Financial News

13/April/2011

DGAP-News: VTG Aktiengesellschaft: VTG reports increased profits and continues its growth for 2011



VTG Aktiengesellschaft / Key word(s): Final Results

13.04.2011 / 10:00

Press Release

VTG reports increased profits and continues its growth for 2011

- Increased revenue and EBITDA compared to the previous year

- Extended wagon fleet with new acquisitions

- High growth in the Logistics Division

- Positive outlook for 2011

- Proposing 10 percent dividend increase to EUR 0.33 per share

Hamburg, April 13, 2011. VTG Aktiengesellschaft (WKN: VTG999) today announced its figures for the financial year 2010. Compared to the previous year, Group revenues rose by 8.2 percent to EUR 629.4 million. Operating profit (EBITDA) rose by 3.4 percent to EUR 154.4 million, achieving the higher end of previous forecast.

'As an integral component of the value chain in many European industries, and after completing 2009 without being affected by the crisis, VTG was again highly successful in 2010. On our growth path, we succeeded in positively positioning and further developing our business lines in the market', concludes Dr. Heiko Fischer, Chairman of the Board of VTG Aktiengesellschaft. In particular, VTG was able to achieve substantial growth especially in its logistics business, and to concentrate on the implementation of additional strategic goals. 'With our new acquisitions of rail freight cars and wagons for agricultural products, we succeeded in taking a big step towards the diversification of our fleet. We are now positioned for our future and it allows us to offer our customers a broader product portfolio', adds Fischer.

In 2010, Group revenues rose by 8.2 percent to EUR 629.4 million. EBITDA rose by 3.4 percent compared to the previous year, to EUR 154.4 million, returning to the levels achieved in 2008, the Company's record year. Group earnings saw a slight decline by EUR 1.9 million to EUR 20.6 million as a result of higher depreciations. As of December 31, 2010, the Group employed 999 staff, including 709 in Germany and 290 abroad.

Higher Wagon Hire utilization rate
In 2010, revenue in the Wagon Hire Division amounted to EUR 283.6 million, 1.9 percent below the prior year's figure of EUR 289.0 million. The slight drop in revenue is due to the activities of Graaff wagon manufacturing plant, which, after a large external contract in 2009, again produced significantly more wagons for VTG in 2010. Only the Graaff sales from contracts outside the Group are shown as external revenues. At EUR 145.4 million, EBITDA was 0.6 percent below the previous year's result; the revenue related EBITDA margin was 51.2 percent and thus 0.6 percentage points higher than in the previous year. Overall, the year was characterized by increasingly dynamic business trends, primarily reflected in the higher utilization rate of 89.1 percent recorded as of December 31, 2010.

The acquisition of some 1,100 grain wagons as well as the purchase of 720 freight cars from the Rexwal Group further strengthened this segment, helping the company continue its diversification policy in new market segments. Currently, almost 50,000 VTG wagons are in circulation throughout Europe.

Rail Logistics develops new customer groups and growth potential
The Rail Logistics Division significantly strengthened its market position in Europe in 2010, further expanding its business and extending key customer contracts by several years. Revenue rose by 12.2 percent to EUR 201.4 million. At EUR 8.4 million, EBITDA was 24.8 percent higher than in the previous year, while gross profit related EBITDA margin rose to 49.2 percent.

With the acquisition of the French rail logistics company TMF, which became effective at the start of the fourth quarter of 2010, this division expanded its agricultural product transport related range of services. Business units in the Czech Republic and in Serbia were also founded. These strategic measures as well as additional alliances abroad have resulted in new opportunities for growth in the Rail Logistics Division.

Growth strategy developed for the Tank Container Logistics Division
In this segment, customers have shown a tendency towards preferring longer-term contracts because of capacity bottlenecks in 2010. Moreover, Tank Container Logistics also benefited from its advantageous regional positioning, for example in China and in the growth markets of Eastern and Southern Europe. Therefore, a detailed strategy was developed to enable further growth in a highly competitive environment characterized by complex requirements.

