VTG reports sharp increase in profitability in 2016 – and remains on course for success with its VTG 4.0 agenda

Hamburg, 06. April 2017

VTG Aktiengesellschaft became significantly more profitable in the financial year 2016: Its Group net profit nearly doubled to EUR 57.5 million (previous year: EUR 29.4 million).

  • Group net profit almost doubled in 2016
  • Improved operating result (EBITDA) despite slight drop in revenue
  • Earnings before interest and taxes (EBIT) up again
  • Earnings per share (EPS) more than doubled
  • Revenue and profit expected to increase in 2017
  • Plans to raise dividend from EUR 0.50 to EUR 0.75 per share

 

VTG Aktiengesellschaft (WKN: VTG999), one of the leading wagon hire and rail logistics companies in Europe, became significantly more profitable in the financial year 2016: Its Group net profit nearly doubled to EUR 57.5 million (previous year: EUR 29.4 million). The company today presented its audited figures for 2016 in Hamburg. Although revenue declined by 4.0 percent to EUR 986.9 million (previous year: EUR 1,027.5 million), the operating result (EBITDA) rose by 2.6 percent to EUR 345.3 million (previous year: EUR 336.5 million). Earnings before interest and taxes (EBIT) increased by 3.8 percent to EUR 149.7 million (previous year: EUR 144.1 million). Earnings per share (EPS) jumped by 108 percent to EUR 1.56 (previous year: EUR 0.75). This positive development is the result of the successful VTG 4.0 agenda, aspects of which include refinancing in 2015 and the realization of synergies following the takeover of AAE. Since profitability has improved sustainably, the Executive Board proposes that the dividend this year be increased from EUR 0.50 to EUR 0.75 per share.

"2016 was an important year for the development of VTG. We increased our profitability significantly and sustainably, and we nearly doubled our group net profit. The VTG 4.0 agenda is bearing fruit, and we have now charted a clear course toward further growth and success. The realization of valuable synergies arising from the acquisition of AAE and our successful refinancing exercise in 2015 played a major part in this advancement," says Dr. Heiko Fischer, CEO of VTG AG. "We have set ourselves further goals for 2017 and expect to see a mild positive trend in revenue and profit. We are also continuing to work on our strategy of making rail more attractive and more competitive – for example by digitizing the entire European VTG fleet. We are thus convinced that we will reach both the goals of VTG 4.0 and our financial objectives, such as earnings per share of EUR 2.50 in the years ahead."

Railcar: EBITDA up – Revenue slightly down

The Railcar Division posted revenue of EUR 517.2 million in the financial year 2016 (previous year: EUR 537.2 million), a drop of 3.7 percent year on year. Roughly a quarter of the decline in revenue was due to better capacity utilization with internal production orders at the company's own factories and had no effect on earnings. On top of slack demand in some wagon segments, however, weaker trading activity in Europe, low diesel prices and the decrease in truck tolls in Germany in particular placed a burden on intermodal business. Across the global fleet, capacity utilization thus fell to 89.8 percent (previous year: 90.6 percent). On the other hand, synergies from the AAE acquisition, internal efficiency programs and one instance of one-time income were more than enough to offset the decline in revenue, with the result that EBITDA improved by 2.6 percent, from EUR 335.4 million in the previous year to EUR 344.3 million in the financial year 2016.

Rail Logistics: Positive earnings trend continues – Tank Container Logistics feeling the effects of more difficult market conditions

The Rail Logistics Division saw revenue decline by 3.6 percent to EUR 312.3 million in the financial year 2016 (previous year: EUR 324.0 million). Besides production outages at our customers and lower demand for transportation in the agricultural sector, a further factor in this slight decline was the discontinuation of low-margin business. Despite the fall in revenue, EBITDA for the division improved sharply, climbing 71.2 percent to EUR 5.8 million, up from EUR 3.4 million in the previous year. The main contributors to this development were a focus on higher-margin orders and the process optimization measures completed in 2015.

