VTG Aktiengesellschaft / Quarter Results 17.11.2008 Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- VTG increases revenues and results significantly for the first nine months and re-affirms forecast for 2008 - Group revenue increased by 12.0 per cent - EBITDA up 18.9 per cent - Continued high demand for rail freight transport - North American wagon fleet expanded - Sales and EBITDA forecast for 2008 as a whole re-affirmed Hamburg, 17th November 2008. VTG Aktiengesellschaft (SCN: VTG999), one of Europes leading rail logistics and wagon hire companies, has successfully continued on its path of growth in the first nine months of 2008. Revenues and operating profit EBITDA improved significantly against the previous year, with group revenue rising by 12.0 per cent to EUR 450.7 million, and EBITDA increasing by 18.9 per cent to EUR 116.9 million. At EUR 113.8 million, cash flow from operating activities exceeded the amount for the same period in the previous year by a considerable 50.5 per cent. Due to the continuing positive development of operations, the Hamburg-based company re-affirmed its previous forecasts and continues to expect a rise in revenues of 8.0 to 10.0 per cent to an amount of EUR 585.0 to 595.0 million and an increase in EBITDA of 11.0 to 14.0 per cent, resulting in EUR 152.0 to 156.0 million. The positive development of business in the last nine months shows that, even in a difficult economic environment, VTG is in a solid position with its long-term business model. Demand for rail freight transports is high, as these offer clear cost advantages compared with road transports and allows for the efficient use of resources. 'With our wagons, we transport goods that meet industrys basic supply requirements', says Dr. Heiko Fischer, CEO of VTG Aktiengesellschaft. 'This service is not a trend that can simply be displaced, but keeps the wheels of industry turning.' Wagon hire strengthens its position in Europe and North America The wagon hire division made a key contribution to the positive figures for the group in the first three quarters of 2008. In the core market of Europe, VTG continues to report high demand for freight space. This is also reflected in the order of 1,700 new wagons, with more than 80 per cent of these already hired. In the North American rail freight market, in which VTG has been operational since January 2008, the companys wagon fleet was also expanded by 80 per cent to around 1,800 through targeted purchases. Overall, as at 30th September, the VTG fleet consisted of around 49,300 wagons. The utilization rate was 93.9 per cent, increased even more from the very high level of the previous year of 92.3 per cent. Revenues for the wagon hire division increased on the previous year by 13.6 per cent to EUR 216.9 million (previous year: EUR 190.9 million). EBITDA rose to a similar extent, by 13.8 per cent from EUR 99.1 million to EUR 112.7 million. The EBITDA margin related to revenue thus rose to 52.0 per cent (previous year: 51.9 per cent). Rail logistics takes advantage of high demand for international transports The rail logistics division specializes in cross-border rail transport and benefited from a continued increase in demand in this area. VTGs expertise and many years experience in selecting and combining different carriers as well as customized quality, safety and emergency management are key competitive advantages of the company. Similarly to the positive development of business, revenues for this division increased by 11.8 per cent to EUR 131.0 million. EBITDA rose by 78.0 per cent to EUR 6.3 million; this figure includes the result from the sale of the VTG share in the railway company RAIL4CHEM. Without the effect of the sale, EBITDA would have risen to EUR 5.1 million, representing an increase on the previous year of 42.7 per cent. The EBITDA margin on gross result as adjusted for this special effect increased from 40.6 to 47.8 per cent. Tank container logistics grows through transports to Eastern and South-Eastern Europe While business in the tank container logistics division in Europe was in line with general market growth, transports to Russia, the CIS and Turkey increased significantly. In China, VTG also has promising growth prospects in transports within the country via Shanghai Cosco VOTG Tanktainer, a joint venture with Cosco Logistics. Accordingly, revenues for this division increased by 8.9 per cent to EUR 