In 2010, high demand for transport services in all regions led to exponential growth in this devision. Revenue rose by 27.7 percent to EUR 144.5 million, and EBITDA increased by 53.1 percent to EUR 11.2 million. The EBITDA margin on gross profit could also be increased, from 41.4 percent in 2009 to 45.4 percent in 2010.

Investment in growth and quality
VTG impressively continued on its course of growth in 2010, making substantial investments in growth and quality. Investments totaled EUR 168.8 million (prior year: EUR 153.5 million) and were again focused on the Wagon Hire Division (95.7 percent). The company essentially is self-financed with its operating cashflow, which fell only slightly short of the previous year's EUR 144.8 million at EUR 137.8 million. At 23.1 percent, the equity ratio as at December 31, 2010 remained at the same level as in the previous year (23.2 percent). The total assets rose by 6.1 percent to EUR 1,355.2 million, although the balance sheet structure remained virtually unchanged.

Outlook for 2011: Upward business trends in all three business divisions
For 2011, the VTG Group is counting on distinctly positive trends in all three of its divisions. The Executive Board therefore assumes that the utilization rate in Wagon Hire Devision will continue to rise and that the logistics divisions will continue on their growth paths. The company expects revenue to increase between EUR 720 and 760 million, with EBITDA of EUR 165 to 170 million.

VTG's Board intends to propose a payment of a EUR 0.33 dividend for the financial year 2010 at the 2011 Annual General Meeting, representing a 10 percent dividend increase in conformity with VTG's sustained dividend policy.

VTG Aktiengesellschaft - Key Figures

Financial year 2010 2009 Change
      in %
Revenue in EUR million 629.4 581.5 8.2
EBITDA in EUR million 154.4 149.4 3.4
EBIT in EUR million 63.0 66.9 -5.9
EBT in EUR million 32.6 35.4 -7.8
Group profit in EUR million 20.6 22.5 -8.5
Depreciation, amortization      
in EUR million 91.4 82.5 10.8
Investments in EUR million 168.8 153.5 9.9
Cashflow in EUR million 144.0 151.8 -5.2
Earnings per share      
in EUR million 0.91 1.01 -9.9
Wagon Hire
Revenue in EUR million 283.6 289.0 -1.9
EBITDA in EUR million 145.4 146.3 -0.6
EBITDA margin in % 51.2 50.6
Rail Logistics
Revenue in EUR million 201.4 179.4 12.2
EBITDA in EUR million 8.4 6.7 24.8
EBITDA margin in % 49.2 41.7
Tank Container Logistics
Revenue in EUR million 144.5 113.1 27.7
EBITDA in EUR million 11.2 7.3 53.1
EBITDA margin in % 45.4 41.4
31/12/ 31/12/ Change
  2010 2009 in %
Number of Employees 999 963 3.7
- in Germany 709 678 4.6
- abroad 290 285 1.8
31/12/ 31/12/ Change
  2010 2009 in %
Total assets      
in EUR million 1,355.2 1,277.2 6.1
Non-current assets      
in EUR million 1,174.8 1,124.9 4.4
Current assets      
in EUR million 180.4 152.3 18.5
Shareholders' equity      
in EUR million 313.0 296.7 5.5
Liabilities in EUR million 1,042.2 980.4 6.3
Shareholders' equity ratio      
in % 23.1 23.2

About VTG:

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 2010, VTG generated revenue of EUR 629.4 million and operating profit (EBITDA) of EUR 154.4 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 2010, VTG had 999 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).

Media contact:

Monika Gabler

Head of Corporate Communications

Telephone: +49 (0) 40 23 54-1341

Fax: +49 (0) 40 23 54-1340

Email: monika.gabler@vtg.com

Investor Relations contact:

Felix Zander

Head of Investor Relations

Telephone: +49 (0) 40 23 54-1351

Fax: +49 (0) 40 23 54-1350

Email: felix.zander@vtg.com

Further information at www.vtg.com



End of Corporate News


13.04.2011 Dissemination of a Corporate News, transmitted by DGAP - a company of EquityStory AG.
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119655  13.04.2011

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