Financial News

16/November/2009

DGAP-News: VTG announces solid quarterly results and recognizes economic upturn


VTG Aktiengesellschaft / Quarter Results16.11.2009
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Press Release 

VTG announces solid quarterly results and recognizes economic upturn
- Revenue and EBITDA slightly below previous year
- Moderate decline in Wagon Hire already slowing down
  - Rail Logistics continues good performance

- Tank Container Logistics benefiting from recovering transport business
- Revenue and EBITDA forecasts for 2009 reconfirmed
Hamburg, 16 November 2009. VTG Aktiengesellschaft (WKN: VTG999), one of the leading wagon hire and rail logistics companies in Europe, announces good results for the first nine months of the current financial year despite the difficult market environment. The company is taking advantage of growth opportunities in the individual divisions and benefits from the first signs of the economic upturn. Revenue and operating profit (EBITDA) were only slightly below the levels of the previous year: Group revenue dropped by 4.4 per cent to EUR 430.5 million, while EBITDA fell against the adjusted figure for the previous year by 2.9 per cent, to EUR 112.4 million. At EUR 104.1 million, cash flow from operating activities was 8.6 per cent below the figure for the same period of the previous year. Overall, the Hamburg-based Group is still on its expected development path and expects for the financial year 2009 revenue and EBITDA to drop only around five percent compared to the previous year.

VTG's solid performance in past months shows that the company is in a robust position with its long-term business model, even in a difficult market environment. The demand for wagons remains at a good level. In the logistics divisions, opportunities for growth are being used and the rising demand for transports in certain areas can be served promptly. 'In the last twelve months, we were able to prove that we can keep sales volume and profitability almost at the level of the record year 2008, even in the most difficult economic crisis', says Dr. Heiko Fischer, CEO of VTG Aktiengesellschaft. 'With our precise strategy for business development combined with our strict cost controls, we are therefore well positioned for the upturn in the economy.'

Positive signs in Wagon Hire Division

VTG has the largest private wagon fleet in Europe, serving almost every branch of industry and country in Europe. With this fleet, the company offers its customers an incomparable, flexible network of wagon provision. VTG's customers require VTG wagons to secure their production processes and, for this reason, they deploy them over the long term. The demand for the company's wagons - which number some 50,000 - is still at a high level of 88.1 per cent capacity utilization despite the weak economic phase. Compared with 30 June of this year, the level has dropped only slightly, by 0.8 percentage points. Thus the slight decline since the peak level of 93.9 per cent as 30 September 2008 has slowed. Indeed, for some wagon types demand is rising again.

Revenue for the first nine months of 2009 fell slightly, by 2.9 per cent, from EUR 216.6 million to EUR 210.2 million. There was also a moderate drop of 2.4 per cent in EBITDA, from EUR 112.7 million to EUR 110.0 million. The EBITDA margin related to revenue rose very slightly, to 52.3 per cent.
Rail Logistics Division continues to grow 

With its Europe-wide network of haulage partners, the Rail Logistics Division focuses on cross-border transports and benefited in particular from the continued rise in demand in eastern and south-eastern Europe. Additionally, the division has strengthened its service provision with a new office in Rotterdam to provide customers with more intensive support in the Benelux countries. In addition a Europe-wide 24-hour service for block train customers has been implemented.

In the first nine months of 2009, revenue in Rail Logistics increased on the previous year by 3.7 per cent, to EUR 135.9 million. EBITDA amounted to EUR 5.3 million, an increase on the adjusted figure for the previous year of 4.6 per cent. As a result of intensified competition, the adjusted EBITDA margin on gross profit narrowed slightly, from 47.8 per cent in 2008 to 44.4 per cent.

Tank Container Logistics Division reports increased volume of orders
Through its Tank Container Logistics Division, VTG offers global multi-modal transport and logistics services using tank containers that can be transported by rail, road or sea. Due to its focus on the chemical industry, the division is significantly affected by the global economic crisis, but can now take advantage of the very slow upturn in the chemical industry. While in the second quarter orders stabilized at a low level, in the third quarter the order volume was pushed up again slightly. The pressure on prices, however, remains unchanged.

