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DGAP-News: VTG Aktiengesellschaft: VTG reports slight increase in revenue and new business

VTG Aktiengesellschaft / Key word(s): Half Year Results

15.08.2012 / 07:30

VTG reports slight increase in revenue and new business

- Railcar Division reports high level of capacity utilization of 90.6 percent

- Logistics Divisions with new traffic on the railway and stable demand for transport services in Tank Container Logistics

- Revenue up on previous year, EBITDA down slightly

- Interest charges from new financing structure affect Group profit

- Forecast for financial year re-affirmed, with greater specificity

Hamburg, August 15, 2012. The Hamburg-based wagon hire and rail logistics company VTG Aktiengesellschaft (WKN: VTG999) increased its revenue slightly in the first half of 2012. Revenue rose by 1.6 percent, from EUR 373.8 million to EUR 379.9 million. Operating profit (EBITDA) fell slightly, by 2.3 percent, to EUR 82.0 million, while operating cash flow rose 6.6 percent to EUR 64.9 million. Additionally, with two new major long-term contracts, VTG is continuing to perform a substantial number of rail transports of goods. The new contracts are with the international commodity trading corporation Glencore and the German aluminium producer Novelis.

'In view of the unsettled environment and the clouding of the economy, we are basically satisfied with the results for the first half year, although we had set our bar a little higher', explains Dr. Heiko Fischer, CEO of VTG Aktiengesellschaft. 'A whole range of individual items such as increased costs for maintenance and human resources, higher levels of depreciation from investment in wagons and interest charges from the new financial structure affected the result. However, we also managed to generate new business and thereby lay the foundation for future growth in addition to demonstrating clearly the competitiveness of rail freight transport', says Fischer.

Railcar Division: Capacity utilization stable, at high level

Through new hire contracts, the Railcar Division was able to push up revenue in the first half of 2012 to EUR 155.5 million. This represents an increase of EUR 8.4 million, or 5.7 percent, on the same period of the previous year (EUR 147.1 million). EBITDA amounted to EUR 77.7 million, thereby remaining at almost the same level as for the first six months of 2011 (EUR 77.9 million). This was due to increased costs because of the integration of acquisitions in Russia and the U.S. and maintenance regulations. The EBITDA margin related to revenue was 50.0 percent (H1 2011: 53.0 percent), an increase on the figure of the previous quarter (49,6 percent). Capacity utilization, at 90.6 percent, remained at exactly the same, high level of the previous quarter. The insolvency of a customer from the mineral oil industry also had a generally negative effect on capacity utilization and the EBITDA margin in the first half of the year.

The Railcar Division successfully secured a major international contract with the global Glencore Group. The commodity trading company will be deploying a total of 300 VTG tank wagons for the transport of liquids. The first 50 wagons were handed over to Glencore a few weeks ago. They are equipped with the technology required for transporting pure vegetable oil. Glencore dispatches the oil from its new plant in Foktő in Hungary two to three times a week to filling stations and warehouses throughout Europe.

Rail Logistics Division: Period of consolidation after restructuring

In the Rail Logistics Division, revenue decreased by 2.7 percent in the first half of 2012, to a level of EUR 145.4 million (H1 2011: EUR 149.4 million). EBITDA, at EUR 4.6 million, was also below the level for the same period of 2011 (EUR 6.5 million). The EBITDA margin on gross profit was 34.6 percent (H1 2011: 50.2 percent). With its focus on new product groups, the division has been positioned to reach a wider market since the beginning of the year. This incurred pre-operating costs, with, for example, changes having to be made to internal structures. Mainly the fact that some items that positively impacted the figures in 2011 no longer applied, but also the pre-operating costs and lower volumes of transport (particularly in the agricultural sector), all led to a fall in revenue. The insolvency of a customer also had a negative impact on business.

VTG's Rail Logistics Division successfully took up new transport operations for the aluminium producer Novelis. The VTG subsidiary Transpetrol is taking charge of the entire logistics operation for the transport of aluminium coils. These rolled aluminium sheets have multiple applications ranging from use in the drinks sector to the automotive industry. In this role, Transpetrol acts both as a forwarder and as a railway company directly in charge of operating the trains for Novelis. Since July 1, 2012, a block train weighing some 3,000 tonnes has been running daily, connecting the various operational points of Novelis, the world's largest manufacturer of aluminium rolled products and market leader in the recycling of beverage cans. To provide this demanding train service, Transpetrol has hired two high-performance freight locomotives for the logistics contract, which is to run for a number of years. The plan is for operation on around 350 days per year. This is also the first time locomotives have been in operation for VTG in scheduled traffic.