While global transportation volumes at Tank Container Logistics remained stable year on year in the financial year 2016, lower freight rates caused the division's revenue to decline by 5.3 percent to EUR 157.4 million (previous year: EUR 166.3 million). Primarily due to the elimination of one-time income totaling EUR 1.5 million from the sale of an associated company in the first quarter of 2015, EBITDA slipped from EUR 13.6 million to EUR 11.2 million in the period under review. Adjusted for the one-time effect, this equates to a decline of 7.2 percent.

Revenue and EBITDA expected to increase – Substantially higher dividend proposed

The Executive Board of VTG anticipates a mild positive trend in business development in 2017. In line with moderate growth prospects, especially for Europe, revenue at the VTG Group is expected to edge up. Despite the elimination of one-time income from the previous year, EBITDA too is expected to increase slightly.

The acquisition of AAE has nevertheless significantly increased the Group's profitability – a fact which the Executive Board believes should be reflected in a similarly significant increase in the dividend. The Board therefore intends to propose to the Annual General Meeting that the previous year's dividend of EUR 0.50 per share be increased this year to EUR 0.75 per share.

The Board has also set itself the goal of improving earnings per share to EUR 2.50 by 2018/2019.


Key figures for the VTG Group 

   

 

 

 

 

1.1.-31.12.

1.1. - 31.12.

Change

Financial Year

2016

2015

in %

Revenue in € million

986.9

1,027.5

-4.0

EBITDA in € million

345.3

336.5

2.6

EBIT in € million

149.7

144.1

3.8

EBT in € million

88.2

45.9

92.3

Group profit in € million

57.5

29.4

95.5

Depreciation and amortization in € million

195.6

192.4

1.7

Capital expenditure in € million

259.3

195.8

32.5

Operating cash flow in € million

326.2

282.9

15.3

Earnings per share in €

1.56

0.75

108.0

Railcar division

 

 

 

Revenue in € million

517.2

537.2

-3.7

EBITDA in € million

344.3

335.4

2.6

EBITDA margin in %

66.6

62.4

 

Rail Logistics division

 

 

 

Revenue in € million

312.3

324.0

-3.6

EBITDA in € million

5.8

3.4

71.2

EBITDA margin in %

20.9

12.2

 

Tank Container Logistics division

 

 

 

Revenue in € million

157.4

166.3

-5.3

EBITDA in € million

11.2

13.6

-17.5

EBITDA margin in %

39.4

47.4

 

 

 

 

Change

 

31.12.2016

31.12.2015

in %

Number of employees

1,443

1,445

-0.1

- in Germany

958

942

1.7

- abroad

485

503

-3.6

 

 

 

Change

 

31.12.2016

31.12.2015

in %

Balance sheet total in € million

3,001.5

3,047.1

-1.5

Non-current assets in € million

2,726.2

2,708.1

0.7

Current assets in € million

275.3

339.0

-18.8

Shareholders equity in € million

774.0

748.2

3.4

Liabilities in € million

2,227.5

2,298.9

-3.1

Equity ratio in %

25.8

24.6

 


About VTG:

VTG Aktiengesellschaft is one of Europe’s leading wagon hire and rail logistics companies, with a fleet consisting of more than 80,000 railcars. VTG offers a full-range service, providing tank cars, intermodal wagons, standard freight wagons and sliding wall wagons. 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 2016, VTG generated revenue of EUR 987 million and operating profit (EBITDA) of EUR 345 million. Via its subsidiaries and affiliates the company, which has its head office in Hamburg, is mainly present in Europe, North America, Russia and Asia. As at 31 December 2016, VTG had 1,443 employees worldwide in consolidated companies. VTG AG is listed on the official Prime Standard market of the Frankfurt Stock Exchange and also on the SDAX (WKN: VTG999).


Contact Corporate Communications


Gunilla Pendt
Head of Corporate Communications

gunilla.pendt@vtg.com

Tel: +49 (0) 40 23 54-1341
Fax: +49 (0) 40 23 54-1340

VTG Aktiengesellschaft
Nagelsweg 34
20097 Hamburg
Germany

Investor Contact


Christoph Marx
Leader Investor Relations

christoph.marx@vtg.com

Tel: +49 (0) 40 23 54-1351
Fax: +49 (0) 40 23 54-1350

VTG Aktiengesellschaft
Nagelsweg 34
20097 Hamburg
Germany