VTG AG revenue for 2017 over one billion euros – Dividend set to increase by 20 %

Hamburg, 26. March 2018

- Group revenue rose by 2.8 % to EUR 1,014.4 million

- EBITDA up 2.4 % year on year (excluding one-time effects)

- Earnings before interest and taxes (EBIT) grew by 3.6 %

- Earnings per share (EPS) increased by 23.7 %

- Further gains in revenue and earnings anticipated in 2018

- Nacco closing expected in second half of 2018

- Plans to increase dividend by 20 % to EUR 0.90 per share

VTG Aktiengesellschaft (WKN: VTG999), one of Europe's leading railcar leasing and rail logistics companies, brought the 2017 financial year to a successful conclusion. Group net profit increased by 18.5 percent to EUR 68.1 million (previous year: EUR 57.5 million). Today, the Hamburg concern presented its audited figures for 2017, according to which revenue increased by 2.8 percent to EUR 1,014.4 million (previous year: EUR 986.9 million). Due to a one-time charge, the operating result (EBITDA) of EUR 343.4 million was slightly down on the previous year's figure (previous year: EUR 345.3 million), which included positive one-time income of EUR 6 million. Adjusted for these two one-time effects, EBITDA was up 2.4 percent year on year in the 2017 financial year. Earnings before interest and taxes (EBIT) increased by 3.6 percent to EUR 155.1 million (previous year: EUR 149.7 million). Earnings per share (EPS) rose by 23.7 percent to EUR 1.93 (previous year: EUR 1.56) thanks partly to a non-recurring tax impact. All three VTG divisions contributed to the upward trend in the 2017 business year. In the wake of this sustained positive development, the Executive Board proposes that the dividend this year be increased from EUR 0.75 to EUR 0.90 per share.

“2017 was a significant and exciting year in VTG’s development. Following a somewhat restrained start to the year, our strategic measures and the positive economic climate have generated a highly satisfactory result overall. The investments to expand our business are now bearing fruit and are a solid basis for 2018,” explains Dr. Heiko Fischer, Chairman of the Executive Board of VTG Aktiengesellschaft. “This dynamic development reinforces our conviction that, as planned, we will indeed achieve our financial objectives in the years ahead – which includes increasing EPS to EUR 2.50.” 

Railcar: Revenue increase – EBITDA up year on year (excluding one-time effects)

Revenue at the Railcar Division was up 0.7 percent to EUR 520.7 million in the 2017 financial year (previous year: EUR 517.2 million). EBITDA rose steadily throughout the year, ending the period under review roughly unchanged from the previous year at EUR 343.6 million (previous year: EUR 344.3 million). It should nevertheless be noted that one-time income of EUR 6 million arising from a compensation payment was received in 2016. Adjusted to accommodate this effect, EBITDA was 1.6 percent higher. Capacity utilization of the global fleet rose to 92.2 percent (previous year: 89.9 percent) – the highest level since the end of 2008. 

Rail Logistics: Further substantial gains in revenue and earnings

Tank Container Logistics: Slight increase in EBITDA achieved

In the 2017 financial year, Rail Logistics saw its revenues grow by 7.7 percent to EUR 336.4 million (previous year: EUR 312.3 million). The drivers of this increase were Project Logistics activities and healthy agricultural transportation business. The division's EBITDA thus jumped sharply by 42.9 percent to EUR 8.3 million, up from EUR 5.8 million in the previous year. 

Revenue at Tank Container Logistics remained stable at EUR 157.3 million (previous year: EUR 157.4 million). While the transportation volume increased further, lower freight rates prompted a contrary effect in revenue development. At EUR 11.3 million, EBITDA was slightly higher than in the previous year (previous year: EUR 11.2 million). 

Further gains in revenue and EBITDA expected – Board to propose dividend increase 

The Executive Board of VTG anticipates positive development in revenue and EBITDA in 2018. Following on from the mild increase in revenue in the period under review, this positive trend should continue through the 2018 financial year. Group revenue should thus be slightly higher than in 2017. Group EBITDA is expected to be in the range from EUR 340 million to EUR 370 million in the 2018 financial year. Both of the above statements relate to business development excluding the effects of the planned Nacco Group takeover. This is because, at the present time, it is not possible to make any reliable estimates about either the timing of closure or the transaction's possible impact on earnings in the current financial year. On July 1, 2017, VTG announced its intention to purchase all shares in the Nacco Group from America's CIT Group. Germany's Federal Cartel Office approved the acquisition of the Nacco Group, subject to compliance with certain conditions, on March 21. The decision of the Austrian antitrust court is expected by the end of March.

At this year's Annual General Meeting, the Executive Board will propose that the dividend for the financial year just ended be increased by 20 percent to EUR 0.90 per share (2016: EUR 0.75 per share). 

 

 

 

 

 

1.1. - 31.12.

1.1. - 31.12.

 

Financial Year

2017

2016

Change in %

Revenue in € million

1,014.4

986.9

2.8

EBITDA in € million

343.4

345.3

-0.6

EBIT in € million

155.1

149.7

3.6

EBT in € million

90.2

88.2

2.3

Group profit in € million

68.1

57.5

18.5

Depreciation and amortization in € million

188.3

195.6

-3.8

Capital expenditure in € million

341.6

259.3

31.7

Operating cash flow in € million

295.9

326.2

-9.3

Earnings per share in €

1.93

1.56

23.7

Railcar division

 

 

 

Revenue in € million

520.7

517.2

0.7

EBITDA in € million

343.6

344.3

-0.2

EBITDA margin in %

66.0

66.6

 

Rail Logistics division

 

 

 

Revenue in € million

336.4

312.3

7.7

EBITDA in € million

8.3

5.8

42.9

EBITDA margin in %

26.1

20.9

 

Tank Container Logistics division

 

 

 

Revenue in € million

157.3

157.4

-0.1

EBITDA in € million

11.3

11.2

0.7

EBITDA margin in %

37.5

39.4

 

 

 

 

 

 

31.12.2017

31.12.2016

Change in %

Number of employees

1,527

1,443

5.8

- in Germany

1,048

958

9.4

- abroad

479

485

-1.2

 

 

 

 

 

31.12.2017

31.12.2016

Change in %

Balance sheet total in € million

3,085.5

3,001.5

2.8

Non-current assets in € million

2,746.4

2,726.2

0.7

Current assets in € million

339.1

275.3

23.2

Shareholders equity in € million

800.1

774.0

3.4

Liabilities in € million

2,285.4

2,227.5

2.6

Equity ratio in %

25.9

25.8

 


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