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. 

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.

FIRST HALF-YEAR SALES 2011/12

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

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
 

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

(*) 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.

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.  

1st Quarter 2010/2011: Sales €203m

Order Book  €1,346m

and significant REGIO 2N contracts with Bombardier

Order book: +19.2 %

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.

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.

Strong Growth 1st Quarter 2009/2010 : +17.2%

Order book increase : + 8.5 %

Very favourable outlook despite the macroeconomic environment

FAIVELEY CONTINUES TO RECORD STRONG SALES INCREASES IN A MARKET THAT REMAINS FAVOURABLE

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.

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.

    Sustained Activity Continues: Quarter 1 2008 - 2009 : +13.8%

Order Book increase :  + 11.3 %

3rd Quarter Sales on 31/12/2007:  € 486.2 million  (+ 13,1 %)

• 23 July 2007, Sales 1st Quarter 2007-2008
• 19 September 2007, General Assembly