Airport Towing Trucks For Material Handling

Hamburg—Jungheinrich AG has left a difficult 2009 fiscal year behind it. It was marked by the global economic crisis which also affected the material handling equipment industry significantly. The company faced a reduction in market volume of approximately 46 per cent in its core markets in Europe alone. Nevertheless, Jungheinrich succeeded in growing its share of the market. Extensive measures taken to manage the crisis and improve earnings enabled the company to return to operative profitability as early as in the autumn of 2009. Nevertheless, the company closed the year as a whole with a substantial loss, taking account of high one-off expenses. Jungheinrich expects the economy to post a marginal recovery in 2010, followed by a more favourable business trend than in 2009.

Group net sales for the 2009 reporting year amounted to 1,677 million euros—some 22 per cent down on the year-earlier level (2,145 million euros). Domestic business posted a year-on-year drop of 16 per cent, while foreign sales decreased by 24 per cent. As a result, the foreign ratio declined by two percentage points to 72 per cent. All divisions were affected by the fall in sales, and new truck business was hardest hit, experiencing a drop of 34 per cent. The short-term hire and used equipment business followed, posting a decline of just 8 per cent. After-sales services displayed relatively stable development, shrinking by 4 per cent.

Incoming orders decreased by 23 per cent to 1,654 million euros (prior year: 2,145 million euros). By December 31, 2009, the value of orders on hand from new truck business had dropped by 14 per cent to 208 million euros (prior year: 242 million euros).

“By taking extensive adjustment and restructuring measures rapidly and resolutely, Jungheinrich achieved an operative turnaround after a mere eight months. Despite this, substantial one-off expenses resulted in a significant loss overall, to which we are reacting by reducing the dividend,” explained Hans-Georg Frey, Chairman of the Board of Management, at the balance sheet press conference on April 14, 2010 in Hamburg. Earnings before interest and taxes (EBIT) from operating activities were positive for 2009 as a whole, totaling 8 million euros. Including 80 million euros in one-off expenses, EBIT decreased to a negative 72 million euros (prior year: a positive 122 million euros). The corresponding EBIT return on sales fell to a negative 4.3 per cent (prior year: a positive 5.7 per cent). The EBIT return on capital employed (ROCE) declined to a negative 16.8 per cent (prior year: a positive 18.8 per cent). Net income decreased to a negative 55 million euros (prior year: a positive 77 million euros). Imputed earnings per share dropped to a negative 1.62 euros (prior year: a positive 2.26 euros).

Despite the difficult situation, Jungheinrich made forward-looking investments in 2009 as well. Our capital spending on research and development amounted to 39 million euros, matching the previous year's level. Hans-Georg Frey commented: “Despite the economic crisis, we steadily expanded our range of products, supplied our customers with tailor-made premium solutions, and made progress with future-oriented technologies. Furthermore, we made strategic investments, for example to enlarge our Logistics Systems Division and to expand our Asian operations.”

The Board of Management and the Supervisory Board of Jungheinrich AG will propose to the Annual General Meeting on June 15, 2010 that a dividend of 0.12 euros be paid for 2009 (prior year: 0.55 euros) per preferred share and that no dividend be paid (prior year: 0.49 euros) per ordinary share.

The Jungheinrich Group had to reduce its permanent workforce considerably in the 2009 financial year in reaction to the huge decline in demand for material handling equipment. As of December 31, 2009, the Group employed 10,266 people (prior year: 10,178), 5,473 of whom worked abroad (prior year: 5,834), and 4,793 of whom worked in Germany (prior year: 4,950).

Current business situation and outlook for 2010

The slight recovery of the market for material handling equipment witnessed in the second half of 2009 continued in the first two months of this year. Worldwide demand rose by a combined 31 per cent in the months of January and February 2010 compared to the low comparable volume in the preceding year. In this period, however, Jungheinrich's core markets in Europe only posted moderate growth of 3 per cent.

Jungheinrich's new truck business also benefited from this devlopment. In the first two months of 2010, the value of incoming orders, encompassing all business areas, increased by 4 per cent to 265 million euros compared to the year-earlier period (prior year: 254 million euros). During the same period, the value of orders on hand from new truck business rose by 11 per cent to 230 million euros. By the end of February 2010, net sales amounted to an accumulated 230 million euros, which was 8 per cent less than the 249 million euros recorded by the same time in 2009. This decrease resulted from the higher production volume in the beginning of 2009, which still benefited from the high level of orders on hand at the end of 2008.

“In addition to the Group's continued consolidation, we are preparing for the onset of growth caused by a rise in demand in new truck business this year. Initial signs of this are visible in the market, which make us confident,” commented Hans-Georg Frey. Jungheinrich expects its business trend for 2010 to be more favourable overall than in 2009. The basis for this is the company's conservative prediction of a slight rise in incoming orders to about 1.7 billion euros and in consolidated net sales to more than 1.7 billion euros. Building on this and taking into account the consolidation measures, the Jungheinrich Group will return to profitability in 2010 and expects to generate positive operating income in low, double-digit million euro territory.

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

Please address press-related inquiries to:
Jungheinrich AG, Markus Piazza, Head of Corporate Communications
Phone: +49-40-6948-1550, Fax: +49-40-6948-1599, markus.piazza@jungheinrich.de