In the 2020 financial year, the Voith Group performed reasonably well given the significant adverse impacts of the global COVID-19 pandemic across all segments and markets in the second half of the year. In this context, the Group benefited from its broad-based positioning in terms of sectors and geography; its stable, regionally-organized supply chains; and its very sound financial situation.
The moderate decline in orders received and consolidated sales that were only slightly below that of the previous year are evidence of the robust condition of Voith’s business operations. Under the circumstances, earnings were also satisfactory. Although the Voith Group’s EBIT before special effects declined compared with the previous year, it was still sound in a multi-year comparison. The consolidated net result also remained positive despite the adverse effects of the coronavirus situation on business. The total cash flow and the cash flow from operating activities developed very positively.
The Group Division Paper reported growth in orders received and sales, and again made the largest contribution to the Group result. As expected, Voith Hydro reported a decline after a particularly strong performance in the previous year, however, due to market conditions, the downturn was more severe than expected. Despite the economic crisis, Group Division Turbo performed well overall in a number of customer segments, with only slight decreases in orders received and sales.
“For the Voith Group, like most companies in our industry, the last fiscal year was a critical test. Thanks to our diversified positioning and sound financial situation, we not only came through the crisis relatively well but we also further honed our strategy in respect to the megatrends of decarbonization and digitalization in the past fiscal year. We have already made considerable progress in implementing our strategy and have continued to invest in the future of our company. Therefore, the Voith Group is well-positioned to emerge from this unprecedented crisis stronger and to continue to perform well in the medium to long term,” says CEO Dr. Toralf Haag.