Airport Towing Trucks For Material Handling

World Material Handling Equipment Market Grows by 10 Per Cent/Further Rise in Incoming Orders and Net Sales/Forecast for 2014 Confirmed

Hamburg—In the second quarter of 2014, the Jungheinrich Group picked up where its positive development left off at the beginning of the financial year underway. In the first half of 2014, the value of incoming orders rose by 7 per cent, with net sales advancing by 9 per cent. Net income after the first six months was 13 per cent higher year on year. Production in terms of units climbed by 22 per cent during the same period. Proof of the good order situation is provided by the 20 per cent increase in orders on hand since the end of December 2013. The Board of Management confirms its forecast for the current fiscal year.

In the first half of 2014, the global material handling equipment market expanded in volume by 10 per cent to 556.8 thousand forklifts (prior year: 507.8 thousand trucks). Europe, Jungheinrich's main sales market, also recorded an increase of 10 per cent. Demand in Western Europe rose by 12 per cent, with Eastern Europe's market volume growing slightly, increasing by 1 per cent. The Asian and North American markets continued to develop positively: Demand in Asia was up 15 per cent, with the North American market achieving a gain of 8 per cent.

In the second quarter of 2014, the value of the Jungheinrich Group's incoming orders, encompassing all business fields, was 646 million euros—up 11 per cent compared to last year’s corresponding figure (582 million euros). In the first half of 2014, incoming orders rose by 7 per cent to 1,246 million euros compared to the figure recorded in the same period last year (1,169 million euros). As of June 30, 2014, orders on hand from new truck business totalled 441 million euros and were thus 75 million euros, or 20 per cent, higher than at the end of 2013. The range of orders remained at four months.

Consolidated net sales in the second quarter of 2014 amounted to 602 million euros—7 per cent up on the figure achieved in last year's corresponding period (564 million euros). Cumulatively, consolidated net sales were up 9 per cent to 1,177 million euros in the first half of the year (prior year: 1,078 million euros). In Germany, net sales in the first six months of 2014 advanced by 6 per cent to 306 million euros (prior year: 289 million euros). Foreign net sales climbed by 10 per cent to 871 million euros (prior year: 789 million euros). Non-European net sales posted an especially significant increase, jumping by 33 per cent buoyed by strong growth in Asia.

The marked rise in consolidated net sales was primarily driven by the clearly disproportionate increase in net sales from new truck business. Net sales generated with short-term hire and used equipment as well as after-sales services also developed positively. In the first half of 2014, the Jungheinrich Group grew net sales from new truck business by 14 per cent to 627 million euros (prior year: 551 million euros). Overall, the short-term hire and used equipment business posted a rise of 7 per cent to 208 million euros (prior year: 195 million euros). Net sales achieved with after-sales services advanced by 4 per cent to 356 million euros (prior year: 343 million euros). Financial services recorded a 7 per cent gain in net sales to 283 million euros (prior year: 265 million euros).

In the second quarter, the Jungheinrich Group generated EBIT of 46.4 million euros (prior year: 46.1 million euros). The costs incurred for the sector's lead trade show CeMAT in May 2014 came to bear here. Cumulatively, EBIT was up 5 per cent to 86.6 million euros in the first half of 2014 (prior year: 82.1 million euros). At the half-year mark, the corresponding return on sales was 7.4 per cent (prior year: 7.6 per cent). Net income in the first quarter of 2014 totalled 30.2 million euros—up 10 per cent year on the figure of last year's corresponding period (27.4  million euros) and climbed by a cumulative 13 per cent to 55.9 million euros in the first half of 2014 (prior year: 49.3 million euros). Accordingly, earnings per preferred share amounted to 1.68 euros in the first half of 2014 (prior year: 1.48 euros).

The Jungheinrich Group's balance sheet total had risen by 37 million euros to 2,788 million euros by June 30, 2014 (December 31, 2013: 2,751 million euros). At 30.3 per cent, the equity ratio was flat (December 31, 2013: 30.2 per cent). Intangible and tangible assets were up 16 million euros to 434 million euros. The acquisition of a property for the branch office in Singapore and progress made in the construction of the new corporate headquarters in Hamburg and the training centre at the Norderstedt factory came to bear in particular.

Jungheinrich further expanded its sales presence in the first half of 2014—above all in Europe. Manpower across the Group grew by 346 to 12,186 employees (December 31, 2013: 11,840 staff members) of which 6,688 worked outside Germany (December 31, 2013; 6,484) and 5,498 were active in Germany (prior year: 5,356). As of June 30, 2014, Jungheinrich had 2,486 individuals on its payroll in the Hamburg metropolitan region (December 31, 2013: 2,466 employees).

Jungheinrich expects the world economy to continue recovering over the remaining course of the year and the Eurozone to post a much more positive development than a year before. Against this backdrop, the company anticipates that the global material handling equipment market will post another increase in terms of volume for the full year. From a current perspective, with Western Europe as the growth driver, Europe’s market volume should also continue displaying positive development, albeit with less momentum than has been the case thus far. It remains to be seen how the economy's development is affected as the crisis in Ukraine continues to unfold. The Asian market is likely to continue growing as well. This also holds true for North America, albeit with slightly waning momentum.

Says Hans-Georg Frey, Chairman of the Board of Management of Jungheinrich AG: "In light of the current economic and market outlooks and the development of business in the first half of 2014 and based on the continued increase in orders on hand, we confirm our forecasts for incoming orders, consolidated net sales and EBIT in the year underway. Incoming orders and Group net sales should be within a range of 2.4 billion to 2.5 billion euros. EBIT should amount to between 175 million euros and 185 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, logistics systems, services and advice. Jungheinrich shares are traded on all German stock exchanges.