Airport Towing Trucks For Material Handling

Company Jungheinrich AG
Date 10.11.2015
  • Incoming Orders Grow 11 Per Cent from January to September
  • Net Sales Climb 10 Per Cent in the First Nine Months
  • EBIT and Net Income up 13 Per Cent

Hamburg—Putting in a strong performance in the third quarter of 2015, the Jungheinrich Group is on track to achieving its goals for the 2015 financial year. The value of incoming orders amounted to 2,089 million euros—up 11 per cent year on year. After nine months, consolidated net sales totalled 1,965 million euros and were thus 10 per cent higher than the 1,792 million euros achieved in the corresponding period last year. EBIT advanced by 13 per cent to 151 million euros from January to September from 133 million euros in the same period in 2014. Net income was 13 per cent higher than the figure recorded in the third quarter of last year. In view of the continued positive development, the Board of Management confirms the forecast raised in August for the fiscal year underway as regards incoming orders, net sales, EBIT and earnings before taxes (EBT).

Market
The global market volume expanded by 1 per cent from January to September 2015, from 818.6 thousand to 827.9 thousand forklifts, compared to the same period last year. Europe—Jungheinrich’s main sales market—recorded a rise of 7 per cent to 274.9 thousand (prior year: 257.2 thousand) forklift trucks. Whereas demand was up 11 per cent in Western Europe, market volume in Eastern Europe decreased by 12 per cent, owing to the significant contraction of the Russian market, which shrank by 42 per cent. Excluding Russia, the Eastern European market posted 5 per cent growth. Encompassing 321.9 thousand trucks, the Asian market was 6 per cent smaller than in last year’s corresponding period (342.3 thousand forklifts). The decrease was primarily a result of the decline in demand for IC engine-powered counterbalanced trucks in China. Asia’s market, excluding China, grew 4 per cent. Jungheinrich’s business was not affected by this development since it focuses its operations in Asia and China on the sale of warehousing equipment. After nine months, demand in North America had advanced 11 per cent to 172.1 thousand (prior year: 155.2 thousand) forklift trucks.

Incoming orders
Totalling 720 million euros in the third quarter of 2015, the value of incoming orders encompassing all business areas was 15 per cent higher than in last year’s corresponding quarter (628 million euros). In the quarter being reviewed, we booked a very large order, valued in mid-range, double-digit million euro territory, in the Logistics Systems division. Cumulatively, incoming orders totalled 2,089 million euros—up 11 per cent on last year’s corresponding figure (1,874 million euros). More than 60 per cent of the rise was owed to new truck business. As of September 30, 2015, orders on hand in new truck business totalled 516 million euros and were thus 137 million euros, or 36 per cent, up on the figure recorded by the end of 2014 (379 million euros). The order reach was thus over four months.

Net sales
In the third quarter of 2015, net sales amounted to 665 million euros and were thus 8 per cent higher than the figure achieved in the same period last year (615 million euros). Cumulatively, consolidated net sales amounted to 1,965 million euros, surpassing the figure recorded in last year’s corresponding period (1,792 million euros) by 10 per cent. In Germany, the single-most important market, net sales grew by 5 per cent to 497 million euros in the same period (prior year: 472 million euros). Foreign net sales advanced 11 per cent to 1,468 million euros (prior year: 1,320 million euros). Net sales generated outside Europe grew considerably, climbing by 23 per cent to 206 million euros (prior year: 167 million euros). This was primarily owed to the strong increase in net sales in China and the USA. The portion of consolidated net sales accounted for by countries outside Europe thus climbed to 11 per cent (prior year: 9 per cent). The foreign ratio rose from 74 per cent to 75 per cent.

The main driver of the substantial rise in consolidated net sales in the first nine months of 2015 was the significant increase in net sales generated by new truck business. Cumulatively, net sales in new truck business amounted to 1,063 million euros, surpassing the figure recorded in last year’s corresponding period (966 million euros) by 97 million euros, or 10 per cent. Overall, the short-term hire and used equipment business expanded by 36 million euros, or 11 per cent, to 351 million euros (prior year: 315 million euros). After-sales services posted further strong growth, recording a gain of 8 per cent to 583 million euros (prior year: 540 million euros). Net sales generated by the financial services business amounted to 470 million euros (prior year: 427 million euros).

Earnings
Due to the sustained positive development displayed by all business areas and the large number of units produced, the Jungheinrich Group closed the third quarter of 2015 with an EBIT of 52.8 million euros (prior year: 46.8 million euros). The EBIT return on sales (ROS) was 7.9 per cent in the third quarter of 2015, following 7.6 per cent in the same quarter last year. Cumulative EBIT after nine months was up 13 per cent to 151.4 million euros (prior year: 133.4 million euros). The EBIT return on sales (ROS) was 7.7 per cent, following 7.4 per cent in the same period in 2014. In the period from January to September 2015, net income totalled 98.6 million euros and was thus 13 per cent higher than the figure recorded in last year’s corresponding period (87.0 million euros). Accordingly, earnings per preferred share grew to 2.93 euros (prior year: 2.59 euros).

Balance sheet total
By September 30, 2015, the balance sheet total had grown by 158 million euros to 3,198 million euros (12/31/2014: 3,040 million euros). Intangible and tangible assets were up 26 million euros to 487 million euros (12/31/2014: 461 million euros). The Group’ s large-scale construction projects came to bear—in particular the construction of the new corporate headquarters in Hamburg and the modernization of production at the Moosburg factory.

Employees
Personnel capacity was expanded by 688 staff members in the period from January to September 2015, 259 of whom were added in the third quarter of 2015. The focus of the continued expansion remained sales—above all in Europe. As of September 30, 2015, as before, a total of 13,237 people were on the payroll throughout the Group, of whom 44 per cent worked in Germany, with the remaining 56 per cent being active abroad. As of September 30, 2015, Jungheinrich had a labour force of 2,646 individuals in metropolitan Hamburg (12/31/2014: 2,550 employees).

Sales network expansion
Jungheinrich took a majority stake in NTP Forklifts Australia at the end of October 2015. By making this important strategic acquisition, Jungheinrich is continuing to resolutely expand its global presence in direct sales. Headquartered in Adelaide, NTP Forklifts Australia has branch offices in all of Australia’s major regions and employs more than 230 people.

Outlook
Given that the economic forecasts issued to date and the development of the market from January to September 2015, Jungheinrich expects the world material handling equipment market to maintain its size compared to 2014 for 2015 as a whole. The company anticipates that Europe's market will continue to display positive development. Demand in Western Europe may well continue to rise, albeit with less momentum than thus far. This also holds true for Eastern Europe, with the exception of Russia. The Russian market is not expected to post a marked improvement in the fourth quarter of 2015. In Asia—with the exception of China—Jungheinrich also anticipates continued market growth, while in China only the warehousing equipment segment is likely to expand. The North American market should also continue to record good growth.

Says Dr. Volker Hues, CFO of Jungheinrich AG: “Based on the current assessment of the economy and market and the business trend to date, we confirm the forecast raised in August for the full year, predicting incoming orders of between 2.7 and 2.8 billion euros and consolidated net sales in the range of 2.65 to 2.75 billion euros. Our assessment is that EBIT will amount to between 195 and 205 million euros in the financial year underway. We expect that earnings before taxes will total between 180 and 190 million euros."

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, logistic systems, services and advice. Jungheinrich shares are traded on all German stock exchanges.

Interim report as of September 30, 2015.pdf
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Contact

Jungheinrich AG
Am Stadtrand 35
22047
Hamburg
Germany
  • +49 (40) 6948-0