Tank Container Logistics Division: Steadfast despite tough competitive environment

Revenue in the Tank Container Logistics Division amounted to EUR 79.0 million, representing an increase of EUR 1.7 million, or 2.2 percent, on the figure for the first half of 2011 (EUR 77.3 million). EBITDA fell to a level of EUR 5.9 million compared with EUR 6.3 million for the first six months of the previous year. The EBITDA margin on gross profit also narrowed slightly, to 46.5 percent (H1 2011: 49.4 percent). The uncertainties about future developments in the eurozone and the forecasts of lower levels of growth in China had no significant effect on demand for transport services in the first half of the year. Strict cost management in the chemical industry, along with increasingly aggressive competition, led to noticeably intensified pressure on the margins. Tank Container Logistics managed to stand its ground well in Europe in this environment and also generated additional volumes of transport in Asia.

Rise in employee numbers
As of June 30, 2012, the VTG Group had 1,203 employees, an increase of 121 compared with the same period of the previous year. Of this number, 818 were employed in Germany (H1 2011: 738), 368 thereof in Hamburg (H1 2011: 337). 385 were employed in the companies abroad (H1 2011: 344). The number of employees rose in all business divisions.

Outlook for 2012
Against the background of the current economic environment, the Executive Board of VTG AG principally confirms its forecast for the Group for the financial year 2012 as issued in February 2012. It is expected that revenue will reach between EUR 760 and 800 million and EBITDA between EUR 170 and 178 million. Based on the assumption that economic growth will be somewhat restrained, the Executive Board however expects revenue to be in the lower half of the stated range and EBITDA to be at the lower limit of the stated range.

Key figures

Financial year 1.1. - 30.6. 2012 1.1. - 30.6. 2011 Change in %
Revenue in EUR million 379.9 373.8 1.6
EBITDA in EUR million 82.0 83.9 -2.3
EBIT in EUR million 31.4 36.8 -14.6
EBT in EUR million      
(H1/2011 without      
refinancing expenses*) 6.2 19.3 -67.7
Group profit in EUR million      
(H1/2011 without      
refinancing expenses **) 3.9 12.1 -67.7
Depreciation in EUR million 50.6 47.1 7.4
Capital expenditure in EUR million 80.1 79.6 0.6
Operating cash flow in EUR million 64.9 60.9 6.6
Earnings per share in EUR      
(H1/2011 without      
refinancing expenses ***) 0.14 0.53 -73.6
Railcar Division      
Revenue in EUR million 155.5 147.1 5.7
EBITDA in EUR million 77.7 77.9 -0.3
EBITDA margin in % 50.0 53.0  
Rail Logistics Division      
Revenue in EUR million 145.4 149.4 -2.7
EBITDA in EUR million 4.6 6.5 -28.6
EBITDA margin in % 34.6 50.2  
Tank Container Logistics Division      
Revenue in EUR million 79.0 77.3 2.2
EBITDA in EUR million 5.9 6.3 -6,8
EBITDA margin in % 46.5 49.4  
  30.06.2012 30.06.2011 Change in %
Number of employees 1,203 1,082 11.2
- in Germany 818 738 10.8
- abroad 385 344 11.9
  30.06.2012 31.12.2011 Change in %
Balance sheet total in EUR million 1,458.5 1,461.9 -0.2
Non-current assets in EUR million 1,253.0 1,225.3 2.3
Current assets in EUR million 205.5 236.6 -13.2
Shareholders equity in EUR million 310.0 317.5 -2.4
Liabilities in EUR million 1,148.5 1,144.4 0.4
Equity ratio in % 21.3 21.7  


* EBT H1/2011 adjusted to take account of special effects of refinancing (unadjusted figure: EUR 0.5 million).
** Group profit H1/2011 adjusted to take account of special effects of refinancing (unadjusted figure: EUR 0.3 million).
*** Earnings per share H1/2011 adjusted to take account of special effects of refinancing (unadjusted figure: EUR -0.03 million).

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
Telephone: +49 (0) 40 23 54-1341
Fax: +49 (0) 40 23 54-1340

Investor Relations contact:

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

Further information at

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181650  15.08.2012