DGAP-News: VTG Aktiengesellschaft: Upward trend continues for VTG
VTG Aktiengesellschaft / Key word(s): Quarter Results/Interim Report
Upward trend continues for VTG
- Group revenue increased by 7.5 percent to EUR 462.8 million - EBITDA of EUR 113.6 million up from prior year
- Increasing wagon fleet capacity utilization
- Continued diversification of fleet with purchase of grain hopper wagons
Hamburg, November 16, 2010. VTG Aktiengesellschaft (WKN: VTG999) continued the positive trend of growth seen in the first six months of 2010 in all operational divisions in the third quarter. Revenue rose compared with the previous year by 7.5 percent, from EUR 430.5 million to EUR 462.8 million. Operating profit (EBITDA) amounted to EUR 113.6 million, representing a rise of EUR 1.2 million, or 1.1 percent, from the previous year. VTG continued diversifying its fleet with the purchase of 1,100 grain hopper wagons. With the acquisition of a 75 percent shareholding in the French rail logistics group TMF, the Rail Logistics Division is expanding into the market for the transport of agricultural products.
Dr. Heiko Fischer, CEO of VTG Aktiengesellschaft, stated: 'We are seeing a clear upward trend in all three operational divisions. Our customers are not only hiring additional wagons, they are also making use of the specific expertise and international network provided by our logistics divisions'. Particularly in the Tank Container Logistics, which is an early indicator for positive economic trends, the upturn in business is clear to see in the double-digit growth in revenue and profit. This again confirms the positive general economic trend.
Wagon Hire: Further increase in fleet capacity utilization
The trend of rising capacity utilization in the Wagon Hire Division, already seen in the half-year results, continued in the third quarter. VTG increased capacity utilization by 0.8 percentage points to 88.2 percent. Additionally, the fleet as a whole was expanded, with the acquisition of 1,100 grain hopper wagons on September 30, 2010. This acquisition continues the company's strategy of diversification.
In the first nine months of the year, revenue for the Wagon Hire Division amounted to EUR 211.9 million. This represents an increase of EUR 1.7 million, or 0.8 percent, from the previous year. EBITDA amounted to EUR 108.0 million, a drop of EUR 2.0 million, or 1.9 percent, from the prior year. The EBITDA margin related to revenue narrowed slightly by 1.4 percent, from 52.3 percent in the previous year to 50.9 percent.
Rail Logistics: VTG enters market for transport of agricultural products
With the purchase of a 75 percent shareholding in the French rail logistics group TMF, VTG is entering the European market for the transport of agricultural products. It expects to have access to wagons for grain, sugar, and other agricultural goods. The result will be expanded and strengthened services offer.
Revenue for the Rail Logistics Division increased in the first nine months by 5.8 percent, from EUR 135.9 million to EUR 143.8 million. EBITDA showed a rise of 23.1 percent, from EUR 5.3 million to EUR 6.5 million. The EBITDA margin on gross profit, at 52.7 percent, was up significantly on that of the previous year (44.4 percent).
Tank Container Logistics: High level of demand
With the increased demand in the Tank Container Logistics Division, the number of wagons deployed grew from 8,100 units in September 2009 to around 9,000. In regional terms, this increase is due to the strengthening of business relationships in Asia, Turkey, and Russia. In the first nine months of the year, Tank Container Logistics reported an increase in revenue of EUR 22.7 million, or 26.9 percent, to EUR 107.1 million. EBITDA saw an increase from the previous year (EUR 5.0 million) of EUR 3.3 million, or 66.5 percent, to a figure of EUR 8.3 million. There was also an improvement in the EBITDA margin on gross profit, which increased from 38.8 percent to 45.0 percent.
Outlook: Forecast for financial year confirmed
In view of the good business situation, the Group anticipates a further slight increase in capacity utilization in the Wagon Hire Division over the last quarter of the year. The performance of the Rail Logistics and Tank Container Logistics Divisions is expected to remain at the high level of the first three quarters. The Executive Board thus re-affirms its half-year forecast and expects revenue for the current financial year to amount to between EUR 600 and 630 million, representing an increase of between 3.0 and 8.0 percent. EBITDA of between EUR 150 and 155 million is expected. This represents a growth of up to 3.5 percent. Additionally, the Executive Board again intends to propose to the Annual General Meeting the payment of a dividend for the financial year 2010.
Key figures for the VTG Group
Financial year 1.1. - 30.9. 1.1. - 30.9. Change 2010 2009 in % Revenue in EUR million 462.8 430.5 7.5 EBITDA in EUR million 113.6 112.4 1.1 EBIT in EUR million 46.9 51.5 -9.0 EBT in EUR million 24.7 28.0 -11.7 Group profit in EUR million 15.7 17.8 -11.9 Depreciation and amortization
in EUR million 66.7 60.8 9.7 Total capital expenditure
in EUR million 115.2 92.8 24.1 Cash flow from operating
activities in EUR million 99.5 104.1 -4.4 Earnings per share in EUR 0.69 0.80 -13.8 Wagon Hire
Revenue in EUR million 211.9 210.2 0.8 EBITDA in EUR million 108.0 110.0 -1.9 EBITDA margin in % 50.9 52.3 Rail Logistics
Revenue in EUR million 143.8 135.9 5.8 EBITDA in EUR million 6.5 5.3 23.1 EBITDA margin in % 52.7 44.4 Tank Container Logistics
Revenue in EUR million 107.1 84.4 26.9 EBITDA in EUR million 8.3 5.0 66.5 EBITDA margin in % 45.0 38.8 9/30 9/30 Change 2010 2009 in % Number of employees 995 1,007 -1.2 - in Germany 696 679 2.5 - abroad 299 328 -8.8 9/30 12/31 Change 2010 2009 in % Balance sheet total
in EUR million 1,335.0 1,277.2 4.5 Non-current assets
in EUR million 1,146.9 1,124.9 2.0 Current assets in EUR million 188.0 152.3 23.5 Shareholders' equity
in EUR million 298.3 296.7 0.5 Total liabilities
in EUR million 1,036.7 980.4 5.7 Equity ratio in % 22.3 23.2
VTG Aktiengesellschaft is one of Europe's leading wagon hire and rail logistics companies. The company has the largest private wagon fleet in Europe. Globally, the fleet consists of some 50,000 wagons, with a focus on tank cars and state-of-the-art high capacity freight cars and flat cars. In addition to the hiring of wagons, the Group offers global tank container transports and comprehensive multi-modal logistics services, mainly around rail transport.
With the combination of its three interlinked divisions Wagon Hire, Rail Logistics and Tank Container Logistics, VTG offers its customers a high-performance platform for international transport of their freight. The Group has many years of experience and specific expertise, in particular in the transport of liquid and sensitive goods. Its customers include numerous well-known companies from almost every industrial sector, for example the chemical, petroleum, automotive, paper and agricultural industries.
In the financial year 2009, VTG generated revenue of EUR 581.5 million and operating profit (EBITDA) of EUR 149.4 million. Via its subsidiaries and affiliates the company, which has its head office in Hamburg, is mainly present in Europe, Asia and North America. As at 31 December 2009, VTG had 963 employees worldwide in consolidated companies. Since June 2007, VTG AG has been listed on the official Prime Standard market of the Frankfurt Stock Exchange and also on the SDAX (WKN: VTG999).
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Further information at www.vtg.com
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Company: VTG Aktiengesellschaft
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