Outlook
    Considering the delivery schedules, the outlook is positive and Faiveley confirms its growth objectives for 2006/2007.
     
    Next meeting: 24 April 2007, Annual Sales 2006-2007

Reference

► Customer Service Spare Parts

Faiveley Transport's forward planning helps the operator to reduce inventory stock and make savings.

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