Financial News

21/August/2014

DGAP-News: VTG shows stable development



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

21.08.2014 / 07:30


Press release

VTG shows stable development

- Group revenue equal to previous year, EBITDA increased slightly

- Disproportionate earnings growth in Railcar Division

- Liquid natural gas (LNG) innovation project: prototypes under construction

- Mixed picture in logistics sectors

- Group forecast reaffirmed

Hamburg, August 21, 2014. VTG Aktiengesellschaft (WKN: VTG999), one of the leading wagon hire and rail logistics companies in Europe, continued to steadily develop its business in the first half of 2014 despite global economic and political challenges. The many new build wagons in the core Railcar Division, particularly contributed to this trend. Overall, Group revenue was on a par with the previous year and reached EUR 404.7 million (previous year: EUR 404.4 million). The EBITDA increased by 0.6 percent to EUR 90.2 million (previous year: EUR 89.6 million).

"Consistently good capacity utilization levels and numerous new build wagons have enabled the Railcar Division to make a disproportionately high contribution to Group results. This provides fresh evidence of the effectiveness of our stable business model," says Dr. Heiko Fischer, CEO of VTG Aktiengesellschaft. He adds, "We have managed to sustain positive business development, despite the impact of the troubled situation in the Ukraine on the Rail Logistics Division."

Wagon fleet investments are paying off
Revenues in the Railcar Division rose by 2.5 percent to EUR 173.2 million (previous year: EUR 169.0 million), and the EBITDA by 2.9 percent from EUR 88.3 million to EUR 90.8 million. At 52.4 percent, the EBITDA margin related to revenue was also slightly above the 52.3 percent value from the previous year.

Around 800 new build wagons and investments of more than EUR 100 million enabled further expansion to the wagon fleet in the first half of the year. 600 of these wagons are being used in Europe, primarily by customers from the steel and agricultural industries. An additional 200 new wagons were hired out in Russia, which is a strategically important market in the long term. Fleet utilization capacity could also be increased to 90.2 percent in comparison to both the start of the year (Q1/2014: 90.1 percent) and the previous year (Q2/2013: 89.7 percent).

Innovations in wagon construction
In May 2014, VTG began to implement an innovation project. The company has developed and is constructing two wagon prototypes which enable LNG to be transported for the first time in Europe by rail. The construction of the tanks is well underway at Chart Ferox, which specializes in constructing tanks for the transport of cryogenic products. The VTG subsidiary Waggonbau Graaff is subsequently responsible for preparing the assembly and approval for the two prototypes. Rail transportation is therefore being developed to have a dual benefit in relation to environmental sustainability. Natural gas is in itself an ecological energy source and rail is the corresponding environmentally friendly means of transport.

Logistics units remain under pressure
After a difficult start to the year, the logistics units have only managed to recover to a certain extent. The Rail Logistics Division recorded a 0.6 percent increase in revenues to EUR 157.2 million (previous year: EUR 156.3 million). The EBITDA dropped back to EUR 0.1 million (previous year: EUR 2.7 million) and the EBITDA margin related to gross profit stood at 0.7 percent (previous year: 23.7 percent). In addition to the continuing tensions between Russia and the Ukraine, stronger competition in the liquid goods segment and the mild European winter prompted a considerable decrease in the consumption and transport of heating and other fuels which has had an impact on results.

Revenue in the Tank Container Logistics Division stagnated as a result of pricing pressures and global overcapacities. It amounted to EUR 74.2 million and was therefore 6.0 percent below the previous year's value (EUR 79.0 million). Nevertheless, revenues remained stable in comparison to the first quarter of 2014. By contrast, the EBITDA was exactly in line with the previous year, at EUR 5.5 million. At 44.9 percent, the EBITDA margin related to gross profit rose slightly above the previous year (43.8 percent).

VTG reaffirms forecast
The VTG AG Executive Board reaffirms its 2014 financial year Group revenue forecast of EUR 800 - 900 million and expects to be at the lower end of the EBITDA forecast range of EUR 188 - 200 million.

Key figures for the VTG Group

Financial year 1.1.-30.6.
2014
1.1.-30.6.
2013
Change
in %
Revenue in EUR million 404.7 404.4 0.1
EBITDA in EUR million 90.2 89.6 0.6
EBIT in EUR million 38.0 37.1 2.4
EBT in EUR million 12.4 12.6 -1.4
Group profit in EUR million 7.8 7.9 -0.6
Depreciation and amortization in EUR million 52.2 52.5 -0.6
Capital expenditure in EUR million 106.6 85.8 24.3
Operating cash flow in EUR million 82.0 76.1 7.7
Earnings per share in EUR 0.40 0.33 21.2
Railcar Division
Revenue in EUR million 173.2 169.0 2.5
EBITDA in EUR million 90.8 88.3 2.9
EBITDA margin in % 52.4 52.3
Rail Logistics Division
Revenue in EUR million 157.2 156.3 0.6
EBITDA in EUR million 0.1 2.7 -96.2
EBITDA margin in % 0.7 23.7
Tank Container Logistics Division
Revenue in EUR million 74.2 79.0 -6.0
EBITDA in EUR million 5.5 5.5 -1.3
EBITDA margin in % 44.9 43.8
30.06.2014 30.06.2013 Change
in %
Number of employees 1,304 1,184 10.1
- in Germany 888 831 6.9
- abroad 416 353 17.8
30.06.2014 31.12.2013 Change
in %
Balance sheet total in EUR million 1,586.4 1,550.8 2.3
Non-current assets in EUR million 1,374.1 1,332.2 3.1
Current assets in EUR million 212.4 218.6 -2.8
Shareholders equity in EUR million 332.6 321.3 3.5
Liabilities in EUR million 1,253.9 1,229.5 2.0
Equity ratio in % 21.0 20.7

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 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).

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:
Christoph Marx
Head of Investor Relations
Telephone: +49 (0) 40 23 54-1351
Fax: +49 (0) 40 23 54-1350
Email: christoph.marx@vtg.com

Further information at www.vtg.com





21.08.2014 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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283242  21.08.2014

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