VTG AG’s Rail Logistics Division was below expectations in 2014

VTG AG (Hamburg) experienced positive business development in the 2014 financial year; Fleet utilization increased to 91 per cent

VTG Aktiengesellschaft, one of Europe’s leading wagon hire and rail logistics companies, successfully enhanced its business, continued its course of growth and implemented key strategic measures in 2014. The group presented its audited figures for 2014 at its financial statements press conference in Hamburg on 14 April. According to these results, group revenue increased by 4.4 per cent to EUR 818.3 million. Operating profit (EBITDA) also developed at a positive rate, rising by 4 per cent to EUR 191 million.

Revenue in the Railcar Division increased by 3.7 per cent in 2014, from EUR 332.9 million to EUR 345.4 million.  EBITDA rose by 7.3 per cent, from EUR 181.1 million to EUR 194.4 million and at 56.3 per cent, the EBITDA margin related to revenue also increased in comparison to the previous year (54.4 per cent).

The principal reason behind this positive development was the delivery of approximately 1,800 new-build wagons. For instance, 350 bulk freight wagons enhanced the fleet in Russia and additional new-build wagons were constructed for the steel, agricultural and oil industries. Fleet utilization increased to 91 per cent (2013: 89.8 percent).

At the beginning of 2014, the acquisition of Kuehne + Nagel’s rail logistics activities enabled the Rail Logistics Division to expand in terms of geographical location, personnel and customer groups. To that effect, revenue increased by 7.9 per cent, from EUR 298.4 million to EUR 322 million. Overall, the progression of the joint venture for the 2014 fiscal year did not meet expectations. The reason for this was the political tension in Russia and Ukraine, which almost brought transports to a complete standstill.

In addition to these developments in the industrial goods segment a stronger competition had a negative impact on revenue for the transport of liquid goods. A further aspect was the extraordinary expenditures which arose from a process optimization and structural change program. Consequently, EBITDA amounted to EUR -0.2 million and was thereby EUR 4.1 million below the previous year’s rate (EUR 3.8 million). The EBITDA margin on gross income fell to -0.9 per cent (previous year: 16.8 per cent)

Despite fierce competition in the market, the Tank Container Logistics Division was able to maintain its position in 2014. Various developments also occurred in the individual regional markets: although the number of European transports increased, the Asian and American markets were only able to remain stable. As a consequence, Tank Container Logistics revenue amounted to EUR 150.9 million and therefore almost achieved the previous year’s result (EUR 152.3 million). At EUR 12.8 million, EBITDA was 38.7 per cent over the previous year’s figure (EUR 9.2 million) and the EBITDA margin on gross income, which reached 48.9 per cent, was also above the previous year’s result (38.1 per cent).

As of December 31, 2014, the number of VTG Group employees increased to 1,312 (previous year: 1,191). The increase is primarily due to the implemented merger with Kuehne + Nagel’s rail logistics activities. 909 employees worked in Germany (previous year: 846), of which 398 were in Hamburg (previous year: 390).

www.vtg.de

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