Financial News

16/November/2017

DGAP-News: VTG AG boosts revenue in first nine months of 2017 - Railcar capacity utilization at highest level since the end of 2008


DGAP-News: VTG Aktiengesellschaft / Key word(s): Quarterly / Interim Statement

16.11.2017 / 07:30
The issuer is solely responsible for the content of this announcement.


VTG AG boosts revenue in first nine months of 2017 -
Railcar capacity utilization at highest level since the end of 2008

- Further increase in revenue

- Railcar capacity utilization at highest level since the end of 2008

- Revenue and EBITDA up again at Rail Logistics

- One-time charges prompt slight decline in Group EBITDA and Group net profit


Hamburg, November 16, 2017. VTG Aktiengesellschaft (WKN: VTG999), one of the leading railcar leasing and rail logistics companies in Europe, increased its revenue in the first nine months of 2017. Group revenue improved to EUR 750.2 million, slightly up on the same period a year ago (9M 2016: EUR 742.0 million). Despite this increase, EBITDA of EUR 250.7 million fell just short of the previous year's figure (9M 2016: EUR 255.9 million). This drop is attributable essentially to one-time charges for the preparation of unleased wagons and the planned takeover of the Nacco Group. Accordingly, Group net profit of EUR 44.1 million was slightly down on the figure for the same period of the previous year (9M 2016: EUR 45.0 million). Earnings per share (EPS) followed suit, slipping from EUR 1.24 in the comparable period of 2016 to EUR 1.21 in the period under review.

"The numbers for the first nine months show that we are consistently maintaining the positive revenue trend witnessed in recent months. Development at the logistics divisions is satisfactory, and capacity utilization at Railcar has reached the highest level since 2008," explains Dr. Heiko Fischer, Chairman of the Executive Board of VTG AG. "Regrettably, one-time charges for the preparation of unleased wagons and the planned acquisition of Nacco slightly put the brake on our EBITDA. At the same time, continuing growth in demand for our products and services is an indicator for the development of our business."

Railcar: Revenue up in third quarter - Fleet capacity utilization at highest level since 2008
Revenue at the Railcar Division rose 2.7 percent in the third quarter of 2017, up from EUR 128.5 million in the second quarter to EUR 131.9 million. Revenue thus totaled EUR 386.0 million in the first nine months of 2017 (9M 2016: EUR 387.7 million), corresponding to a minor year-on-year decline of 0.4 percent. The sustained positive trend in revenue [in the past two quarters] thus virtually made up for the rather lackluster start to the year. At EUR 249.1 million, EBITDA for the division was 2.5 percent down on the same period a year ago (EUR 255.5 million). One-time charges totaling EUR 4.2 million for the planned takeover of the Nacco Group and the preparation of newly leased wagons were the main reason for this dip. On the other hand, one-time income of EUR 3.2 million had positively influenced EBITDA in the third quarter of 2016. The EBITDA margin for this division, which is based on revenue, thus edged down 1.4 percentage points to 64.5 percent (9M 2016: 65.9 percent). Capacity utilization for the entire fleet increased to 92.1 percent (9M 2016: 89.8 percent), the highest level since September 2008.

Investments of EUR 211.8 million in the first nine months of 2017 were substantially higher than the figure of EUR 154.8 million for the same period a year ago. Most of this money was channeled into the purchase of new and used wagons and, hence, into tangible assets - above all to expand the fleets in North America, Russia and Europe.

Increase in EBITDA at logistics divisions
The Rail Logistics Division saw revenue increase by 5.7 percent to EUR 247.2 million in the first nine months of 2017 (9M 2016: EUR 233.7 million), again continuing the positive trend experienced in recent months. Sustained positive business development in southeastern Europe is the main reason for this gain. Transports for the metalworking industry and in Project Logistics likewise plotted a positive trajectory.

On the back of this revenue trend, the division's EBITDA improved by 10.4 percent to EUR 5.1 million in the first nine months of 2017, up from EUR 4.7 million a year ago. The EBITDA margin for Rail Logistics, which is based on gross profit, edged up by 0.8 percentage points from 22.0 percent in the same period a year ago to 22.8 percent in the first nine months of 2017.

