VTG reports increase in revenue and profit

VTG reported a positive development in revenue and profit at the end of the third quarter of 2012. There were differences within this trend in each of the three operational divisions. Revenue rose on the previous year by 2.6 percent, from €558.3 million to €573 million. Operating profit (EBITDA), at €128.3 million, was 1.8 percent higher than the figure for the same period of the previous year.

“Despite an environment of uncertainty and caution, we are on the right path towards achieving our objective for 2012,” said Dr. Heiko Fischer, CEO of VTG Aktiengesellschaft. “Our acquisitions made in 2011 are making a clear impact on revenue. Thus the strategy of growth we have drawn up is successfully showing results.” In 2011, VTG doubled its fleet of wagons in the US and commenced wagon hire operations in the Russian market through the purchase of the Finnish Railcraft group of companies.

Revenue in the Railcar Division increased in the first nine months by 4.4 percent to €233.9 million (previous year: €224.0 million). EBITDA amounted to €122.8 million and was therefore up €5 million, or 4.3 percent, on the previous year.

The Rail Logistics Division saw business develop successfully in the petrochemicals and industrial goods segments of the market. However, this positive trend was overshadowed by the negative factor of lower transport volumes in the agricultural sector. This meant that only part of the operating costs, some of which are fixed, could be reduced. Additionally, the pre-operating costs incurred by the strategic repositioning of the division impacted the result for the first nine months of 2012. Moreover, business in the first half of 2012 was negatively affected by the customer insolvency mentioned earlier.

In Tank Container Logistics, revenue was €117.7 million since the beginning of the year and was thus 1.6 percent higher than the figure for the same period of 2011 €115.8 million). EBITDA amounted to €8.8 million, thereby falling by €0.5 million, or 5.9 percent, compared with the previous year €9.3 million). Accordingly, the EBITDA margin on gross profit declined to 46.6 percent (previous year: 48.5 percent).

The Executive Board of VTG re-affirms the more detailed forecast issued in August and expects to achieve a level of revenue in the lower half of the forecast range (€760–800 million) and EBITDA also at the lower end (€170–178 million).