Financial News

17/August/2017

DGAP-Ad-hoc: VTG updates its earnings forecast - positive and negative effects in 2017 expected


VTG Aktiengesellschaft / Key word(s): Change in Forecast

17-Aug-2017 / 20:22 CET/CEST
Disclosure of an inside information acc. to Article 17 MAR, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.


VTG updates its earnings forecast - positive and negative effects in 2017 expected

Hamburg, August 17, 2017: The Executive Board of VTG AG today decided to update its EBITDA forecast (Earnings before interest, taxes, depreciation and amortization). Group EBITDA for the current financial year is now expected to range between EUR 330 million and EUR 360 million. Hitherto, a slight increase compared to the previous financial result of EUR 345.3 million has been anticipated.

VTG's European railcar leasing business saw an unusually high demand for railcars at the beginning of the third quarter, which requires the recommissioning of approximately 1,100 previously idle railcars. Since the recommissioning of unutilized railcars incurs expenses before additional earnings are realized, the growing demand in 2017 will initially reduce EBITDA. The Executive Board currently expects additional expenses of approximately EUR 4.0 million. Furthermore, it cannot be excluded that, as a result of the favorable economic indicators, the positive development in demand might continue in the fourth quarter and leading to further recommissioning expenses. In addition, at the beginning of August, under the supervision of the European Railway Agency (ERA), technical modifications of certain brake systems were adopted, which should lead to a further improvement of safety in rail freight transport. In this context, VTG needs to adjust the brake systems of approximately 950 container carriers, which will lead to an extraordinary expense of around EUR 2.5 million in 2017.

Finally, the Executive Board has included possible earnings effects resulting from the envisaged acquisition of Nacco in its forecast. Depending upon the date of the approval of the antitrust authorities this may result in a positive or negative earnings contribution depending on an early or late approval.

VTG will publish its second quarter 2017 result on August 29th. According to preliminary numbers Group revenue amounted to EUR 255.0 million in the second quarter 2017 after EUR 243.8 million in the first quarter 2017. EBITDA in the second quarter totaled EUR 86.7 million after EUR 76.6 million in the previous quarter. The utilization rate reached 91.2% at the end of the second quarter (Q1 2017: 90.3%).

The Executive Board confirms its forecast for Group revenue for the current year, according to which revenue is expected to slightly increase compared to previous year (previous year: EUR 986.9 million).

Investor contact:
Christoph Marx
Head of Investor Relations
Telephone: +49 (0) 40 23 54-1351
E-mail: christoph.marx@vtg.com

Press contact:
Gunilla Pendt
Head of Corporate Communications
Telephone: +49 (0) 40 23 54-1341
E-mail: gunilla.pendt@vtg.com


17-Aug-2017 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at www.dgap.de



show this

back