Strong Third Quarter for Jungheinrich

Net Sales and EBIT Post Double-Digit Growth/Disproportionately Strong Growth of New Truck Business/Forecast for 2014 Confirmed 

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The Jungheinrich Group's positive trend continued in the third quarter of 2014. Net sales rose by 10 per cent from July to September 2014, while the value of incoming orders increased by 9 per cent. In the third quarter of 2014, EBIT was 12 per cent up year on year. Unit production figures rose by 12 per cent during the same period of time. The 22 per cent increase in orders on hand since the end of December 2013 is proof of the company's good order books. Based on these figures, the Board of Management confirmed and concretized its forecast for the current fiscal year.

Irrespective of the first signs of uncertainty regarding the development of the world economy, the global material handling equipment market grew by 9 per cent to 818.6 thousand forklift trucks in the first nine months of the year (prior year: 752.0 thousand trucks). Europe, Jungheinrich's main sales market, posted an increase of 11 per cent. Demand rose by 12 per cent in Western Europe, with market volume in Eastern Europe advancing by 3 per cent. In Asia, demand grew by 13 per cent, with the North American market achieving a gain of 6 per cent.

The value of the Jungheinrich Group's incoming orders, encompassing all business fields, amounted to 1,874 million euros in the first nine months of the financial year and was thus 8 per cent higher than the figure recorded a year before (1,743 million euros). In the third quarter of 2014, incoming orders rose by 9 per cent from the figure recorded in the same period last year (574 million euros) to 628 million euros. As of September 30, 2014, orders on hand from new truck business totalled 446 million euros and were thus 80 million euros, or 22 per cent, higher than by the end of 2013. The order reach remained at four months.

Net sales in the third quarter of 2014 amounted to 615 million euros which was 10 per cent higher than the figure achieved in the same period last year (560 million euros). Net sales after the first nine months of 2014 were up 9 per cent to 1,792 million euros (prior year: 1,638 million euros). In Germany, net sales in the same period increased by 9 per cent to 472 million euros (prior year: 434 million euros). Foreign net sales climbed by 10 per cent to 1,320 million euros (prior year: 1,204 million euros). Non-European net sales posted a particularly steep rise, advancing by 18 per cent, buoyed by strong growth in Asia.

The significant increase in consolidated net sales is primarily due to the very disproportionately strong rise in net sales in new truck business. Net sales from short-term hire and used equipment as well as after-sales services also displayed very positive development in the third quarter. In the first nine months of 2014, the Jungheinrich Group increased net sales in new truck business by 14 per cent to 966 million euros (prior year: 846 million euros). Overall, the short-term hire and used equipment business posted a rise of 9 per cent to 315 million euros (prior year: 290 million euros). Net sales from after-sales services advanced by 4 per cent to 540 million euros (prior year: 517 million euros). The financial services business also contributed to the growth, posting an 8 per cent rise in net sales to 427 million euros (prior year: 396 million euros).

In the third quarter of 2014, the Jungheinrich Group lifted EBIT by 12 per cent to 46.8 million euros (prior year: 41.8 million euros). After the first nine months of 2014, EBIT was up 8 per cent to 133.4 million euros (prior year: 123.9 million euros). The return on sales was 7.4 per cent (prior year: 7.6 per cent). Net income in the third quarter of 2014 amounted to 31.1 million euros (prior year: 26.8 million euros), rising by a cumulative 14 per cent to 87.0 million euros (prior year: 76.1 million euros). Accordingly, earnings per preferred share after nine months totalled 2.59 euros (prior year: 2.27 euros).

The Jungheinrich Group's balance sheet total had risen by 148 million euros to 2,899 million euros by September 30, 2014 (December 31, 2013: 2,751 million euros). The equity ratio was 29.8 per cent (December 31, 2013: 30.2 per cent). Intangible and tangible assets were up 24 million euros to 442 million euros. This primarily reflected the acquisition of real estate for the branch office in Singapore as well as the progress made in the construction of the new corporate headquarters in Hamburg and the training centre at the Norderstedt factory.

Jungheinrich further expanded its sales presence in the period from January to September 2014. Group manpower rose by 608 to 12,448 staff members (December 31, 2013: 11,840 employees) and by 262 staff members in the third quarter. Of the total workforce, 6,832 employees worked abroad (December 31, 2013: 6,484) and 5,616 were active in Germany (prior year: 5,356). Headcount in the Hamburg metropolitan area rose to 2,542 (December 31, 2013; 2,466 employees).

Although the global economic outlook is increasingly marked by uncertainty, Jungheinrich anticipates that the worldwide market for material handling equipment will continue expanding in the remaining months of the year. Europe's market—with Western Europe as the growth driver —is currently expected to continue displaying positive development, albeit with slightly less momentum than witnessed thus far. In this context, it remains to be seen how the unfolding of the Ukraine crisis and the geopolitical uncertainty in the Near East will affect the development of the economy. The growth of the Asian and North American markets will probably persist, albeit with slightly waning momentum in both regions.

In light of current economic and market assessments, the business trend observed thus far, and the continued increase in orders on hand, the Board of Management confirms and concretizes its forecast for incoming orders, net sales and EBIT for the financial year underway. Incoming orders and consolidated net sales are each expected to total between 2.45 billion euros and 2.50 billion euros. EBIT should amount to between 180 million euros and 185 million euros. Says Hans-Georg Frey, Chairman of the Board of Management of Jungheinrich AG: "Given this positive development, we are confident of being able to achieve our goals for the year and are making a decisive step towards hitting our medium-term target of 3 billion euros in net sales."

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.