26.04.2018
KION GROUP AG DE000KGX8881
DGAP-News: KION generates further profitable growth at the start of the year
DGAP-News: KION GROUP AG / Key word(s): Quarterly / Interim Statement
KION generates further profitable growth at the start of the year (news with
additional features)
26.04.2018 / 06:57
The issuer is solely responsible for the content of this announcement.
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* Value of order intake remains at a high level in first quarter of 2018,
reaching EUR1.885 billion - an increase of 4.1 percent after
normalization for negative currency effects
* Revenue rose by 2.4 percent to EUR1.843 billion; normalized for negative
currency effects, the increase was 7.0 percent
* Adjusted EBIT margin improves from 8.4 percent to 8.6 percent
* Free cash flow of EUR12.7 million
* Net income for the period increases by 73.1 percent to EUR68.4 million
* Outlook for 2018 confirmed
Frankfurt, April 26, 2018 - Despite significant negative currency effects in
the first three months of 2018, the KION Group has continued its course of
profitable growth it has established in recent years. As in the first
quarter of 2017, the value of order intake was again at a high level,
reaching EUR1.885 billion in the first quarter of 2018. Normalized for
negative currency effects of EUR74 million, order intake rose by 4.1
percent. At EUR2.626 billion, the order book was also on the high level
reported at the end of 2017 (December 31, 2017: EUR2.615 billion). Revenue
rose by 2.4 percent to EUR1.843 billion in the first three months of 2018.
Normalized for negative currency effects of EUR83 million, the revenue
increase was 7.0 percent. Adjusted earnings before interest and tax (EBIT)
climbed by 4.2 percent to EUR157.9 million. This resulted in an improvement
in the adjusted EBIT margin from 8.4 percent to 8.6 percent.
Net income increased by a substantial 73.1 percent to EUR68.4 million in the
period January to March. The reasons for this rise included lower
non-recurring items as well as the improved financing structure and the
related lower interest payments. Earnings per share for the first three
months of the year came to EUR0.58 (Q1 2017: EUR0.36). The growth-related
increase in net working capital led to free cash flow of EUR12.7 million,
compared with EUR85.1 million in the first quarter of 2017.
"We demonstrated once again in the first quarter of 2018 that the KION Group
has excellent foundations," said Gordon Riske, Chief Executive Officer of
the KION Group. "Our KION 2027 strategy, which we unveiled in March, is
focused on continuing to generate profitable growth."
In the first quarter of 2018, the global market for forklift trucks and
warehouse technology expanded at a slower rate than in the corresponding
period of 2017. Nevertheless, new truck orders were up significantly year on
year, rising by 12.0 percent to around 392,600 units. At regional level,
there was a slight normalization of growth rates in Europe and China
compared with the prior-year period. The markets in North America and South
America made a dynamic start to the year.
Segment performance in detail
In the Industrial Trucks & Services segment, order intake measured in terms
of units rose significantly year on year, increasing by 7.3 percent to
around 53,500 units - the highest figure ever for a first quarter. The value
of order intake was up by 5.0 percent to EUR1.485 billion. The biggest
driver was business with electric forklift trucks and warehouse equipment.
Revenue rose by 4.2 percent compared with the prior-year quarter to reach
EUR1.369 billion. However, negative currency effects reduced order intake by
EUR32.0 million and revenue by EUR30.1 million. Normalized for negative
currency effects, the value of order intake rose by 7.3 percent and revenue
by 6.4 percent. Adjusted EBIT came to EUR135.9 million, a year-on-year rise
of 7.0 percent. Despite increases in the cost of materials and labor costs,
the adjusted EBIT margin went up from 9.7 percent in the prior year period
to 9.9 percent in the first quarter of 2018.
At EUR396.3 million, order intake in the Supply Chain Solutions segment was
down by 14.1 percent on the prior-year figure (Q1 2017: EUR461.3 million)
due to a slow start in the project business in the first three months of the
year. This figure was also impacted by negative currency effects, amounting
to EUR42.2 million, mainly as a result of the weaker US dollar. Normalized
for negative currency effects, order intake fell by 5.0 percent on the
corresponding period of 2017. Revenue amounted to EUR470.7 million, which
was 2.3 percent less than in the prior-year period (Q1 2017: EUR481.6
million). However, currency effects decreased revenue by EUR53.1 million in
this segment. Normalized for these effects, revenue actually increased by
8.8 percent. The segment generates a major part of its revenue in US
dollars. Adjusted EBIT stood at EUR35.0 million in the period January to
March 2018, compared with EUR34.5 million a year earlier (increase of 1.4
percent). The adjusted EBIT margin thus rose from 7.2 percent in the first
quarter of last year to 7.4 percent in the reporting period.
