Financial News

25/March/2013

DGAP-News: VTG remains on path of growth in 2012



VTG Aktiengesellschaft / Key word(s): Final Results

25.03.2013 / 11:00


Press Release

VTG remains on path of growth in 2012

- Revenue and EBITDA up on previous year

- Focus on integration and consolidation

- Capacity utilization on a high level, at 90.4 percent

- Mixed trends in logistics divisions

- Proposed dividend increase to EUR 0.37 per share

- Positive trend in business expected in 2013

Hamburg, March 25, 2013. VTG Aktiengesellschaft (WKN: VTG999), one of Europe's leading wagon hire and logistics companies, today presented its figures for the financial year 2012. Compared with the previous year, revenue for the Group rose by 2.3 percent, reaching EUR 767.0 million. Operating profit (EBITDA) increased on the previous year by 3.0 percent to EUR 173.8 million. These results are in the middle of the range predicted in the forecast of mid-February 2012.

'In 2012, the focus of our work was on integrating what had been achieved and, in 2013, we are concentrating on pushing ahead with our strategy of growth', says Dr. Heiko Fischer, CEO of VTG Aktiengesellschaft. 'In the Railcar Division, we will also be investing in new rolling stock this year and making high-quality innovative technology available to our customers. Rail Logistics is to be further expanded on the way to making it one of the leading European providers of rail transports.'

Railcar Division with high level of capacity utilization and many new wagons
In the Railcar Division, the emphasis in 2012 was on expanding the fleet. With orders on hand at the start of the year for 2,500 wagons, 1,700 were completed over the year. These wagons were hired out directly to customers, including some hire contracts for periods of several years. Revenue rose by 3.5 percent, from EUR 303.9 million to EUR 314.6 million. Meanwhile, EBITDA increased by 7.0 percent, from EUR 156.5 million to EUR 167.4 million. The EBITDA margin related to revenue improved, growing from 51.5 percent to 53.2 percent. Overall, the restrained economic growth in Europe had only a minor impact on capacity utilization. After falling slightly from 91.5 percent to 90.0 percent at the end of the third quarter, it went on to recover by the end of the year despite an economic downturn, reaching 90.4 percent.

The new business in Russia was integrated into the VTG Group in 2012 and is now being strengthened with 150 new mineral oil wagons built in Russia. All of these wagons are already on hire. This has increased the Russian fleet to some 1,000 wagons.

Rail Logistics in difficult market environment
In 2012, business in the Rail Logistics Division did not develop as expected in all regions and product segments. The petrochemical goods segment was negatively impacted by a customer insolvency. Transport volumes in the agricultural segment fell significantly as a result of seasonal fluctuations. In the still-young industrial goods segment, however, the division quickly managed to secure longer-term transport contracts with new customers. The VTG subsidiary Transpetrol also undertook its first operations as a railway company, using locomotives for customer transports.

Revenue in the Rail Logistics Division increased by 0.9 percent, from EUR 294.3 million to EUR 296.8 million. EBITDA decreased by 36.2 percent, from EUR 12.1 million to EUR 7.7 million. This figure, however, allows for only limited comparison with the figure for the previous year, which was positively influenced by certain items. After adjustment to take account of this, the drop would be only 20.8 percent. The EBITDA margin on gross profit was 30.3 percent (previous year: 47.3 percent).

Trend in Tank Container Logistics relatively satisfactory
Given the situation globally in the chemical industry, the trend in the Tank Container Logistics Division was satisfactory. The division managed to push up revenue by 2.5 percent, from EUR 151.8 million to EUR 155.5 million. However, EBITDA fell by 8.7 percent to EUR 11.9 million (previous year: EUR 13.1 million). At the end of the year, the EBITDA margin on gross profit was 46.8 percent and therefore below the 2011 level of 51.2 percent.

Due to rising transport costs and unforeseeable changes in flows of transport, there was an overall decline in earnings. Despite the generally restrained trend in a highly competitive environment, the division managed to achieve growth with specific customer groups with the focus on complex, specialized operations. Moreover, the Tank Container Logistics Division expanded its range of services. This included the first container transport of products for the food industry, for example palm oil and glycerin.

Major investment in wagon fleet, one-time items affect result
Overall, 2012 was a demanding year for VTG. Uncertain economic framework conditions and various one-time items slowed down the company's growth slightly. However, the business model once again proved very stable. With its ability to develop innovations for the market and successfully realize large wagon construction projects for customers, VTG was thus able to remain on its path of growth.

