Financial results SNCB Logistics 2011
Despite difficult economic circumstances, SNCB Logistics has reduced its operational loss in 2011. The net result is impacted by impairments and provisions
Brussels, 8 May 2012. Today the Board of Directors of SNCB Logistics SA has adopted the nonconsolidated results for the 2011 financial year. 2011 was SNCB Logistics’ first working year (11 months) as an independent private enterprise with its proper staff, since the launch of the company on 1 February 2011.
The Board of Directors confirms its confidence in the continuity of the company and its subsidiaries and anticipates that the group will achieve a consolidated financial equilibrium in 2013 thanks to the implementation of the restructuring plan. SNCB Logistics has recorded significant exceptional impairments and provisions.
Results SNCB Logistics SA
SNCB Logistics SA closed 2011 (11 months) with an operational loss (EBITDA) of € -34.5 million, which means an improvement of the result of the activity, compared to the results in previous years. The improvement in 2011 is partly due on the one hand to the effects of the altered perimeter, after the creation of the independent company, and the granting of support approved by the European Commission, and on the other hand to operational measures. SNCB Logistics has still recorded a significant loss but was nonetheless able to push through important cost-cutting measures, in difficult economic circumstances and record a 3% growth in volume compared to 2010 (to 41.1 million tons for the whole year 2011).
Exceptional impairments and provisions
SNCB Logistics has also booked an exceptional impairment on a number of its assets and made some provisions for disadvantageous contracts. Basically the impairments involve value corrections on stakes in subsidiaries, in view of less favourable economic prospects, as well as on assets such as terminals, locomotives and wagons, in order to bring them into line with their estimated market value.
These one-time impairments and provisions are the main explanation for the big difference between the company’s operating loss and the net loss in 2011.
Key figures SNCB Logistics SA for 2011 (11 months / non-consolidated / in € million)
The subsidiary IFB, a terminal and intermodal operator, closed 2011 with a net loss of € -15.1 million (EBIT € -22.4 million). A recovery plan was approved by the Extraordinary General Assembly on 30 September 2011 and continues to be implemented.
The subsidiary Xpedys, which is specialised in logistics solutions for conventional transport, posted a good result in 2011, despite the unfavourable evolution of the market, with an operating profit of € 4.2 million and a limited net loss of € -4 million.
The Board of Directors maintains the goal of profitability for SNCB Logistics and its subsidiaries in order to have them reach a consolidated financial equilibrium in 2013. Working away the cash drain will remain a top priority for SNCB Logistics and IFB in 2012. Already, in the first quarter of 2012, the recurring operating loss of both SNCB Logistics and IFB has been halved again compared to the same period last year.
The sale of wagons and locomotives that have become redundant due to improvements in efficiency is part of the planned reorganisation. In fact, the relatively low volumes and the ongoing restructuring have made it possible for SNCB Logistics to transport the same volumes with fewer production resources. Additional measures will be taken throughout the organisation to reduce costs, increase productivity and quality and continue the recruitment of own staff in line with the commitments which were agreed with the European Commission.
In addition, as has already been announced, the set up of a terminal company to group all the terminal activities of the SNCB Logistics group remains on the agenda. Shareholding in this company could be opened up to third parties (while retaining a majority of the shares).
About SNCB Logistics:
SNCB Logistics is an independent, high performing, international logistics group that is part of the SNCB group. Headquartered in Brussels, it is active in 11 countries. The group was created in 2008 by integrating all companies that were active in the SNCB freight division to bring strengths and complementary activities under one sound structure. On 1 February 2011, the company SNCB Logistics became operational as a rail operator and international group. All entities of the group work on the same clear mission: to grow into a profitable, independent, efficient and international transport group that provides logistical total solutions and customer-oriented services to companies and large industrial groups (on the basis of rail, inland shipping, road transport, terminals, warehousing, on-site operations, etc.). To that end,SNCB Logistics will endeavour continuously to improve quality, productivity and cost efficiency and to expand its international offer and network. The group’s commercial flagships are IFB for container transport and Xpedys for logisticalsolutions for conventional transport (bulk, steel and chemical products, automotive and consumer goods). SNCB Logistics is responsible for rail production in Belgium, and calls on reliable partners such as Cobra and Sibelit for international rail transport.
For more information: SNCB Logistics – Veerle Van Mierlo – Telephone: 00 32 (0)2 528 37 37 – 00 32 (0)472 92 02 29 – E-mail: email@example.com – 40 Avenue de la Porte de Hal, 1060 Brussels