DGAP-News: VTG Aktiengesellschaft / Key word(s): Half Year Results
VTG Aktiengesellschaft: VTG reports slight increase in revenue and new
business
15.08.2012 / 07:30
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Press Release
VTG reports slight increase in revenue and new business
- Railcar Division reports high level of capacity utilization of 90.6
percent
- Logistics Divisions with new traffic on the railway and stable demand
for transport services in Tank Container Logistics
- Revenue up on previous year, EBITDA down slightly
- Interest charges from new financing structure affect Group profit
- Forecast for financial year re-affirmed, with greater specificity
Hamburg, August 15, 2012. The Hamburg-based wagon hire and rail logistics
company VTG Aktiengesellschaft (WKN: VTG999) increased its revenue slightly
in the first half of 2012. Revenue rose by 1.6 percent, from EUR 373.8
million to EUR 379.9 million. Operating profit (EBITDA) fell slightly, by
2.3 percent, to EUR 82.0 million, while operating cash flow rose 6.6
percent to EUR 64.9 million. Additionally, with two new major long-term
contracts, VTG is continuing to perform a substantial number of rail
transports of goods. The new contracts are with the international commodity
trading corporation Glencore and the German aluminium producer Novelis.
'In view of the unsettled environment and the clouding of the economy, we
are basically satisfied with the results for the first half year, although
we had set our bar a little higher', explains Dr. Heiko Fischer, CEO of VTG
Aktiengesellschaft. 'A whole range of individual items such as increased
costs for maintenance and human resources, higher levels of depreciation
from investment in wagons and interest charges from the new financial
structure affected the result. However, we also managed to generate new
business and thereby lay the foundation for future growth in addition to
demonstrating clearly the competitiveness of rail freight transport', says
Fischer.
Railcar Division: Capacity utilization stable, at high level
Through new hire contracts, the Railcar Division was able to push up
revenue in the first half of 2012 to EUR 155.5 million. This represents an
increase of EUR 8.4 million, or 5.7 percent, on the same period of the
previous year (EUR 147.1 million). EBITDA amounted to EUR 77.7 million,
thereby remaining at almost the same level as for the first six months of
2011 (EUR 77.9 million). This was due to increased costs because of the
integration of acquisitions in Russia and the U.S. and maintenance
regulations. The EBITDA margin related to revenue was 50.0 percent (H1
2011: 53.0 percent), an increase on the figure of the previous quarter
(49,6 percent). Capacity utilization, at 90.6 percent, remained at exactly
the same, high level of the previous quarter. The insolvency of a customer
from the mineral oil industry also had a generally negative effect on
capacity utilization and the EBITDA margin in the first half of the year.
The Railcar Division successfully secured a major international contract
with the global Glencore Group. The commodity trading company will be
deploying a total of 300 VTG tank wagons for the transport of liquids. The
first 50 wagons were handed over to Glencore a few weeks ago. They are
equipped with the technology required for transporting pure vegetable oil.
Glencore dispatches the oil from its new plant in FoktÅ in Hungary two to
three times a week to filling stations and warehouses throughout Europe.
Rail Logistics Division: Period of consolidation after restructuring
In the Rail Logistics Division, revenue decreased by 2.7 percent in the
first half of 2012, to a level of EUR 145.4 million (H1 2011: EUR 149.4
million). EBITDA, at EUR 4.6 million, was also below the level for the same
period of 2011 (EUR 6.5 million). The EBITDA margin on gross profit was
34.6 percent (H1 2011: 50.2 percent). With its focus on new product groups,
the division has been positioned to reach a wider market since the
beginning of the year. This incurred pre-operating costs, with, for
example, changes having to be made to internal structures. Mainly the fact
that some items that positively impacted the figures in 2011 no longer
applied, but also the pre-operating costs and lower volumes of transport
(particularly in the agricultural sector), all led to a fall in revenue.
The insolvency of a customer also had a negative impact on business.
VTG's Rail Logistics Division successfully took up new transport operations
for the aluminium producer Novelis. The VTG subsidiary Transpetrol is
taking charge of the entire logistics operation for the transport of
aluminium coils. These rolled aluminium sheets have multiple applications
ranging from use in the drinks sector to the automotive industry. In this
role, Transpetrol acts both as a forwarder and as a railway company
directly in charge of operating the trains for Novelis. Since July 1, 2012,
a block train weighing some 3,000 tonnes has been running daily, connecting
the various operational points of Novelis, the world's largest manufacturer
of aluminium rolled products and market leader in the recycling of beverage
cans. To provide this demanding train service, Transpetrol has hired two
high-performance freight locomotives for the logistics contract, which is
to run for a number of years. The plan is for operation on around 350 days
per year. This is also the first time locomotives have been in operation
for VTG in scheduled traffic.
