Talgo Earns 13% Less for Extra Expenses in Russia

Talgo has closed the first nine months of the year with not good. Despite the improvement in the main operating indicators, the profit of the manufacturer of trains has fallen by 13 percent to 44.1 million euros, due to the extra costs in Russia and higher taxes. Specifically, the company headed by Jose Maria de Oriol has recorded a “punctual impact of additional charges for the certifications for the Moscow-Berlin project, which will start as of December 17, 14.6 million euros” , Says the firm in a press release.

In turn, the improvement in operating results has led the firm to pay 16 million euros in tax on profits, 7.9 percent more than in the same period of a year. And is that, Talgo has entered 444.5 million euros between January and September, which implies an increase of 24.5 percent over the same period of the previous year, while its operating result has increased by 9.5 per To 84.9 million.

Following the improvement in billing, “the strong execution of the order book (Meca-Medina, Uzbekistan and Kazakhstan), the increase in maintenance services and the increase in the marketing of maintenance equipment,” explains the firm. Looking ahead to the coming months, Talgo expects order book execution to fall short of initial expectations, although it is confident that “revenues will be achieved over previous years”, while “maintenance activity will continue Providing recurring revenue, “the firm said in its forecast review.

For its part, although the ebitda has improved, Talgo says that it has been burdened by the aforementioned costs in the Russian project. “Without extra costs, ebitda would have reached 104.2 million euros, above the company’s targets, with margins of 22.5 percent,” the group said.

Looking ahead, Talgo hopes to win the Renfe AVE macro-route train, which the public company expects to award before the end of the year, to maintain its order backlog. In this sense, the listed company has assured that it is currently competing for new manufacturing and maintenance projects worldwide worth 1.5 billion euros.

In addition, Talgo says that it is already attending “worldwide” tenders with its new regional and local transport train, which was presented recently and will be ready in 2017.

Source : eleconomista