Financial News

25/August/2010

DGAP-News: VTG Aktiengesellschaft: VTG reports solid half-year results and increases full-year forecast



VTG Aktiengesellschaft / Half Year Results/Quarter Results
25.08.2010 08:30

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Press Release

VTG reports solid half-year results and increases full-year forecast
- Group revenue increased by 6.9 percent to EUR 307.1 million
- EBITDA of EUR 75.1 million at level of previous year
- Increasing wagon fleet capacity utilization

- Logistics divisions continue on path of growth

- Forecast for financial year 2010 raised 

Hamburg, August 25, 2010. The positive trend in the Hamburg based wagon hire and rail logistics company VTG Aktiengesellschaft (WKN: VTG999) continued in all three divisions for the first six months of 2010. Revenue rose by 6.9 percent, from EUR 287.3 million in 2009, to EUR 307.1 million in the first half year of 2010. Operating profit (EBITDA) - at EUR 75.1 million - stayed strong at around the level of the previous year (EUR 75.4 million). Cash flow from operating activities decreased by 16.3 percent to EUR 64.8 million. This was due to the increase in revenue in the logistics divisions and the higher trade receivables associated with this. Due to the good business development the Group is raising its forecast and expects an increase in revenue and EBITDA in the financial year 2010 compared with 2009.

Dr. Heiko Fischer, CEO of VTG Aktiengesellschaft, comments on the good half-year results: 'In our largest division, Wagon Hire, demand for wagons is increasing again. Our customers are hiring additional wagons from us and ask increasingly for even more transport capacities. This is the clearest sign that our customers have largely overcome the recession and that, not only in the logistics divisions but also in Wagon Hire, we are back on track for growth.'

Wagon Hire - capacity utilization increases

In the first six months of 2010, the Wagon Hire Division has continued recovering. After the slowdown in the decline in capacity utilization in 2009 and into 2010, VTG was able to hire out more wagons again. The level of capacity utilization has increased from the previous quarter's level of 87.0 percent to 87.4 percent that is just 1.5 percentage points below the previous year. This is the first increase of the utilization rate in six quarters. Revenue in this division, at EUR 142.6 million, was 1.1 percent higher than that of the first six months of 2009 (EUR 141.0 million). This is largely due to a major contract awarded in 2009 to the Waggonbau Graaff wagon construction plant. Due to the slightly lower level of capacity utilization compared with 2009, EBITDA was at EUR 72.1 million, 3.0 percent below the figure for the previous year (EUR 74.3 million). The EBITDA margin related to revenue narrowed slightly, from 52.7 percent in the previous year to 50.6 percent in the first six months of 2010.
Rail Logistics continues on its successful course
Rail Logistics benefited from new customers, optimizing traffic flows for customers, and concentrating on international transports. Moreover, the division expanded its services to include new types of goods for transport, such as vehicles, vehicle parts, metal powders, and industrial sugar. This is reflected in the division's 5.3 percent increase in revenue, from EUR 91.2 million in the first six months of 2009 to EUR 96.1 million in the same period of 2010. EBITDA showed an increase of 19.1 percent, rising from EUR 3.3 million in the previous year to EUR 3.9 million. There was a sharp increase in the EBITDA margin on gross profit, from 41.9 percent to 50.5 percent.

Tank Container Logistics continues to grow

Tank Container Logistics is continuing to benefit from the rising demand for transports with tank containers in all regions served by the division and across all product groups. The division has also successfully expanded its tank container fleet from 7,600 containers at the end of the first six months of 2009 to 8,900. Beyond this, the division further strengthened its business relationships in Turkey and Russia. With its flexible logistics concepts and even closer collaboration with local agents, Russian export customers can now also be served in a systematic way, while transport business with Turkey has been stepped up significantly.
In line with these developments, revenue for the division increased by 24.3 percent, from EUR 55.1 million to EUR 68.5 million. The EBITDA of EUR 4.6 million was 44.9 percent higher than that of the previous year (EUR 3.2 million). The EBITDA margin on gross profit increased from 38.9 percent in the previous year to 42.5 percent in the first half of 2010.
Outlook for 2010 - forecast raised 

The good results achieved in the first half of 2010 show that VTG remains on course to smooth out the small decline in 2009. Moreover, the Group is strengthening itself through other measures, including taking over some 720 used rail freight cars of the Rexwal Group, as was announced back in April. Another such measure, announced in July, is VTG's entry into the European rail transport market for grain, subject to approval by the antitrust authorities. Based on the expectation that the positive trend seen in the first six months will continue in the second half of 2010, the Executive Board of VTG is raising its forecast for growth in the financial year 2010. It is anticipated that revenue of between EUR 600 and 630 million will be generated in the current financial year, what would equal an amount 3 to 8 percent higher than in 2009. Furthermore, the Executive Board is expecting EBITDA of between EUR 150 and 155 million, representing moderate growth of around 0.5 - 3.5 percent.

 Key figures for the VTG Group
Financial year 1.1. - 30.6. 1.1. - 30.6. Change 2010 2009 in % Revenue in EUR million 307.1 287.3 6.9 EBITDA in EUR million 75.1 75.4 -0.5 EBIT in EUR million 31.0 35.3 -12.2 EBT in EUR million 16.1 19.7 -18.5 Group profit in EUR million 10.2 12.5 -18.7 Depreciation and amortization
in EUR million 44.1 40.1 9.9 Total capital expenditure
in EUR million 56.1 54.1 3.7 Cash flow from operating
activities in EUR million 64.8 77.4 -16.3 Earnings per share in EUR 0.45 0.56 -19.6 Wagon Hire
Revenue in EUR million 142.6 141.0 1.1 EBITDA in EUR million 72.1 74.3 -3.0 EBITDA margin in % 50.6 52.7 Rail Logistics
Revenue in EUR million 96.1 91.2 5.3 EBITDA in EUR million 3.9 3.3 19.1 EBITDA margin in % 50.5 41.9 Tank Container Logistics
Revenue in EUR million 68.5 55.1 24.3 EBITDA in EUR million 4.6 3.2 44.9 EBITDA margin in % 42.5 38.9 30.6. 30.6. Change 2010 2009 in % Number of employees 957 1,006 -4.9 - in Germany 684 672 1.8 - abroad 273 334 -18.3 30.6. 31.12. Change 2010 2009 in % Balance sheet total
in EUR million 1,309.8 1,277.2 2.6 Non-current assets
in EUR million 1,124.5 1,124.9 0.0 Current assets
in EUR million 185.2 152.3 21.7 Shareholders' equity
in EUR million 300.9 296.7 1.4 Total liabilities
in EUR million 1,008.9 980.4 2.9 Equity ratio in % 23.0 23.2
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 2009, VTG generated revenue of EUR 581.5 million and operating profit (EBITDA) of EUR 149.4 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 2009, VTG had 963 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:
Tanja Laube 
Head of Corporate Communications
Telephone: +49 (0) 40 23 54-1341
Fax: +49 (0) 40 23 54-1340
Email: tanja.laube@vtg.com

Investor Relations contact:
Felix Zander
Head of Investor Relations
Telephone: +49 (0) 40 23 54-1351
Fax: +49 (0) 40 23 54-1350
Email: felix.zander@vtg.com

Further information at www.vtg.com


25.08.2010 Ad hoc announcement, Financial News and Press Release 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 Hamburg, München, Düsseldorf, Berlin, Hannover, Stuttgart  
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