Tank Container Logistics Division: Steadfast despite tough competitive
environment
Revenue in the Tank Container Logistics Division amounted to EUR 79.0
million, representing an increase of EUR 1.7 million, or 2.2 percent, on
the figure for the first half of 2011 (EUR 77.3 million). EBITDA fell to a
level of EUR 5.9 million compared with EUR 6.3 million for the first six
months of the previous year. The EBITDA margin on gross profit also
narrowed slightly, to 46.5 percent (H1 2011: 49.4 percent). The
uncertainties about future developments in the eurozone and the forecasts
of lower levels of growth in China had no significant effect on demand for
transport services in the first half of the year. Strict cost management in
the chemical industry, along with increasingly aggressive competition, led
to noticeably intensified pressure on the margins. Tank Container Logistics
managed to stand its ground well in Europe in this environment and also
generated additional volumes of transport in Asia.
Rise in employee numbers
As of June 30, 2012, the VTG Group had 1,203 employees, an increase of 121
compared with the same period of the previous year. Of this number, 818
were employed in Germany (H1 2011: 738), 368 thereof in Hamburg (H1 2011:
337). 385 were employed in the companies abroad (H1 2011: 344). The number
of employees rose in all business divisions.
Outlook for 2012
Against the background of the current economic environment, the Executive
Board of VTG AG principally confirms its forecast for the Group for the
financial year 2012 as issued in February 2012. It is expected that revenue
will reach between EUR 760 and 800 million and EBITDA between EUR 170 and
178 million. Based on the assumption that economic growth will be somewhat
restrained, the Executive Board however expects revenue to be in the lower
half of the stated range and EBITDA to be at the lower limit of the stated
range.
Key figures
|[![CDATA[|[pre|]]]|]
1.1. - 30.6. 1.1. - 30.6. Change in
Financial year 2012 2011 %
Revenue in EUR million 379.9 373.8 1.6
EBITDA in EUR million 82.0 83.9 -2.3
EBIT in EUR million 31.4 36.8 -14.6
EBT in EUR million
(H1/2011 without
refinancing expenses*) 6.2 19.3 -67.7
Group profit in EUR million
(H1/2011 without
refinancing expenses **) 3.9 12.1 -67.7
Depreciation in EUR million 50.6 47.1 7.4
Capital expenditure in EUR
million 80.1 79.6 0.6
Operating cash flow in EUR
million 64.9 60.9 6.6
Earnings per share in EUR
(H1/2011 without
refinancing expenses ***) 0.14 0.53 -73.6
Railcar Division
Revenue in EUR million 155.5 147.1 5.7
EBITDA in EUR million 77.7 77.9 -0.3
EBITDA margin in % 50.0 53.0
Rail Logistics Division
Revenue in EUR million 145.4 149.4 -2.7
EBITDA in EUR million 4.6 6.5 -28.6
EBITDA margin in % 34.6 50.2
Tank Container Logistics
Division
Revenue in EUR million 79.0 77.3 2.2
EBITDA in EUR million 5.9 6.3 -6,8
EBITDA margin in % 46.5 49.4
Change in
30.06.2012 30.06.2011 %
Number of employees 1,203 1,082 11.2
- in Germany 818 738 10.8
- abroad 385 344 11.9
Change in
30.06.2012 31.12.2011 %
Balance sheet total in EUR
million 1,458.5 1,461.9 -0.2
Non-current assets in EUR
million 1,253.0 1,225.3 2.3
Current assets in EUR
million 205.5 236.6 -13.2
Shareholders equity in EUR
million 310.0 317.5 -2.4
Liabilities in EUR million 1,148.5 1,144.4 0.4
Equity ratio in % 21.3 21.7
|[![CDATA[|[/pre|]]]|]
* EBT H1/2011 adjusted to take account of special effects of refinancing
(unadjusted figure: EUR 0.5 million).
** Group profit H1/2011 adjusted to take account of special effects of
refinancing (unadjusted figure: EUR 0.3 million).
*** Earnings per share H1/2011 adjusted to take account of special effects
of refinancing (unadjusted figure: EUR -0.03 million).
About VTG:
VTG Aktiengesellschaft is one of Europe's leading railcar leasing and rail
logistics companies. The company has the largest private railcar fleet in
Europe. Globally, the fleet consists of some 53,800 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 2011, VTG generated revenue of EUR 750.0 million and
operating profit (EBITDA) of EUR 168.7 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 2011,
VTG had 1,170 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:
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:
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
End of Corporate News
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Language: English
Company: VTG Aktiengesellschaft
Nagelsweg 34
20097 Hamburg
Germany
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, Hamburg, Hannover,
München, Stuttgart
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181650 15.08.2012
DGAP-News: VTG Aktiengesellschaft: VTG reports slight increase in revenue and new business
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