LeasePlan drives net profits to 7.4% gain
The Netherlands-based corporation said that net profit increased by 7.4% to €241m, compared to €225m in 2011, marking a near record figure. The total number of vehicles remained stable at 1.3 million.
LeasePlan also said its profit numbers were positively influenced by a turnaround in results of vehicles sold.
Vahid Daemi, CEO of LeasePlan, said: ‘As we celebrate our 50th anniversary we are proud to be able to report such strong results. Against a backdrop of challenging economic and market conditions, LeasePlan management and employees maintained their focus on our clients while continuing to deliver strong performance both financially and in terms of our strategic priorities. As a result, we achieved a near-record net profit, which is a strong testament to the stability and global reach of our business.’
The strong results were delivered despite the economic challenges occurring in a number of regions across the globe. With operations spread over five continents, the company said that certain countries were subject to rather subdued business activity in 2012 yet still remained profitable, while others demonstrated very positive market growth and LeasePlan was able to increase its market share accordingly. It commented: ‘This global breadth provides LeasePlan with the necessary stability to navigate an uncertain worldwide economy.’
It added that its diversified funding strategy made further gains with a completed US institutional debt offering and that it has a strong solvency position with a core tier 1 ratio of 15.7%, up from 14.9% in 2011.
Looking ahead to 2013, the company said: ‘LeasePlan anticipates a similarly mixed year ahead in terms of the global economy and market conditions. We foresee continued challenges in certain regions, with potentially more encouraging market conditions in other areas as well as expansion into new markets.
‘As we celebrate our 50th year in existence we remain optimistic about the strength of our organisation. In terms of performance, our primary sources of strength continue to lie in the global reach and scale of our business, our diversified funding approach, our client focus and the expertise and commitment that exists in our entities globally.’For more of the latest industry news, click here.