VR Group’s net result weaker than expected

7. May 2012 News and current issues

VR Group’s first quarter net turnover in 2012 was slightly down on the figure for the previous year. Net turnover in the quarter totalled M€ 331.7, compared to M€ 332.7 in 2011. The change in net turnover was -0.3 %. The operating result in the first quarter was a loss of M€ 18.7 (-10.5), and the net result was M€ -14.0 (-8.2). “VR Group’s net result in the first part of the year was slightly weaker than had been expected. One point worth noting, however, is that the company succeeded in providing rail services early in the year better than in the past couple of winters, and there was a clear improvement in the punctuality of these services. We face the future with confidence, for there are positive signs in developments in infrastructure engineering and passenger services,” says Mikael Aro , President and CEO at VR Group. The first quarter net result was depressed by the rise in personnel costs and in energy and rolling stock costs and by the smaller than anticipated growth in net turnover. One-time items that reduced the net result totalled M€ 6.7. VR Group’s operating result excluding one-time items was M€ -7.9. Similar volumes for Passenger Services as last year Altogether 23.9 million journeys were made in rail and road services during the first quarter, an increase of 1.7 % from the previous year. The number of rail journeys increased slightly from the previous year, rising by 0.4 %. The number of passengers on services to and from Russia increased 12.3 % and between Helsinki and St. Petersburg 17.5 %. In the first quarter of last year two Allegro train units were in service, and there were two daily departures from Helsinki and St. Petersburg. Now there are four daily departures, and all four train units are in service. Only slight increase in carryings by Logistics Freight carryings totalled 10.1 million tonnes in the first quarter of the year, an increase of just 0.5 % on the previous year. The volume of carryings has declined in virtually all product categories carried, in domestic and international services. Transit carryings, in contrast, have recorded a sharp increase thanks to the transport of wood pellets. Normal start to year for Infrastructure Engineering First quarter net turnover for Infrastructure Engineering fell 14.4 % from the previous year. It is quite normal for the start of the year to be a quiet period for infrastructure engineering, since construction work cannot be carried out in the winter. VR Track has been successful in competitive tendering, however, and the order book for 2012 looks promising. More information: CFO Heli Lehtonen, VR Group, tel. +358 307 20 100 VR Group is a versatile, environmentally friendly and responsible travel, logistics and infrastructure construction service company. VR Group provides employment for 12 000 professionals in Finland and ten European countries.