- LeasePlan Corporation recorded a net profit of EUR 126.3 million for the first half-year of 2007 (+28 percent vs. first half-year of 2006). The company’s core business developed favorably and benefited in general from a positive economic environment, which had a favorable impact on net earnings.
The assessment of non-core business resulted in the divestment of JB Carrosserie/Carflexs, vehicle body repair companies in Belgium and the Netherlands. Excluding the impact of this divestment and a further impairment on assets of a disposal group held-for-sale, the net profit increased to EUR 111.5 million for the first half-year of 2007 (+13 percent vs. first half-year of 2006).
The outlook for the remainder of 2007 is positive, the company said. Also, on the basis of year-to-date results, LeasePlan Corporation expects the full-year 2007 profit to well exceed the comparable 2006 profit.
The lease contract portfolio expanded in the first half-year 2007 by 3.6 percent to EUR 13.7 billion after reclassifying the lease portfolio of MOX as assets of a disposal group held-for-sale. The financed fleet increased by 12,600 units (+1.3 percent) to approximately 960,000 vehicles since December 31, 2006. The total fleet under management increased by 1.8 percent to 1,281,000 units since December 31, 2006.
Total operating income for continuing operations increased by 3.1% to EUR 446 million (30 June 2006: EUR 433 million), while operating expenses were almost 1.2% lower at EUR 300 million (30 June 2006: EUR 304 million). This decrease in operating expenses is primarily due to lower general and administrative expenses and lower depreciation.
In response to the growing environmental concern in the business world, LeasePlan launched a global product to help clients actively measure, reduce and, ultimately, offset the CO2 emissions of their fleets. With GreenPlan, LeasePlan works hand in hand with its clients toward the reduction of CO2 emissions. This process is supported with a continuous tracking and measurement of those emissions. If the reduction objectives are met, LeasePlan awards companies with a FleetConscious Certificate. For companies that want to go that extra step, LeasePlan also gives the option of partially or totally offsetting the CO2 emissions generated by their fleets.
With regard to its own fleet, LeasePlan’s car emissions will be reduced or offset to the Kyoto norm of 130 g/km by the end of this year.
Also, LeasePlan reached agreement to acquire a 51 percent share in vdf Holding A.S. in May 2007, as an entrance to the Turkish operating fleet leasing market. In close cooperation with local partner Dogus Otomotiv, LeasePlan has expanded its worldwide network to 29 countries. vdf Fleet Services, the brand identity of vdf Holding A.S., has a fleet of approximately 6,000 vehicles and is a prominent player in the Turkish market. Through this entry to the Turkish market, LeasePlan will be able to meet the service demand of several of its existing international customers. Completion of the transaction is expected in the third quarter of 2007.
In the first half of 2007, LeasePlan Romania was incorporated and the joint venture in the United Arab Emirates became operational.
Also, in June 2007, the divestment of JB Carrosserie /Carflexs in the Netherlands and Belgium was finalized, achieving a profit on the carrying amount of this investment. Overall the preliminary positive impact on net profit was EUR 14.8 million. The effect of the sale of the body repair business on the balance sheet total was negligible and the nominal number of employees reduced by 452.
Effective Oct. 1, Guus Stoelinga succeeded Abe Tomas in the Managing Board of LeasePlan Corporation as CFO. After 19 years with LeasePlan, Tomas will move back to Australia for family reasons and pursue his career in another direction. Tomas will remain with LeasePlan Corporation until January 1, 2008.
Since joining LeasePlan in 1991, Stoelinga held various financial managerial positions. His most recent position was senior corporate VP of Corporate Strategy and Development.