Financial News

14/November/2013

DGAP-News: VTG pushes up revenue and net profit further



VTG Aktiengesellschaft / Key word(s): Quarter Results/Interim Report

14.11.2013 / 07:30


Press Release

VTG pushes up revenue and net profit further

- Revenue climbs 4.6 percent to EUR 599.1 million

- EBITDA up 5.3 percent, EBIT 7.6 percent

- Railcar Division gains customers from steel industry

- VTG agrees joint venture with Kuehne + Nagel

- Tank Container Logistics develops new network of partners

- Forecast for 2013 re-affirmed - revenue and EBITDA up on previous year

Hamburg, November 14, 2013. VTG Aktiengesellschaft (WKN: VTG999), one of Europe's leading wagon hire and rail logistics companies, once again pushed up its revenue at the end of the third quarter of 2013. Compared with the same period of the previous year, revenue for the Group increased by 4.6 percent to EUR 599.1 million (previous year: EUR 573.0 million). There was also a positive trend in operating profit (EBITDA), which increased by 5.3 percent to EUR 135.1 million (previous year: EUR 128.3 million).

'The results at the end of the nine-month period show the continuation of a steady upward trend, confirming that we are right in our strategy', explains Dr. Heiko Fischer, CEO of VTG Aktiengesellschaft, continuing: 'We are looking full of confidence and excitement to the year 2014, which will also be one of new possibilities in the logistics divisions'.

There was a pleasing trend in earnings before interest and taxes (EBIT), which rose by 7.6 percent to EUR 56.5 million (previous year: EUR 52.4 million). The Group also managed to increase earnings before taxes (EBT) by 43.8 percent to EUR 19.1 million (previous year: EUR 13.3 million) and net profit for the Group by 42.6 percent to EUR 11.9 million (previous year: EUR 8.4 million). At EUR 0.50, earnings per share also exceeded the level for the equivalent period of the previous year (EUR 0.33). Consequently, operating cash flow rose to EUR 116.6 million (previous year: 102.8 million). The increase in net profit was due primarily to the trend in the Railcar Division, which saw above-average growth. However, throughout the period, the logistics divisions were affected by pressure on margins and falling demand in certain segments.

New customers and business in the Railcar Division

The Railcar Division succeeded in gaining a key customer in the steel industry, with this customer using 180 VTG wagons to transport some two million tonnes of limestone annually across Germany. The division also managed to expand its business with a further steel industry customer with international operations. 330 newly built wagons are in future to transport coal and coke within France.

At the end of the third quarter of 2013, revenue in the Railcar Division had increased by 8.2 percent to EUR 253.1 million (previous year: EUR 233.9 million). The main reason for this increase was the newly built wagons delivered in 2012 and in the current financial year. EBITDA also increased, rising in fact by 9.4 percent to EUR 134.3 million (previous year: 122.8 million). Due to the ongoing process of withdrawal of certain wagons from service as part of a continuing fleet management program, there was a further slight reduction in the size of the fleet, to a current level of 52,700 wagons (end of 2012: 54,400 wagons). Fleet capacity utilization fell to 89.4 percent (Q2/2013: 89.7 percent). Along with the only moderate improvement in the economic trend, this drop was due to the fact that a number of wagons in the Baltic states had to be temporarily taken out of service because of regulatory restrictions.


Rail Logistics Division finalizes joint venture with Kuehne + Nagel

At the end of September, VTG and Kuehne + Nagel signed an agreement to merge certain rail logistics operations. With this joint venture, VTG Rail Logistics is firmly consolidating its leading position as Europe's largest private rail logistics company. VTG will assume operational control of the new company, with a 70 percent shareholding. Subject to the approval of the antitrust authorities, the company will commence operations on January 1, 2014.