As a result of the economic crisis, revenue dropped significantly in the first nine months of 2009, by 17.9 per cent, from EUR 102.8 million to EUR 84.4 million. EBITDA fell by 31.3 per cent, to EUR 5.0 million. Due to strict cost management measures, the effect on the EBITDA margin on gross profit was limited, shrinking only from 46.0 per cent to 38.8 per cent.
Outlook: stable development of business and seizing opportunities for growth

Despite the slow improvement in the global economy and the positive signs of growth in all divisions, VTG does not expect a rapid economic recovery. The market environment will thus remain just as difficult for the remainder of 2009. The slow economic upturn will continue to have a positive impact on all divisions. The overall level of demand in Tank Container Logistics will, however, remain low. Nevertheless, VTG will continue in the coming years to take advantage of opportunities for growth by making very carefully thought-out investments in the wagon fleet and service provision. The financing in place for this is secure and long-term, with contracts running until 2015. Moreover, the Group has a strong cash flow form operating activities, a good equity ratio and a solid balance sheet structure. VTG also continues to expect to achieve positive results and to be able to pay a dividend for 2009. Overall, for the year 2009, the Group expects a drop of around five per cent in both revenue and EBITDA.
 Key figures for VTG Group

01.01.-30.09. 01.01.-30.09. Change 2009 2008 in % Revenue in EUR million 430.5 450.4 -4.4 EBITDA in EUR million 112.4 116.9 -3.9 EBITDA in EUR million
(adjusted for one-off effect) 112.4 115.6 -2.9 EBIT in EUR million 51.5 58.0 -11.1 EBT in EUR million 28.0 34.0 -17.6 Group profit in EUR million 17.8 22.0 -19.3 Depreciation and amortization
in EUR million 60.8 59.0 3.1 Capital expenditure in EUR million 92.6 108.6 -14.7 Operating Cashflow in EUR million 104.1 113.8 -8.6 Earnings per share in EUR 0.80 0.99 -19.2 Wagon Hire Division
Revenue in EUR million 210.2 216.6 -2.9 EBITDA in EUR million 110.0 112.7 -2.4 EBITDA margin in % 52.3 52.0 Rail Logistics Division
Revenue in EUR million 135.9 131.0 3.7 EBITDA in EUR million * 5.3 5.0 4.6 EBITDA margin in % * 44.4 47.8 Tank Container Logistics Division
Revenue in EUR million 84.4 102.8 -17.9 EBITDA in EUR million 5.0 7.2 -31.3 EBITDA margin in % 38.8 46.0* Including one-off effect from the sale of a shareholding in 2008: EBITDA = EUR 6.3 million, EBITDA margin = 59.7%

30.09. 30.09. Change 2009 2008 in % Number of employees 1,007 850 18.5 In Germany 679 522 30.1 Abroad 328 328 0.0
30.09. 31.12. Change 2009 2008 in % Balance sheet total in EUR million 1,292.6 1,240.5 4.2 Non current assets in EUR million 1,085.0 1,081.2 0.4 Current assets EUR million 207.6 159.3 30.3 Shareholders' equity in EUR million 290.8 288.4 0.8 Total liabilities in EUR million 1,001.9 952.1 5.2 Equity ratio in % 22.5 23.3



 About VTG:

VTG Aktiengesellschaft is one of Europe's leading wagon hire and rail logistics companies. The company has the largest private wagon fleet in Europe. Globally, the fleet consists of some 50,000 wagons, 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 global tank container transports and comprehensive multi-modal logistics services, mainly around rail transport.

With the combination of its three interlinked divisions Wagon Hire, 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 and paper industries.
In the financial year 2008, VTG generated revenue of EUR 608.7 million and operating profit (EBITDA) of EUR 156.4 million. Via its subsidiaries and affiliates the company, which has its head office in Hamburg, is mainly present in Europe, Asia and North America. As at 31 December 2008, VTG had 1,004 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, since September 2008, also on the SDAX (WKN: VTG999).
Media contact:

Tanja Laube

Head of Corporate Communications

Telephone: +49 (0) 40 23 54-13 41

Fax: +49 (0) 40 23 54-13 40

Email: tanja.laube@vtg.com

Felix Zander

Head of Investor Relations

Telephone: +49 (0) 40 23 54-13 51

Fax: + 49 (0) 40 23 54-13 50

Email: felix.zander@vtg.com

Further information at www.vtg.com


16.11.2009 Financial News distributed by DGAP. Media archive at www.dgap-medientreff.de and www.dgap.de

 
Language:     English
Company:      VTG Aktiengesellschaft
              Nagelsweg 34
              20097 Hamburg
              Deutschland
Phone:        040 2354 0
Fax:          040 2354 1199
E-mail:       info@vtg.de
Internet:     www.vtg.de
ISIN:         DE000VTG9999
WKN:          VTG999
Indices:      SDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hannover, München, Hamburg, Stuttgart  
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