Financial News

21/February/2012

DGAP-News: VTG Aktiengesellschaft: VTG continues on path of controlled growth in 2011



VTG Aktiengesellschaft / Key word(s): Preliminary Results/Forecast

21.02.2012 / 07:30


Press Release

VTG continues on path of controlled growth in 2011

- Revenue up 19.2 percent and EBITDA up by 9.3 percent

- Railcar fleet utilization increases to 91.5 percent

- New Group financing structure secures future growth

- Commencement of railcar leasing operations in Russia

- Doubling of fleet in North America

- Rail Logistics enlarged and with unified market approach

- Proposed dividend increase to EUR 0.35

- Outlook for 2012: slight growth of revenue and EBITDA anticipated

Hamburg, February 21, 2012. VTG Aktiengesellschaft (WKN: VTG999) today presented its preliminary unaudited figures for 2011. According to these figures, Group revenue rose by 19.2 percent from the previous year, to EUR 750.0 million. Operating profit (EBITDA) increased by 9.3 percent compared with 2010, reaching a level of EUR 168.7 million, achieving the upper half of management's forecast.

'We used the year 2011 to actively push forward our international expansion and once again strengthen the company', states Dr. Heiko Fischer, CEO of VTG Aktiengesellschaft. 'The strategic acquisitions in Russia and North America, the two largest rail transport markets in the world, as well as a large order book for the construction of new wagons for the European market were made possible by the new financing structure of the Group. They serve as proof that we are on a continual path of growth and mean we are confidently looking towards 2012'.

Growth in all operational divisions
Rail freight transport in Germany grew by 5.1 percent in 2011. As a consequence VTG recorded rising revenue in all three operational divisions. The Railcar Division saw positive developments in almost every area in the financial year 2011. This was particularly so for capacity utilization, which rose continually throughout the year, reaching its annual peak on December 31, 2011 (91.5 percent). This was accompanied by a rise in revenue of 7.2 percent, to EUR 303.9 million. Additionally, the division significantly strengthened its position with various measures. These included the acquisition of the 300-strong wagon fleet of the Italian competitor Sogerent, the takeover of the Railcraft group of companies in Russia - bringing in another 870 wagons - and the doubling of the fleet in North America to more than 4,000 wagons due to the takeover of the activities of SC Rail Leasing America.

In Rail Logistics, revenue increased significantly by 46.2 percent in the financial year 2011, reaching EUR 294.3 million. The acquisition of the rail logistics company TMF (specialized in the agricultural industry) in 2010, and the addition of the Polish subsidiary of the Transpetrol Group to the group of consolidated companies at the beginning of 2011 also had positive effects on the business. Moreover, new customers from all over Europe, a strong demand for transport services in Central and Eastern Europe, as well as numerous new activities from the Netherlands and Belgium towards Germany, Austria, and Poland resulted in a further rise in revenue. Rail Logistics used the year 2011 to draw up its strategy for growth for the coming years. It expanded its product portfolio to three product segments: liquids, agricultural goods and industrial goods and will be expanding sales and operations in these segments. This also includes the establishment of new customer service and operations locations. This unified market approach, an increasingly dense network, as well as interrelated processes lead to distinct added value for the customers.

Tank Container Logistics was able to push ahead on its path of growth on its worldwide markets in 2011. Demand, which rose sharply at the beginning of 2011, leveled off slightly in the third quarter and then stabilized at this level. Despite the decrease in transportation volumes already commencing in several regions in 2011, revenue increased by 5.1 percent to EUR 151.8 million. While business within Europe and America developed well, transports within Asia and Asian Exports decreased slightly.

In May 2011, VTG expanded and broadened its financing arrangements. The previous syndicated loan was replaced with several long maturity US private placement issues amounting to EUR 450 million and USD 40 million and a syndicated loan of EUR 450 million. The current lines of credit can be used flexibly, meaning the Group has laid a solid foundation for future growth.

As of December 31, 2011, VTG had 1,170 employees worldwide, an increase of 171 from 2010. This significant rise in the number of employees is primarily due to the takeovers in Italy, Russia and North America as well as expansion in the Rail Logistics Division.

VTG continues on path of growth in 2012
Despite current uncertainties, the Executive Board of VTG expects the global economic situation to remain in total stable in 2012. With the new financing structure of the Group, VTG has laid the foundation for growth on a sustainable basis. A total of 2,500 new wagons, firmly ordered at the end of 2011, will be delivered in 2012 and in the beginning of 2013. They will strengthen and expand the European fleet. The logistics divisions expect to see a good business performance from the implementation of their new strategies. Based on the above and asuming that the current sovereign debt crisis does not worsen, the Executive Board of VTG expects revenue for the Group of between EUR 760 and 800 million in the financial year 2012 and EBITDA of between EUR 170 and 178 million.

The Executive Board of VTG Aktiengesellschaft intends to propose to the Annual General Meeting 2012 the payment of a dividend of EUR 0.35 for the financial year 2011. This is an increase of 6 percent and is in line with the VTG Aktiengesellschaft policy of reliable, continued payment of dividends.

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 53,800 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 Railcar, 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


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157459  21.02.2012

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