DGAP-News: VTG starts with growth in its core business
VTG Aktiengesellschaft / Key word(s): Quarter Results/Interim Report
VTG starts with growth in its core business
- Revenue and EBITDA on previous year level
- Positive start to the year for Railcar Division
- Upward trend in Tank Container Logistics
- Rail Logistics Division faces difficult conditions
- EBITDA outlook for 2014 remains unchanged, revenue expectations slightly adjusted
Hamburg, May 15, 2014. VTG Aktiengesellschaft (WKN: VTG999), one of Europe's leading wagon hire and logistics companies, showed a mixed picture in its business divisions in the first quarter of 2014. While revenue and operative profit (EBITDA) of the Railcar Division continue to contribute to the positive development of the company, Rail Logistics has however been troubled by the Crimean crisis and the mild winter. Group revenue remained almost constant at EUR 199.6 million compared with the first quarter of 2013 (previous year: EUR 202.1 million). Furthermore, at EUR 44.0 million the EBITDA was just slightly below the previous year's value of EUR 45.0 million.
"Our Railcar Division has started the year very successfully and is showing definite growth. We are also looking forward to an upward trend in the Tank Container Logistics Division," says Dr. Heiko Fischer, CEO of VTG Aktiengesellschaft. He adds, "Unfortunately, the political tensions in Russia and the Ukraine have hindered the current development of Rail Logistics. We are however confident that this situation will improve throughout the course of the year."
A positive start to the year for the Railcar Division
This positive development was essentially due to the delivery of many new build wagons for the steel and agricultural industries. In addition, the Russian fleet was further strengthened by the delivery of 100 cement wagons built in the Ukraine. As of March 31, 2014 the VTG fleet consists of 52,900 wagons which signifies a slight increase in comparison to the end of 2013 (52,700 wagons). The capacity utilization was 90.1 percent in the first quarter (Q1/2013: 89.9 percent) which represents another increase from the previous quarter (Q4/2013: 89.8 percent).
Rail Logistics faces a challenge
One reason for the decline of revenue was the very mild winter in Europe. The moderate temperatures resulted in a decreased demand for the transport of energy materials and fewer replacement transports for inland waterway transportation. Competition within the liquid goods product segment has also increased significantly. This has led to a noticeable decrease in achievable profit margins. Revenue in the industrial goods segment is above the previous year but Rail Logistics has not yet been able to achieve the turnover expected resulting from the takeover of the Kuehne and Nagel activities. On the other hand, expenses have been made for staff and office space. The political tensions between Russia and the Ukraine are making business development particularly difficult and transports there have been almost brought to a standstill. The agricultural goods segment has stabilized and is developing satisfactorily.
Tank Container Logistics development trend improves
Overall, the first quarter of 2014 has shown a brightened economic outlook after three quarters of falling revenue and earnings figures. In the first quarter of 2014, we have seen an increase in revenue and EBITDA compared to the previous quarter. Revenue increased by 9.0 percent compared to the previous quarter and the EBITDA has actually risen by more than two thirds.
VTG confirms EBITDA forecast and adjusts the revenue forecast for 2014
For the 2013 financial year, the VTG AG Executive Board intends to propose the payment of a dividend of EUR 0.42 per share to the Annual General Meeting on June 5, 2014. This represents a dividend increase of about 14 percent in comparison to last year.
Key Figures for the VTG Group
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 52,900 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 2013, VTG generated revenue of EUR 783.7 million and operating profit (EBITDA) of EUR 183.8 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 2013, VTG had 1,191 employees worldwide in consolidated companies. Since June 2007, VTG AG has been listed on the official Prime Standard market of the Frankfurt Stock Exchange (WKN: VTG999).
Investor Relations contact:
Further information at www.vtg.com
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