VTG 2016 profit up

VTG Aktiengesellschaft, the European wagon hire and rail logistics company, became significantly more profitable in the financial year 2016, it has announced. Its group net profit nearly doubled to €57.5m (€29.4m in 2015).

Although revenue declined by 4% to €986.9m (€1,027.5m in 2015), the operating result (EBITDA) rose by 2.6% to €345.3million. Earnings before interest and taxes (EBIT) increased by 3.8% to €149.7m. This positive development is the result of the successful VTG 4.0 agenda, aspects of which include refinancing in 2015 and the realisation of synergies following the takeover of AAE.

Since profitability has improved sustainably, the executive board proposes that the dividend this year be increased from €0.50 to €0.75 per share.

CEO of VTG, Dr Heiko Fischer said: “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.

“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 €2.50 in the years ahead.”

For more information visit www.vtg.com

17th April 2017