Reforms improve VR Group's operating result

VR Group indicators from 2013 Q2 (figure for Q2/2012 in brackets) - Turnover 356.6 (361.7) MEUR - Operating profit (4.1) MEUR - Comparable turnover grew by 9.1 per cent - Profit on operations improved year-on-year - The Group is undertaking major reforms VR Group's Q2 operating profit was slightly down year-on-year and is due to higher sales profits in the year of comparison. However, operating profit excluding sales profits from sale of property improved year-on-year. The profit on operations in Q2 amounted to 3.0 (-0.5) MEUR and cumulatively -6.9 (-25.9) MEUR from the start of the year. The Group's ongoing reforms among other factors have served to improve the result.

- The rationalization measures we have carried out are starting to have an effect. We are heading in the right direction but there is still work to be done, says President and CEO Mikael Aro . Personnel to participate in the reforms Aro says the Group will engage in discussions with all personnel during autumn trying to find ways to make work more efficient and reform the Group's operations. The discussions will launch the Group's savings project published in May. VR Group is aiming at savings worth 40 MEUR in personnel costs. Aro says that the extension to the exclusive right to operate long-distance rail services granted in the summer supports VR's reforms but also sets high expectations for the company.

- We must now be able to meet these expectations. This requires a lot from us. Increasing passenger volumes The recent reforms are already starting to show as increasing passenger volumes on long-distance services. A total of 23.8 million trips were made by road and rail amounting to an increase of 7.1 percent year-on-year. The growth on the longer routes of long-distance services and in Allegro services to Russia are particularly positive details. The turnover for Logistics for the start of the year amounted to 114.0 MEUR. Comparable operating profit decreased by 6.9 per cent. The result of Rail Logistics improved clearly year-on-year due to the rationalization measures. The demand for logistics services is strongly dependent on domestic industrial output. Demand can be expected to pick up only in 2014.

The Q2 turnover of Infrastructure Engineering nearly doubled and amounted to 84.1 (56.6) MEUR. Turnover grew in all business sectors with the exception of Sweden. Cumulative operating loss decreased significantly from last year. Due to a strong order portfolio (468 MEUR) the whole division's operating result can be expected to become profitable in Q3. Investments at the start of the year amounted to 47.1 MEUR. The main investments were the acquisition of a new type of steering cars, freight wagons for Logistics, the Logistics terminal being constructed in Kouvola and the Oulu depot. The comparable turnover for 2013 is expected to improve year-on-year. Operating profit is also expected to improve due to the rationalization measures and cost savings.