Airport Towing Trucks For Material Handling

• Value of incoming orders up 9 per cent, IO in terms of units up
• 22 per cent
• Net sales increased by 4 per cent
• World material handling equipment market on par year on year
• European market volume up 8 per cent
• 2015 consolidated net sales between 2.6 and 2.7 billion euros

Hamburg-Jungheinrich AG got off to a good start to the new year. In the first two months of the new financial year, the value of incoming orders in all business areas totalled 418 million euros and was thus 9 per cent higher than the 384 million euros recorded a year earlier. Incoming orders in new truck business in terms of units rose by 22 per cent to 15.8 thousand units in the first two months of the year. At 418 million euros, by the end of February 2015, orders on hand in new truck business exceeded the 379 million euros recorded as of December 31, 2014 by 10 per cent.

The global material handling equipment market encompassed 164.0 thousand forklifts at the end of February, virtually matching the year-earlier level (164.9 thousand trucks). Market volume in Europe, Jungheinrich's main sales market, increased by 8 per cent. Whereas the Asian market shrank by 14 per cent, the North American market grew by 13 per cent. The backdrop to the decline of the Asian market was the steep drop in demand for IC engine-powered counterbalanced trucks in China (down 33 per cent).

In the first two months of 2015, the Jungheinrich Group's net sales totalled 391 million euros (prior year: 375 million euros) surpassing the year-earlier figure by 4 per cent. During the same period, production output fell by 6 per cent to 13.7 thousand forklifts as a result of the smaller number of manufacturing days.

In light of the positive economic outlooks for nearly all of the regions in the world—above all for the Eurozone—Jungheinrich expects the volume of the global material handling equipment market to rise further in the year underway. Europe's market volume should also display positive development. Demand in Western Europe may well continue to rise, albeit to a lesser degree than last year, whereas it should be flat in Eastern Europe. Jungheinrich anticipates that the Asian market will continue to grow as long as the Chinese market recovers over the course of the year. The North American market should also continue to expand.

"Based on these positive assessments, we expect 2015 incoming orders and consolidated net sales to range between 2.6 and 2.7 billion euros. On the basis of our estimates, EBIT for the current year should be between 190 and 200 million euros," stated Hans-Georg Frey, Chairman of the Board of Management, at the annual press conference on March 25, 2015 in Hamburg.

The financial year that just ended was a very successful one for Jungheinrich. In 2014, the company achieved record high incoming orders, net sales and EBIT, all of which were much improved year on year. Production figures eclipsed the record set in 2007 before the global financial crisis for the first time.

The value of incoming orders encompassing all business fields—new truck business, short-term hire and used equipment as well as after-sales services—was up 8 per cent year on year to 2,535 million euros (prior year: 2,357 million euros). New truck business displayed particularly good development, advancing by 114 million euros. Incoming orders in new truck business in terms of units rose by 9 per cent to 85.6 thousand forklifts from 78.2 thousand forklifts in the preceding year. Production volume, which tracked incoming orders with a time lag, increased by 15 per cent to 83.5 thousand trucks compared to 72.5 thousand trucks a year earlier, posting a new all-time high in 2014. As of December 31, 2014, orders on hand from new truck business totalled 379 million euros and were thus 4 per cent up on the 366 million euros achieved a year before.

In 2014, the world material handling equipment market grew by 8 per cent to 1,094 thousand forklift trucks. The main expansionary stimuli stemmed from Western Europe, China and North America. Europe, Jungheinrich's main sales market, posted a gain of 9 per cent to 344,500 units, with demand in Western Europe climbing 11 per cent, whereas the market volume of Eastern Europe was essentially flat.

In the year under review, consolidated net sales advanced 9 per cent to 2,498 million euros (prior year: 2,290 million euros). All business fields contributed to the increase in net sales, particularly new truck business, which expanded by 13 per cent. Domestic net sales were up 7 per cent to 655 million euros (prior year: 613 million euros). Foreign net sales climbed by 10 per cent to 1,843 million euros (prior year: 1,677 million euros). The foreign ratio thus rose to 74 per cent. The portion of consolidated net sales accounted for by countries outside Europe increased to 9 per cent.

Having improved earnings before interest and taxes (EBIT) by 12 per cent to 193 million euros, Jungheinrich lifted this figure to a new all-time high (prior year: 172 million euros). It benefited from the positive exceptional effect of the adjustment to the Dutch pension plan of 6.7 million euros. The EBIT return on sales was 7.7 per cent (prior year: 7.5 per cent). The corresponding return on capital employed (ROCE) was 18.4 per cent (prior year: 18.7 per cent). Net income improved by 18 per cent to 126 million euros (prior year: 107 million euros). Earnings per preferred share rose to 3.73 euros (prior year: 3.18 euros).

The Board of Management and the Supervisory Board of Jungheinrich AG are taking this development into account and will propose to the Annual General Meeting on May 19, 2015 that the dividend be increased significantly—by 0.18 euros—to 0.98 euros per ordinary share and 1.04 euros per preferred share. This represents a 21 per cent increase in the dividend per preferred share.

As of December 31, 2014, the Group employed 12,549 people (prior year: 11,840) 6,911 of whom worked abroad (prior year: 6,484) and 5,638 of whom worked in Germany (prior year: 5,356). The permanent workforce thus rose by 709 staff members in the financial year that just ended, 282 of whom were active in Germany. The lion's share of the manpower increase was attributable to the sales companies in Europe and Asia. As of December 31, 2014, Jungheinrich had 2,550 individuals on its payroll in the Hamburg metropolitan region (prior year: 2,466 employees) of which 1,130 were working at the Norderstedt location. Headcount at the Moosburg site (including the Degernpoint factory) rose by 95 to 1,125 (prior year: 1,030).

In 2014, the Jungheinrich Group's research and development expenditures surpassed the year-earlier figure by 11 per cent, amounting to 50 million euros (prior year: 45 million euros). Capital expenditures on tangible and intangible assets in the financial year that just ended totalled 84 million euros (prior year: 91 million euros). Investment magnets were the modernization of production at the Moosburg plant, the expansion of the Dresden Used Equipment Centre as well as the construction of a training centre at the Norderstedt factory and of the new corporate headquarters in Hamburg. Dr. Volker Hues, Chief Financial Officer of Jungheinrich AG: "Having concentrated on upgrading our production facilities to the state of the art in recent years, our focus now lies on investing heavily on sales. All in all, we plan to have a capex volume of 90 to 100 million euros in 2015."

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.