Jungheinrich Continues Strong Course for Growth

• Value of incoming orders up 11 per cent; IO in terms of units up 20 per cent

• Net sales rise 8 per cent

• World material handling equipment market 4 per cent larger year on year

• European market volume up 13 per cent

The Jungheinrich Group stayed its course for growth in the first quarter of the 2015 financial year. At 666 million euros, the value of incoming orders was 11 per cent higher than the year-earlier figure. Incoming orders in terms of units rose substantially, jumping by 20 per cent to 24.5 thousand trucks. In the reporting period, consolidated net sales were up 8 per cent to 620 million euros.

In the first quarter of 2015, global demand for material handling equipment advanced by 4 per cent to 282.4 thousand forklifts (prior year: 272.3 thousand trucks). Europe, Jungheinrich's main sales market, recorded an increase of 13 per cent. Demand in Western Europe climbed by 17 per cent, whereas market volume in Eastern Europe declined by 11 per cent owing to the weakness of the Russian market. Excluding Russia, the Eastern European market posted 8 per cent growth. In Asia, market volume dropped by 5 per cent, whereas demand in North America rose by 9 per cent.

The Jungheinrich Group's unit-based incoming orders in new truck business, which include orders for both new forklifts and trucks for short-term hire, were 20 per cent up year on year in the first quarter of 2015 to 24.5 thousand trucks (prior year: 20.5 thousand trucks). The value of the Jungheinrich Group's incoming orders, encompassing all business fields, totalled 666 million euros and was thus 11 per cent higher than in the first quarter of 2014 (600 million euros). As of March 31, 2015, orders on hand from new truck business totalled 451 million euros and were thus 57 million euros, or 14 per cent, higher than the 394 million euros achieved in last year's corresponding period. The rise compared to the 379 million euros in value at the end of 2014 amounted to 72 million euros, or 19 per cent. The order reach was thus four months.

In the first quarter of 2015, consolidated net sales were up 45 million euros, or 8 per cent, to 620 million euros (prior year: 575 million euros). All of the business areas contributed to this growth. In Germany, the single-most important market, net sales grew by 3 per cent to 153 million euros (prior year: 149 million euros). Net sales generated outside Europe climbed by 9 per cent to 63 million euros (prior year: 58 million euros). The portion of consolidated net sales accounted for by countries outside Europe remained at 10 per cent. The foreign ratio rose from 74 per cent to 75 per cent.

In the first quarter of 2015, Jungheinrich drove up EBIT by 5 per cent to 42.3 million euros (prior year: 40.2 million euros). The return on sales was 6.8 per cent (prior year: 7.0 per cent). Net income advanced by 7 per cent to 27.6 million euros (prior year: 25.7 million euros). Accordingly, earnings per preferred share amounted to 0.84 euros in the first quarter of 2015 (prior year: 0.79 euros).

By March 31, 2015, the Jungheinrich Group's balance sheet total had risen by 59 million euros to 3,099 million euros compared to its level at the end of fiscal 2014 (December 31, 2014: 3,040 million euros). The equity ratio rose to 29.9 per cent (December 31, 2014: 29.6 per cent).

In the first quarter of 2015, Jungheinrich further increased its labour force—particularly in the European sales organization. As of March 31, 2015, a total of 12,740 people (December 31, 2014: 12,549 staff members) were employed throughout the Group—191 more than at the end of 2014.

With regard to its business performance over the remaining course of the year, Jungheinrich expects the world economy to display positive development. Against this backdrop, the company anticipates that the global material handling equipment market will continue to expand in the current year. At present, Europe's market—with Western Europe as the growth driver—is also expected to develop positively. Jungheinrich anticipates that the Eastern European market will shrink, with prospects of stable development if the Russian market recovers considerably over the course of the year. As before, the company expects the Asian market to grow. However, the prerequisite for this is that demand for IC engine-powered counterbalanced trucks recovers as the year progresses. The North American market should continue to expand.

Says Dr. Volker Hues, Chief Financial Officer of Jungheinrich AG, "Based on this generally positive economic outlook, we expect both incoming orders and consolidated net sales to range between 2.6 and 2.7 billion euros in 2015. Our assessment is that EBIT will amount to between 190 and 200 million euros in the financial year underway."

Jungheinrich ranks among the world’s leading companies in the material handling equipment, warehousing and material flow engineering sectors. The company is an intralogistics service and solution provider with manufacturing operations, which offers its customers a comprehensive range of forklift trucks, logistics systems, services and advice. Jungheinrich shares are traded on all German stock exchanges.

The Jungheinrich Group at a glance