102.8 million. EBITDA rose in the period by 18.1 per cent to EUR 7.2 million. The EBITDA margin on gross result increased from 42.6 per cent in the same period of 2007 to 46.0 per cent. Outlook: forecast for 2008 re-affirmed, dividend payment for 2008 intended VTG anticipates continued positive development in all divisions for the remainder of the financial year. On this basis, the company re-affirms its improved revenues and EBITDA forecasts from August to apply to the whole year. The expectation remains the same that in 2008 group revenue will rise by 8.0 to 10.0 per cent to an amount of EUR 585.0 to 595.0 million and EBITDA for the group by 11.0 to 14.0 per cent, resulting in EUR 152.0 to 156.0 million. The Company also intends to be able, for the first time since the IPO, to pay out a dividend in 2009 of EUR 0.30 per share for the financial year 2008. Dr. Kai Kleeberg, CFO of VTG Aktiengesellschaft: 'The high demand for rail freight space, long-term customer contracts and our long-term refinancing strategy give us the right balance between security and room to maneuver for further growth'. Figures for the VTG Group<pre> 01.01. 30.09. 01.01. 30.09. Change 2008 2007 in % Revenue in m 450.7 402.6 12.0 EBITDA in m 116.9 98.4 18.9 EBIT in m 58.0 49.8 16.5 EBT in m 34.0 22.2 53.3 Group profit in m 22.0 30.9 - 28.6 Group profit (comparable) in m* 22.0 12.2 80.9 Impairment, amortization and depreciation in m 59.0 48.6 21.4 Capital expenditure in m 108.6 89.8 20.9 Cash flow in m** 113.8 75.6 50.5 Earnings per share in 0.99 3.20 - 69.1 Earnings per share (comparable) in *, *** 0.99 0.57 73.7 30.09. 30.09. Change 2008 2007 in % Numbers of employees 850 808 5.2 in Germany 522 501 4.2 Abroad 328 307 6.8 30.09. 31.12. Change 2008 2007 in % Balance sheet total in m 1,236.1 1,165.9 6.0 Non current assets in m 1,051.9 990.6 6.2 Current assets in m 184.2 175.3 5.1 Shareholders equity in m 299.5 278.7 7.4 Total liabilities in m 936.6 887.2 5.6 Equity ratio in % 24.2 23.9 0.3 % points</pre> * In 2007 adjusted for special tax effects. ** Comparable figures have been adjusted. *** The Group profit attributable to the shareholders relating to the weighted number of shares in issue during the period under review (for greater ease of comparison, the number of shares in issue in 2008 was compared with the result of the previous year). Note for the press: The VTG report for the first nine months of 2008 can be downloaded at www.vtg.de About VTG: VTG Aktiengesellschaft is one of Europes leading rail logistics and wagon hire companies. The company has the largest private wagon fleet in Europe. Globally the fleet consists of about 49,300 rail freight cars with a focus on tank cars and state of the art high capacity freight cars and flat cars. In addition to the hiring of rail freight cars, the Group offers global tank container transport and comprehensive multi-modal logistics services mainly around rail transport. With the combination of its three interrelated divisions Wagon Hire, Rail Logistics and Tank Container Logistics VTG offers its clients a high-performance platform for international transport of their freight. The Group has many years of experience and specific know-how in particular in the transport of liquid and sensitive goods. Its customers include numerous well-known companies from almost all industrial sectors such as, for example, chemicals, mineral oil, the automobile or paper industries. In the financial year 2007 VTG generated operating revenues of EUR 541.4 million and an operating result (EBITDA) of EUR 137.0 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 30 June 2008 VTG employed 833 employees worldwide in consolidated companies. Since June 2007 VTG AG has been listed on the official Prime Standard market of the Frankfurt Stock Exchange since September 2008 also on the SDAX (SCN: 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 Further information at www.vtg.de DGAP 17.11.2008 --------------------------------------------------------------------------- Language: English Issuer: 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, Hannover, Düsseldorf, Hamburg, München, Stuttgart End of News DGAP News-Service ---------------------------------------------------------------------------
DGAP-News: VTG increases revenues and results significantly for the first nine months and re-affirms forecast for 2008
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