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DGAP-News: VTG Aktiengesellschaft: VTG increases operating profit in 2011 and realizes growth targets

VTG Aktiengesellschaft / Key word(s): Final Results

28.03.2012 / 10:00

VTG increases operating profit in 2011 and realizes growth targets

- Revenue and EBITDA up significantly on previous year

- Wagon fleet expands due to acquisitions and building of new wagons

- Rail Logistics with a new structure

- New financing of the Group provides foundation for further growth

- Proposed dividend increase to EUR 0.35 per share

- Modest growth expected in 2012

Hamburg, March 28, 2012. VTG Aktiengesellschaft (WKN: VTG999), one of Europe's leading wagon hire and rail logistics companies, today presented its figures for the financial year 2011. Compared with 2010, revenue for the Group rose by 19.2 percent, reaching EUR 750.0 million. Operating profit (EBITDA) also developed positively, increasing by 9.3 percent on the previous year to EUR 168.7 million. This was in the upper half of the range forecasted by VTG.

Dr. Heiko Fischer, CEO of VTG Aktiengesellschaft, provides his analysis: 'In 2011, its 60th year, VTG managed to expand its business significantly, particularly at an international level. Our growth is supported both by organic developments in the divisions and by acquisitions'. He goes on: 'New business and the strengthening of customer relationships have brought a sharp rise in revenue, particularly in Rail Logistics. In the Railcar Division, we have focused equally on acquisitions and modernizing our fleet.'

In 2011, Group revenue rose by 19.2 percent to EUR 750.0 million. EBITDA increased on the previous year by 9.3 percent, reaching EUR 168.7 million. Net profit for the Group, adjusted to take account of the costs of refinancing, fell by EUR 2.7 million to EUR 17.9 million. This was mainly due to higher interest expenses. As of December 31, 2011, the Group employed 1,170 employees, thereof 778 in Germany and 392 abroad.

Steady growth in Railcar Division
In 2011, the Railcar Division recorded a continued increase in capacity utilization, fleet acquisitions in the world's largest rail freight markets and a well-filled order book with orders for 2,500 new railcars. Revenue amounted to EUR 303.9 million and was therefore up 7.2 percent on the previous year (EUR 283.6 million). EBITDA increased by 7.7 percent to EUR 156.5 million. The EBITDA margin related to revenue, at 51.5 percent, showed a slight improvement on 2010 of 0.3 percentage points. In the financial year 2011, the Railcar Division performed at a high level in almost every segment. Fleet utilization increased steadily over the year, reaching its highest level of 91.5 percent for the year on December 31, 2011 (December 31, 2010: 89.1 percent).

The Railcar Division was strengthened further in 2011 through various acquisitions. With the acquisition of the fleet of the Italian competitor Sogerent in the first quarter, VTG was able to consolidate its market position in Europe. With the takeover of the Railcraft group of companies in May 2011, VTG successfully commenced operations in the Russian market. In December 2011, with the takeover of the operations of the US railcar leasing company SC Rail Leasing America, VTG more than doubled its number of railcars in North America and broadened its customer base significantly.

Rail Logistics expands division and creates unified market presence
The Rail Logistics Division can look back on a successful year 2011. It broadened and strengthened its customer relations considerably, new customers throughout Europe asked for transport services, including services with new relations. Revenue increased by 46.2 percent, from EUR 201.4 million to EUR 294.3 million. EBITDA, at EUR 12.1 million, was 43.9 percent above that of the previous year (EUR 8.4 million). The EBITDA margin on gross profit was 47.3 percent (previous year: 49.2 percent).

For Rail Logistics, in addition to its many new customers and business operations, the 2010 acquisition of the rail logistics company TMF (a specialist in the agricultural sector) had a positive impact. The addition of the Polish subsidiary of the Transpetrol Group to the group of consolidated companies also contributed to the positive trend. Furthermore, Rail Logistics reorganized its structure to enable it to integrate the most recent acquisitions and also created a unified market presence. In future, its focus will be on the three product segments of liquids, agricultural products and industrial goods. The expansion of the product range also involves the setting up of new locations. With this further development, the general objective is to expand into new regions and gain new customers throughout Europe and take more traffic off the road and onto the railway.

Tank Container Logistics continues on path of growth in global markets
In the Tank Container Logistics Division, revenue increased in 2011 by 5.1 percent, rising from EUR 144.5 million in 2010 to EUR 151.8 million. EBITDA rose by 17.2 percent to EUR 13.1 million (previous year: EUR 11.2 million). At the end of the year, the EBITDA margin on gross profit was 51.2 percent. This equaled a rise of 5.8 percentage points compared with the previous year (45.4 percent).

