Annual Report 2005/06 - voestalpine
Annual Report 2005/06 - voestalpine
Annual Report 2005/06 - voestalpine
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sales from 9% to 14%. This development is<br />
mirrored in the sales pattern according to<br />
industries, where the share of the oil and<br />
gas industry rose in the <strong>2005</strong>/<strong>06</strong> business<br />
year from 12% to 17%. However, with almost<br />
60% of total sales, products and services for<br />
the railway industry still account for the<br />
largest portion of the division’s total sales.<br />
As a result of the significantly expanded<br />
business in the sector of switch technology<br />
in North America, the share of this market<br />
in the division’s overall sales increased considerably<br />
from 12% to 15%. With 67%, the<br />
European Union continues to be by far<br />
the largest market of the division, while<br />
the remaining European countries’ share<br />
amounted to 7%.<br />
Profit from operations before depreciation<br />
(EBITDA) rose by more than two thirds from<br />
EUR 197.6 million to EUR 333.2 million.<br />
The profit (EBIT) in the <strong>2005</strong>/<strong>06</strong> business<br />
year amounted to EUR 247.9 million, and<br />
thus more than doubled compared to last<br />
year ’s figure (EUR 122.5 million). This<br />
means that the Division Railway Systems<br />
was also able to markedly increase its<br />
profitability; the EBIT margin rose by 7.7%<br />
to 13.6%. For the first time in the Group’s<br />
history, the Division Railway Systems is<br />
leading the internal margin ranking of the<br />
individual divisions.<br />
The rise in the number of employees by 3.3%<br />
from 6,738 to 6,959 is largely a result of the<br />
introduction of a fourth shift in the seamless<br />
tube production as well as of the consolidation<br />
of the newly acquired companies<br />
CONTEC Transportation Systems GmbH<br />
and SST Signal & System Technik GmbH<br />
(both in Germany) and the Indian joint<br />
venture Rahee Track Technologies Pvt. Ltd.<br />
However, the number of personnel at the<br />
German switch manufacturer BWG Gesellschaft<br />
mbH & Co KG decreased as a result<br />
of structural adjustments made necessary<br />
by market conditions.<br />
aCqUisiTions<br />
In April <strong>2005</strong>, the switches segment of the<br />
Division Railway Systems acquired a stake<br />
of 51% in CONTEC Transportation Systems<br />
GmbH specializing in point-operating<br />
systems and 80% of SST Signal & System<br />
Technik GmbH specializing in safety technology<br />
for railway traffic. Both companies<br />
are located in Germany.<br />
In October <strong>2005</strong>, a majority interest in the<br />
Indian switch manufacturer Rahee Track<br />
Technologies Pvt. Ltd. was acquired. After<br />
penetrating the Indian market successfully<br />
with the acquisition of two companies in the<br />
previous year, the new joint venture is yet<br />
another important step for this segment in<br />
the process of optimally positioning itself in<br />
the rapidly growing Indian market.<br />
Divisional <strong>Report</strong>s<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2005</strong>/<strong>06</strong>
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