Due to the large number of deliveries of newly constructed wagons in 2012, VTG's capital expenditure had increased by the end of the year under review to EUR 220.5 million (previous year: EUR 182.8 million). These funds were largely invested in the Railcar Division, for procuring new wagons and modernizing and expanding the fleet. To finance these activities, VTG used operating cash flow, which, at EUR 136.0 million, was 8.3 percent above the 2011 level of EUR 125.6 million. Funds were also available from the refinancing of the Group in 2011 as well as from operating leases. As of December 31, 2012, the equity capital ratio was 20.4 percent (previous year: 21.7 percent). Total assets increased by 4.5 percent to EUR 1,527.9 million (previous year: 1,461.9 million).

In 2012, VTG thus succeeded in improving its net profit. However, numerous one-time items had a negative impact on profit. Earnings before interest and taxes (EBIT) amounted to EUR 68.8 million, which was 4.8 percent below the level of the previous year.

As of December 31, 2012, VTG had 1,188 employees worldwide, representing an increase of 18 on 2011. Of these employees, 838 were employed in Germany (previous year: 778), thereof 385 in Hamburg (previous year: 360). The remaining 350 employees worked in the companies outside Germany (previous year: 392).

VTG expects upward trend in business in 2013 although market to remain difficult in logistics divisions
VTG expects a positive trend in business in all three operational divisions in 2013. The Executive Board of VTG AG anticipates that the Group will achieve revenue of between EUR 780 and 830 million and EBITDA of between EUR 180 and 190 million.

For the financial year 2012, the Executive Board of VTG intends to propose to the 2013 Annual General Meeting the payment of a dividend of EUR 0.37 per share. This would represent an increase of about 6 percent on the previous year, thereby enabling shareholders to share in the success of the company.
Key figures for the VTG Group

Financial year 2012 2011 Change
in %
Revenue in EUR million 767.0 750.0 2.3
EBITDA in EUR million 173.8 168.7 3.0
EBIT in EUR million 68.8 72.3 -4.8
EBT in EUR million without refinancing* 16.5 28.4 -42.1
Group profit in EUR million without refinancing** 10.3 17.9 -42.4
Depreciation and amortization in EUR million 105.0 96.4 8.8
Capital expenditure in EUR million 220.5 182.8 20.7
Operating cash flow in EUR million 136.0 125.6 8.3
Earnings per share in EUR without refinancing*** 0.41 0.75 -45.3
Railcar Division      
Revenue in EUR million 314.6 303.9 3.5
EBITDA in EUR million 167.4 156.5 7.0
EBITDA margin in % 53.2 51.5  
Rail Logistics Division      
Revenue in EUR million 296.8 294.3 0.9
EBITDA in EUR million 7.7 12.1 -36.2
EBITDA margin in % 30.3 47.3  
Tank Container Logistics Division      
Revenue in EUR million 155.5 151.8 2.5
EBITDA in EUR million 11.9 13.1 -8.7
EBITDA margin in % 46.8 51.2  
  31.12.
2012
31.12.
2011
Change
in %
Number of employees 1,188 1,170 1.5
- in Germany 838 778 7.7
- abroad 350 392 -10.7
  31.12.
2012
31.12.
2011
Change
in %
Balance sheet total in EUR million 1,527.9 1,461.9 4.5
Non-current assets in EUR million 1,309.4 1,225.3 6.9
Current assets in EUR million 218.5 236.7 -7.7
Shareholders equity in EUR million 311.7 317.5 -1.8
Liabilities in EUR million 1,216.2 1,144.5 6.3
Equity ratio in % 20.4 21.7  

 

*EBT 2011 adjusted to take account of special effects of refinancing (unadjusted figure: EUR 5.8 million).
**Group profit 2011 adjusted to take account of special effects of refinancing (unadjusted figure: EUR 3.7 million).
***Earnings per share 2011 adjusted to take account of special effects of refinancing (unadjusted figure: EUR 0.08).

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 54,400 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 2012, VTG generated revenue of EUR 767.0 million and operating profit (EBITDA) of EUR 173.8 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 2012, VTG had 1,188 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


25.03.2013 Dissemination of a Corporate News, transmitted by DGAP - a company of EquityStory AG.
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204946  25.03.2013

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