For Tank Container Logistics, the year 2011 began with a significant rise in demand for transport services. However, demand fell off slightly in the third quarter, stabilizing at this level in the final quarter. The reason for this was the growing uncertainty about future developments in the markets relevant for the chemical industry. The Division reported good performance in the intra-European transport market. For overseas transports, however, the picture was mixed: whereas North American and European export transports increased in the year under review, traffic within Asia and exports from Asia declined slightly.

New Group financing structure provides secure basis for growth
In 2011, the VTG Group placed its financing on a new basis. In early May, the former syndicated loan was redeemed and replaced with a US private placement bond issue of EUR 450 million and USD 40 million and a new syndicated loan amounting to EUR 450 million. This move enables VTG to continue its strategy of growth. The refinancing brings one-time expenses of EUR 22.6 million.

In 2011, capital expenditure rose from EUR 168.8 million to EUR 182.8 million. These funds were largely invested in the new acquisitions and in modernizing and expanding the wagon fleet. They were also used to expand the logistics divisions. The funds came mainly from operating cash flow, which, at EUR 125.6 million, was 8.8 percent below the figure for 2010 (EUR 137.8 million). Funds from the new financing arrangements for the Group were also used. As of December 31, 2011, VTG's equity ratio was 21.7 percent (previous year: 23.1 percent). Total assets increased by 7.9 percent, from EUR 1,355.2 million to EUR 1,461.9 million.

VTG expects slight upward trend in business in 2012
VTG expects to perform well in 2012 in all three divisions, however with lower levels of growth than 2011. For the financial year 2012, the Executive Board of VTG AG expects revenue for the Group between EUR 760 - 800 million and EBITDA of EUR 170 -178 million.

The Executive Board of VTG intends to propose to the 2012 Annual General Meeting the payment of a dividend for the financial year 2011 of EUR 0.35 per share.

Key figures for the VTG Group

Financial year 2011 2010 Change
      in %
Revenue in EUR million 750.0 629.4 19.2
EBITDA in EUR million 168.7 154.4 9.3
EBIT in EUR million 72.3 63.0 14.8
EBT in EUR million      
without refinancing* 28.4 32.6 -12.7
Group profit in EUR million      
without refinancing** 17.9 20.6 -13.0
Depreciation and amortization      
in EUR million 96.4 91.4 5.5
Capital expenditure in EUR million 182.8 168.8 8.3
Operating cash flow in EUR million 125.6 137.8 -8.8
Earnings per share      
in EUR without refinancing*** 0.75 0.91 -17.6
Railcar Division      
Revenue in EUR million 303.9 283.6 7.2
EBITDA in EUR million 156.5 145.4 7.7
EBITDA margin in % 51.5 51.2  
Rail Logistics Division      
Revenue in EUR million 294.3 201.4 46.2
EBITDA in EUR million 12.1 8.4 43.9
EBITDA margin in % 47.3 49.2  
Tank Container Logistics Division      
Revenue in EUR million 151.8 144.5 5.1
EBITDA in EUR million 13.1 11.2 17.2
EBITDA margin in % 51.2 45.4  
  31.12. 31.12. Change
  2011 2010 in %
Number of employees 1,170 999 17.1
- in Germany 778 709 9.7
- abroad 392 290 35.2
  31.12. 31.12. Change
  2011 2010 in %
Balance sheet total      
in EUR million 1,461.9 1,355.2 7.9
Non-current assets      
in EUR million 1,225.3 1,174.8 4.3
Current assets in EUR million 236.6 180.4 31.2
Shareholders equity      
in EUR million 317.5 313.0 1.4
Liabilities in EUR million 1,144.4 1,042.2 9.8
Equity ratio in % 21.7 23.1  


*EBT 2011 with refinancing = EUR 5.8 million = -82.1%
**Group profit 2011 with refinancing = EUR 3.7 million = -82.1%
***Earnings per share 2011 with refinancing = EUR 0.08 = -91.2%

About VTG:

VTG Aktiengesellschaft is one of Europe's leading railcar leasing and rail logistics companies. The company has the largest private railcar fleet in Europe. Globally, the fleet consists of some 53,800 railcars, 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 comprehensive multi-modal logistics services, mainly around rail transport, and global tank container transports.

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 2011, VTG generated revenue of EUR 750.0 million and operating profit (EBITDA) of EUR 168.7 million. Via its subsidiaries and affiliates the company, which has its head office in Hamburg, is mainly present in Europe, Asia, Russia and North America. As at 31 December 2011, VTG had 1,170 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
Phone: +49 (0) 40 23 54-1341
Fax: +49 (0) 40 23 54-1340

Investor Relations contact:
Felix Zander
Head of Investor Relations
Phone: +49 (0) 40 23 54-1351
Fax: +49 (0) 40 23 54-1350

Further information at

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162407  28.03.2012