LeasePlan reports net profit of EUR 136 million for the first half of 2011
Almere, The Netherlands – LeasePlan Corporation N.V., the world's leading fleet and vehicle management company, today published its interim results for the first half of the year.
- Reported net profit for H1 2011 was EUR 136 million (H1 2010 reported net profit:
EUR 90 million).
- The number of vehicles under management increased moderately to 1,296,842 (+0.26%), marking a change of declining numbers for the past two years.
- Strong capital position with a stable BIS ratio of 16.6% and Tier 1 ratio of 14.5%.
- Diversified funding strategy in good shape with further placements of securitised lease assets and the reopening of our retail savings bank in the Netherlands.
Full details of LeasePlan’s results for the first six months of the year can be found in the Interim Report 2011 (pdf, 5.2mb).
Vahid Daemi, Chairman and CEO of LeasePlan Corporation said:
“It is a testament to the strength of our business that with a global economy that continues to present challenges we have again achieved solid profits and witnessed growth in our business.
The figures show that the first six months of the year has developed very positively for LeasePlan with the number of vehicles increasing to 1,296,842 from a position of 1,293,516 vehicles at the end of 2010. While this represents a relatively modest increase, more significantly it marks a change of declining numbers witnessed over the past two years where there was a contracting of both operational leasing and fleet management markets.
Underneath this modest increase is a growth in our full-service product of almost 10,000 units. This result implies a higher value added product being sold and a continuation of the trend towards outsourcing fleet management as a favoured method of achieving company-provided transportation needs.
Building on our solid base of the last few years, the beginning of 2011 has seen the business continue the trend we previously described, namely the return of profitability to pre-crisis levels. With a net profit of EUR 136 million LeasePlan has achieved a record result in terms of half year figures.
The increase in profit described recognises one off items (EUR 12.5 million net) and positive timing differences on unrealised gains (EUR 6.5 million net). Even taking these factors into consideration, the net profit realised for the first six months of 2011 increased compared to the same period in 2010 and 2009.”
Outlook for the second half of 2011
For the remainder of 2011 we are confident about the strength of the performance of our business in the majority of countries in which we operate. However, we take great caution in the recent volatile behaviour in financial markets which are still impacted by the US debt concerns and the ongoing sovereign debt crisis in the European Union.
Despite these challenging market circumstances, LeasePlan continues to be in good shape. Our funding diversification strategy including focusing on retail deposits and securitisations has proven to work and has reduced our reliance on senior unsecured funding. In addition, LeasePlan has sufficient working capital and undrawn committed financing facilities to serve its operating activities.
Taking all factors into consideration, we expect to achieve positive results in the second half of the year at the same level as in the first half of the year, excluding the previously described one-off items and unrealised gains on financial instruments.
Journalists requiring further information should contact:
LeasePlan Corporation N.V.
T: +31 (0)20 4525225
Notes to editors
LeasePlan is a global fleet and vehicle management company of Dutch origin. Our full service offering consists of financing and operational fleet management services to meet the needs of a diverse client base. Established more than 45 years ago, we have grown to become the world’s leading fleet and vehicle leasing company with over 85% of our 6,000 workforce now operating outside of the Netherlands. Our global franchise manages around 1.3 million multi-brand vehicles and provides fleet and vehicle management services in 30 countries. We have a proven track record in enhancing our presence in traditional mature fleet markets, as well as expanding into new markets and growing our business to market leading positions. We are able to capitalise on our global presence and international network by providing innovative products, value for money and superior service to meet the needs of both national and multinational clients. We aim to do this by using our expertise to make running a fleet easier for our clients. This is reflected in our universal promise to all our clients: ‘It’s easier to leaseplan’.
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