VTG logistics units remain under pressure

VTG achieved disproportionate earnings growth in its Railcar Division in the first half of 2014; group revenue equal to previous year

VTG Aktiengesellschaft (Hamburg), one of the leading wagon hire and rail logistics companies in Europe, continued to steadily develop its business in the first half of 2014 despite global economic and political challenges. Group revenue was on a par with the previous year and reached EUR 404.7 million (previous year: EUR 404.4 million). EBITDA increased by 0.6 per cent to EUR 90.2 million (previous year: EUR 89.6 million).

“Consistently good capacity utilization levels and numerous new build wagons have enabled the Railcar Division to make a disproportionately high contribution to the group’s results. This provides fresh evidence of the effectiveness of our stable business model,” says Dr. Heiko Fischer, CEO of VTG Aktiengesellschaft. “We have managed to sustain positive business development, despite the impact of the troubled situation in the Ukraine on the Rail Logistics Division,” he added.

After a difficult start to the year, the logistics units have only managed to recover to a certain extent. The Rail Logistics Division recorded a 0.6 per cent increase in revenues to EUR 157.2 million (previous year: EUR 156.3 million). EBITDA dropped back to EUR 0.1 million (previous year: EUR 2.7 million). In addition to the continuing tensions between Russia and the Ukraine, stronger competition in the liquid goods segment and the mild European winter prompted a considerable decrease in the consumption and transport of heating and other fuels which has had an impact on results.

Revenue in the Tank Container Logistics Division stagnated as a result of pricing pressures and global overcapacities. It amounted to EUR 74.2 million and was therefore 6.0 per cent below the previous year’s value (EUR 79 million). Nevertheless, revenues remained stable in comparison to the first quarter of 2014. By contrast, the EBITDA was exactly in line with the previous year, at EUR 5.5 million. At 44.9 per cent, the EBITDA margin related to gross profit rose slightly above the previous year (43.8 percent).

Revenues in the Railcar Division rose by 2.5 per cent to EUR 173.2 million (previous year: EUR 169 million), and the EBITDA by 2.9 per cent from EUR 88.3 million to EUR 90.8 million. Around 800 new build wagons and investments of more than EUR 100 million enabled further expansion to the wagon fleet in the first half of the year. 600 of these wagons are being used in Europe, primarily by customers from the steel and agricultural industries. An additional 200 new wagons were hired out in Russia, which is a strategically important market in the long term. Fleet utilization capacity could also be increased to 90.2 per cent in comparison to both the start of the year (Q1/2014: 90.1 per cent) and the previous year (Q2/2013: 89.7 per cent).

Quelle: LogEastics
Portal: www.logistik-express.com