11 August 2016, 09:01
Strong second quarter and first six months
H1 incoming orders up 19 per cent in value and 15 per cent in terms of units; net sales up 10 per cent
Orders on hand close June 41 per cent higher than at the end of 2015
Forecast raised for incoming orders, net sales, EBIT and EBT
The Jungheinrich Group accelerated growth yet again in the second quarter and looks back on a very strong first half of 2016 overall. All key performance indicators posted double-digit year-on-year increases. In view of the positive performance, the Board of Management has lifted the forecast for the year underway as regards incoming orders, net sales, EBIT and EBT.
Says Hans-Georg Frey, Chairman of the Board of Management of Jungheinrich AG:
"In the first six months of 2016, Jungheinrich developed better than the market and the competition yet again and increased its shares of its core market, Europe, and of the world market. In view of this strong performance and our good order books, we are raising our forecast for the 2016 financial year: Incoming orders should total between €3.1 and €3.2 billion. Consolidated net sales should be in the range of €3.0 to €3.1 billion. Based on our estimates, full-year EBIT will amount to between €228 and €238 million. We expect earnings before taxes to come in between €208 and €223 million. Jungheinrich is on course, and we will continue to pursue our above-average course for organic growth on the basis of our Group's long-term strategy."
Development from January to June 2016
In the first half of 2016, the world material handling equipment market displayed positive development, growing by 3 per cent. The European market was the driving force, expanding by 13 per cent. Following its severe collapse in the last few years, Russia has returned to a course for growth (29 per cent larger). Owing to weaker demand for IC engine-powered counterbalanced trucks, the Asian market contracted slightly (2 per cent smaller), whereas demand in China rose by 3 per cent. North America’s market volume nearly matched last year’s corresponding level (down 1 per cent).
In the period under review, the warehousing equipment product segment posted a gain of 10 per cent—the strongest increase the world over. Contributing to this growth were Europe and Asia, posting gains of 15 per cent and 10 per cent, respectively. During the same period, the world market for battery-powered counterbalanced trucks expanded by 7 per cent, whereas global demand for forklifts with IC engine-powered drives dropped by 6 per cent. In the IC engine-powered counterbalanced truck product segment, the significant shrinkage of the Asian market, excluding China, which was 7 per cent smaller, was the main reason for the market’s weakness. Moreover, demand for IC engine-powered forklifts in North America shrank as well (down 8 per cent). Market volume in the IC engine-powered truck segment advanced by 5 per cent in Europe. The European market for battery-powered counterbalanced trucks grew by 13 per cent.
Jungheinrich displayed very positive development and maintained its course for growth in this environment. In the first six months of the new financial year, the value of incoming orders in all divisions totalled 1,626 million euros—up 19 per cent on the 1,369 million euros recorded a year earlier. During the same period, incoming orders in terms of units rose by 15 per cent to 56.7 thousand trucks (prior year: 49.3 thousand forklifts). At the end of June 2016, orders on hand from new truck business totalled 671 million euros, surpassing the 477 million euros recorded on December 31, 2015 by 41 per cent. This is the basis for another good business trend in the second half of the year. In the first half of 2016, the Jungheinrich Group's net sales amounted to 1,431 million euros (prior year: 1,300 million euros) exceeding last year's corresponding figure by 10 per cent. In the same period, production output advanced by 11 per cent to 51.5 thousand trucks (prior year: 46.6 thousand forklifts). In the first half of the year, EBIT was up 13 per cent to 111.6 million euros from 98.6 million euros in the same period in 2015 (including the positive one-off 4.7 million euro effect resulting from the deconsolidation of UK-based Boss Manufacturing Ltd.). Earnings before taxes were 11 per cent higher, rising to 102.0 million euros (prior year: 91.8 million euros).
The Jungheinrich Group at a Glance