Outlook
The KION Group confirms the outlook provided for 2018 in the 2017 combined
management report.
In 2018, the KION Group aims to build on its successful performance in 2017
and, based on the forecasts for market growth, achieve further increases in
order intake, revenue, and adjusted EBIT.
The order intake of the KION Group is expected to be between EUR8.050
billion and EUR8.550 billion. The target figure for consolidated revenue is
in the range of EUR7.700 billion to EUR8.200 billion. The target range for
adjusted EBIT is EUR770 million to EUR835 million. Free cash flow is
expected to be in a range between EUR410 million and EUR475 million; the
cash payment for the planned acquisition of a non-controlling interest in
the Chinese company EP Equipment has already been factored in. The target
figure for ROCE is in the range of 8.7 percent to 9.7 percent.
Order intake in the Industrial Trucks & Services segment is expected to be
between EUR5.950 billion and EUR6.150 billion. The target figure for revenue
is in the range of EUR5.700 billion to EUR5.900 billion. The target range
for adjusted EBIT is EUR650 million to EUR685 million.
Order intake in the Supply Chain Solutions segment is expected to be between
EUR2.100 billion and EUR2.400 billion. The target figure for revenue is in
the range of EUR2.000 billion to EUR2.300 billion. The target range for
adjusted EBIT is EUR180 million to EUR215 million.
The outlook is based on the assumption that material prices and the exchange
rate environment will hold steady as at the time the outlook was prepared.
Website: kiongroup.com/mediasite
Twitter: @kion_group
The Company
The KION Group is a global leader in industrial trucks, related services and
supply chain solutions. Across more than 100 countries worldwide, the KION
Group designs, builds and supports logistics solutions that optimize
material and information flow within factories, warehouses and distribution
centers. The Group is the largest manufacturer of industrial trucks in
Europe, the second-largest producer of forklifts globally and a leading
provider of warehouse automation.
The KION Group's world-renowned brands are clear industry leaders. Dematic,
the newest addition to the KION Group, is a global leader in automated
material handling, providing a comprehensive range of intelligent supply
chain and automation solutions. The Linde and STILL brands serve the premium
industrial truck segment. Baoli focuses on industrial trucks in the economy
segment. Among KION's regional industrial truck brand companies, Fenwick is
the largest supplier of material handling products in France, while OM STILL
is a market leader in Italy, and OM Voltas is a leading provider of
industrial trucks in India.
With an installed base of more than 1.3 million industrial trucks and over
6,000 installed systems, the KION Group's customer base includes companies
in all industries and of all sizes on six continents. The Group has more
than 32,000 employees and generated revenue of around EUR7.7 billion in
2017.
Disclaimer
This document and the information contained herein are for information
purposes only and do not constitute a prospectus or an offer to sell or a
solicitation of an offer to buy any securities in the United States or in
any other jurisdiction.
This release contains forward-looking statements that are subject to various
risks and uncertainties. Future results could differ materially from those
described in these forward-looking statements due to certain factors, e.g.
changes in business, economic and competitive conditions, regulatory
reforms, results of technical studies, foreign exchange rate fluctuations,
uncertainties in litigation or investigative proceedings, and the
availability of financing. We do not undertake any responsibility to update
the forward-looking statements in this release.
Further information for the media
Michael Hauger
Senior Vice President Corporate Communications
Tel: +49 (0)69 201 107 655
Mobile: +49 (0)151 1686 5550
[email protected]
Frank Brandmaier
Senior Director Corporate Media Relations
Tel: +49 (0)69 201 107 752
[email protected]
Further information for investors
Dr Karoline Jung-Senssfelder
Vice President, Head of Investor Relations and M&A
Tel: +49 (0)69 201 107 450
[email protected]
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Additional features:
Document: http://n.eqs.com/c/fncls.ssp?u=XPBBPXXRPC
Document title: Download Press Release as pdf
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26.04.2018 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Archive at www.dgap.de
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Language: English
Company: KION GROUP AG
Thea-Rasche-Straße 8
60549 Frankfurt/Main
Germany
Phone: +49 69 20110-0
E-mail: [email protected]
Internet: www.kiongroup.com
ISIN: DE000KGX8881
WKN: KGX888
Indices: MDAX
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover,
Munich, Stuttgart, Tradegate Exchange
End of News DGAP News Service
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679217 26.04.2018
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