Source: Excerpt of Knorr-Bremse announcement
Munich – Knorr-Bremse, the global market leader for braking and other systems for rail and commercial vehicles, today reported strong preliminary full-year 2019 results, with total revenues up 4.8 percent and reported EBITDA margin up 140bp to 19.2 percent.
“2019 was a successful year for us. We delivered on our capital market guidance and secured our market leadership. With the plant closure in Wülfrath and the exit from the Powertech business we took important measures to safeguard our profitability going forward,” said Bernd Eulitz, CEO of Knorr-Bremse AG. “In the fourth quarter, both our businesses CVS and RVS benefited from strong orders, which underlines the resilience of our business model in a challenging economic environment.”
Strong order intake underlines the resilient business model of Knorr-Bremse
With €7,066 and a book-to-bill ratio of 1.02, Knorr-Bremse’s order intake expanded by 0.9 percent. The company’s order book reached a new peak of €4,692 at the end of 2019, an increase of 2.8 percent (2018: €4,563).
Dynamic revenue growth and continued profit growth
Full-year revenues increased by 4.8 percent to €6,937 (2018: €6,616) and thereby outperformed both respective markets. Rail Vehicle Systems (RVS) grew by 5.6 percent to €3,656 (2018: €3,462) vs. a rolling stock market growth of +2.6 percent. Commercial Vehicle Systems (CVS) grew by 3.8 percent to €3,280 (2018: €3,160), outgrowing global truck production rate of -4.5 percent significantly. Both RVS and CVS revenues benefited from a healthy aftermarket and strong support from the APAC region.
At Group level, Knorr-Bremse generated a reported EBITDA of €1,329, an increase of 12.8 percent on 2018 (€1,178). This corresponds to a margin of 19.2 percent, significantly higher than 2018 (17.8 percent). Operating EBITDA, excluding restructuring costs and book profit from the sale and lease back transaction in Munich, but including IFRS 16 effects, amounted to €1,303 (2018: €1,204) and an operating margin of 18.8 percent (2018: 18.4 percent) – well within the guidance corridor.
Group EBIT for 2019 came to €1,063, up 9,3 percent year-over-year (2018: €972) and corresponding to a margin of 15.3 percent, 60 bps over last year’s level at 14.7 percent. Operating EBIT margin reached 15.1 percent, after 15.6 percent in 2018.