Decline in freight carryings weakened VR’s first quarter net result
VR Group’s net turnover in January-March 2009 was M€ 307.0, compared with M€ 335.1 in the corresponding period of the previous year. The decline in net turnover was due to the considerable reduction in freight carryings in both rail and road services.
The Group’s net result in the first months of the year was a loss of M€ 17.9, compared with a profit of M€ 4.7 in the corresponding period in the previous year
The Group’s net result for the whole year is forecast to be weaker than for the previous year. The net result is affected especially by the sharp decline in freight services.
Freight services declined by more than a quarter
The volume of freight conveyed by rail in January-March totalled 7.6 million tonnes. This is 28.1 % less than in the corresponding period in the previous year. The most significant fall was in forest industry carryings. Domestic carryings totalled 5.4 million tonnes, a decline of 20 %. International carryings declined 42.5 % to 2.2 million tonnes, with traffic to and from Russia decreasing 39.3 %.
Freight carryings by road services amounted to 1.5 million tonnes, which is 32.0 % less than in the previous year. Volumes fell in both domestic and international traffic.
Recession has smaller impact on passenger services
A total of 17.3 million journeys were made by rail in the first three months of the year, 1.5 % less than in the corresponding period in the previous year.
Altogether 3.3 million journeys were made in long-distance rail services. The number of journeys declined 5.7 %, due in particular to the reduction in business travel. Another reason for the decline in rail travel during the first three months was that this year the Easter season fell in April.
The number of journeys in commuter services in the Greater Helsinki area declined 0.5 %. The number of journeys in the YTV area was unchanged from the previous year, and outside this area in VR’s zone services the number declined 2.4 %.
Altogether 5 million journeys were made in VR’s road services, an increase of 18.1 % from the previous year. This growth was due mainly to new contracts won in the Greater Helsinki area.
VR-Track’s net turnover increased
The net turnover of VR-Track group totalled M€ 44.2 (M€ 42.3). The main work in the first quarter is winter maintenance of the track network.
VR Group’s capital expenditure amounted to M€ 25.3 (M€ 26.5) in the January-March period. The largest items of expenditure were on property, freight wagons and passenger rolling stock. No decisions were made on major new investments.
VR Group Interim report 1 January–31 March 2009