In the first nine months of 2013, revenue in the Rail Logistics Division increased by 2.9 percent to EUR 227.8 (previous year: EUR 221.4 million). The main factor contributing to this was the positive trend in the petrochemical goods and industrial goods market segments. However, along with some one-time items, the continuing difficulties with demand in France in the agricultural products segment had a negative impact on profit for the division as a whole. Consequently, EBITDA decreased by 49.0 percent to EUR 3.4 million (previous year: EUR 6.6 million).

Tank Container Logistics Division joins a new network of partners

From the second quarter of 2014, VOTG will be project partner in a new industry network. This network will assume operational responsibility for the management and strategic optimization of the supply chain of Bayer MaterialScience in the transport of isocyanates. This chemical product is used, among other things, in the production of foams. The contract will run initially for four years. The total volume of revenue within this collaborative network amounts to hundreds of millions of euros. VOTG will be responsible for the global tank container transports.

In the first nine months, revenue in the Tank Container Logistics Division remained stable, at EUR 118.2 million (previous year: EUR 117.7 million). However, due to the continuing competitive pressure and a recent weakening of the US dollar, EBITDA decreased by 11.1 percent to EUR 7.8 million (previous year: EUR 8.8 million).

Forecast for 2013 re-affirmed

The Executive Board of VTG AG re-affirms its forecast for the Group for the financial year 2013. It continues to anticipate revenue for the Group in the range EUR 780 - 830 million for 2013. It is also still expected that the Group will achieve a level of EBITDA at the lower end of the forecast range of EUR 180 - 190.
Key figures for VTG Aktiengesellschaft

1.1. - 30.9. 1.1. - 30.9. Change
Financial year 2013 2012 in %
Revenue in EUR million 599.1 573.0 4.6
EBITDA in EUR million 135.1 128.3 5.3
EBIT in EUR million 56.5 52.4 7.6
EBT in EUR million 19.1 13.3 43.8
Group profit in EUR million 11.9 8.4 42.6
Depreciation and amortization in EUR million 78.6 75.9 3.6
Capital expenditure in EUR million 123.3 144.9 -14.9
Operating cash flow in EUR million 116.6 102.8 13.5
Earnings per share in EUR 0.50 0.33 51.5
Railcar Division
Revenue in EUR million 253.1 233.9 8.2
EBITDA in EUR million 134.3 122.8 9.4
EBITDA margin in % 53.1 52.5
Rail Logistics Division
Revenue in EUR million 227.8 221.4 2.9
EBITDA in EUR million 3.4 6.6 -49.0
EBITDA margin in % 20.2 33.4
Tank Container Logistics Division
Revenue in EUR million 118.2 117.7 0.4
EBITDA in EUR million 7.8 8.8 -11.1
EBITDA margin in % 41.4 46.6
Change
30.09.2013 30.09.2012 in %
Number of employees 1,189 1,193 -0.3
- in Germany 844 837 0.8
- abroad 345 356 -3.1
Change
30.09.2013 31.12.2012 in %
Balance sheet total in EUR million 1,562.3 1,527.9 2.3
Non-current assets in EUR million 1,325.2 1,309.4 1.2
Current assets in EUR million 237.2 218.5 8.5
Shareholders equity in EUR million 316.5 311.7 1.5
Liabilities in EUR million 1,245.9 1,216.2 2.4
Equity ratio in % 20.3 20.4

About VTG:

VTG Aktiengesellschaft is one of Europe's leading wagon hire and rail logistics companies. The company has the largest private railcar fleet in Europe. Globally, the fleet consists of some 52,700 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 Investor Relations contact:

Monika Gabler Christoph Marx

Head of Corporate Communications Head of Investor Relations

Telephone: +49 (0) 40 23 54-1341 Telephone: +49 (0) 40 23 54-1351

Fax: +49 (0) 40 23 54-1340 Fax: +49 (0) 40 23 54-1350

Email: monika.gabler@vtg.com Email: christoph.marx@vtg.com

Further information at www.vtg.com



End of Corporate News


14.11.2013 Dissemination of a Corporate News, transmitted by DGAP - a company of EQS Group AG.
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