De Lage Landen announces mid year results 2013
Eindhoven, NL, September 19, 2013 - "The start of our operations in Turkey marks another important step for De Lage Landen. Our international scope expands to support our global partners with tailored solutions for their specific markets. Our global reach with precision at the local level is a core strength from which we are seeing some very positive benefits," reacts CFO Frans Overdijk on the mid year results which De Lage Landen (DLL) published today.
DLL reported that it has grown its portfolio in the first six months of 2013 with 2% to EUR 31.3 billion ($ 40.8 billion). DLL's new business volume amounted in this period to EUR 10.6 billion ($ 13.9 billion). "Through strict cost control and the investments in a lean organization we will further build on our agility and flexibility," said Overdijk on behalf of DLL's joint Executive Board. "We aim to offer stability to our customers worldwide by listening and thinking with them about long term solutions in their ever-changing industries. This determines also our success for the remaining part of 2013 and beyond."
Strong performance in Food & Agriculture segment
DLL reports a steady performance across all business channels for the first half of 2013, with especially high performing activities in the Food & Agriculture market. This segment of the company's business portfolio grew to 37% of its total vendor finance business. Regionally, both DLL's Americas region and the combined business in Europe and Asia-Pacific performed above plan. Currently active in 36 countries worldwide, DLL today employs over 5,500 people.
Cost control positively influences company's income
In the first half of 2013, DLL saw an increase of short- term commercial financing solutions. Volumes exceeded plans by 18%. Consumer Finance solutions, mainly sold in the Dutch home market via the Rabobank channel and online label Freo, showed a slight decrease. DLL's activities in mobility solutions remained stable, reporting a higher end-of-lease income of its car fleet. This contributed to a reported net income by DLL of EUR 764 million ($ 1,003 million) with a net profit of EUR 208 million ($ 273 million) as a result of DLL's strategy to keep its cost structure under control. Low impairment charges contributed to a limited increase of value adjustments which are still well under the long term average.
Liezelotte Rijk
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