Tank Container Logistics posted revenue of EUR 117.0 million in the first nine months of 2017, a year-on-year decline of 3.0 percent (9M 2016: EUR 120.6 million). The transportation volume was higher but freight rates were lower in the period under review. The temporary closure of the key railway line near Rastatt, southwestern Germany, also had a negative impact on revenue development in the third quarter. Despite this slight decline in revenue, the division's EBITDA improved in the first nine months of the current financial year, climbing 8.4 percent from EUR 7.7 million in the same period of 2016 to EUR 8.3 million in the period under review. The EBITDA margin, which is based on gross profit, was up by 1.0 percentage point to 37.0 percent, slightly higher than at the same point in the previous year (36.0 percent).

VTG Executive Board concretizes August forecast for 2017
For the current financial year, there is no change in the expectation that Group revenue will be slightly higher than in the previous year (2016: EUR 986.9 million).
In the forecast published in August, the Executive Board expected Group EBITDA for the current financial year to be in a corridor between EUR 330 million and EUR 360 million. The top end of the forecast EBITDA spread includes potential proceeds from the acquisition of the Nacco Group in the 2017 financial year. However, since the antitrust authorities are still continuing their examination, the Executive Board now expects that the closing will not take place until the first quarter of 2018. Accordingly, expenses associated with the acquisition of the Nacco Group will be recognized in the result for the 2017 financial year, but no income from the Nacco Group will be realized this year. The Executive Board therefore believes that EBITDA for the year will in fact be at the bottom end of the spread forecast in August.

Key figures for the VTG Group

       
  1.1.- 30.9. 1.1. - 30.9. Changes
Financial Year 2017 2016 in %
Revenue in EUR million 750.2 742.0 1.1
EBITDA in EUR million 250.7 255.9 -2.0
EBIT in EUR million 109.7 115.9 -5.3
EBT in EUR million 63.0 69.2 -8.9
Group profit in EUR million 44.1 45.0 -1.9
Depreciation and amortization in EUR million 141.0 140.0 0.7
Capital expenditure in EUR million 211.8 154.8 36.8
Operating cash flow in EUR million 170.5 226.1 -24.6
Earnings per share in EUR 1.21 1.24 -2.4
Railcar division      
Revenue in EUR million 386.0 387.7 -0.4
EBITDA in EUR million 249.1 255.5 -2.5
EBITDA margin in % 64.5 65.9  
Rail Logistics division      
Revenue in EUR million 247.2 233.7 5.7
EBITDA in EUR million 5.1 4.7 10.4
EBITDA margin in % 22.8 22.0  
Tank Container Logistics division      
Revenue in EUR million 117.0 120.6 -3.0
EBITDA in EUR million 8.3 7.7 8.4
EBITDA margin in % 37.0 36.0  
      Changes
  30.09.2017 30.09.2016 in %
Number of employees 1,497 1,434 4.4
- in Germany 1,017 952 6.8
- abroad 480 482 -0.4
      Changes
  30.09.2017 31.12.2016 in %
Balance sheet total in EUR million 3,058.4 3,001.5 1.9
Non-current assets in EUR million 2,731.3 2,726.2 0.2
Current assets in EUR million 327.1 275.3 18.8
Shareholders equity in EUR million 778.4 774.0 0.6
Liabilities in EUR million 2,280.0 2,227.5 2.4
Equity ratio in % 25.5 25.8  
 



About VTG:

VTG Aktiengesellschaft is one of Europe's leading railcar leasing and rail logistics companies, with a fleet of more than 80,000 railcars. VTG is a full-service provider, supplying tank cars, standard freight cars, intermodal cars and sliding-wall railcars. Beyond its leasing activities, the Group delivers a comprehensive portfolio of multimodal logistics service focused primarily on rail freight and global tank container transportation.

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 2016, VTG generated revenue of EUR 987 million and operating profit (EBITDA) of EUR 345 million. Via its subsidiaries and affiliates the company, which has its head office in Hamburg, is mainly present in Europe, North America, Russia and Asia. As at 31 December 2016, VTG had 1,443 employees worldwide in consolidated companies. VTG AG is listed on the official Prime Standard market of the Frankfurt Stock Exchange and also on the SDAX (WKN: VTG999).

 

Press contact:
Gunilla Pendt
Head of Corporate Communications
Telephone: +49 (0) 40 23 54-1341
Fax: +49 (0) 40 23 54-1340
E-mail: gunilla.pendt@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
E-mail: christoph.marx@vtg.com

More information at www.vtg.com



16.11.2017 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.

The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
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