LeasePlan Show Solid Profit In Half-Year Report
LeasePlan, the world’s largest vehicle management company, have just released their half-year report, which shows the company made a solid profit, in a very trying time financially for everyone, of €61 million and portfolio stability.
The CEO of LeasePlan, Vahid Daemi, commented on the results: “I am pleased with our positive performance in the first half of 2009. Although the global economic crisis has deepened and given that we focus on maintaining our margins instead of growth, we managed to maintain the value of our lease portfolio in a contracting market, reconfirming and reinforcing our global leadership position. The quality of our portfolio is also evidenced by the strong partnership with our clients to jointly get through this crisis. Our clients show great understanding of the impact of the economic turmoil and we are offering increased contract flexibility and robust savings on their total cost of ownership. As anticipated, our results have been negatively affected by the current economic conditions that led to unprecedented losses in the remarketing of end of contract vehicles across the world. Yet more than ever, we benefit from the investments made in our high quality risk-management processes and our global presence, which enabled us to better control the risks related to reduced residual values. In view of these circumstances, our solid profit in the first half of 2009 marks a good performance and indicates the structural health of our business model and strength of our company.”
Whereas most economies reported negative growth and companies are downsizing, LeasePlan maintained the total value of the lease contracts at approximately €14 billion. Adjusted for currency differences, the portfolio value decreased by 2.7% compared to the end of December 2008. The number of vehicles also slightly decreased, reflecting initiatives of clients downscaling their company car fleets.
Net profit for the first half of 2009 is €61 million, a reduction from the €112 million reported in the same period last year, which is predominantly attributable to the reduced prices for used cars following the severe downturn in that market.
LeasePlan Key Figures (In € Millions)
Jun ‘09 Dec ‘08
Lease Portfolio 14,147 14,204
BIS Ratio 13.6% 13.2%
Tier 1 Ratio 11.6% 9.8%
No. Of Vehicles (000) 1,368 1,391
1H09 1H08
Profit For Period 61 112
The Half-Year Report 2009 of LeasePlan is made available on the website www.leaseplan.com.
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