26.07.2018
KION GROUP AG DE000KGX8881
DGAP-News: KION Group confirms positive trend with a sharp rise in orders
DGAP-News: KION GROUP AG / Key word(s): Quarterly / Interim
Statement/Interim Report
KION Group confirms positive trend with a sharp rise in orders (news with
additional features)
26.07.2018 / 07:01
The issuer is solely responsible for the content of this announcement.
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KION Group confirms positive trend with a sharp rise in orders
- Sustained high demand in fast-growing core markets
- Supply Chain Solutions attracts record level of new orders worth EUR874.2
million in the second quarter
- Total value of order intake for the Group rises by 23 percent to EUR2.424
billion; with EUR3.060 billion, order book up significantly on December 31,
2017
- Revenue increases by 1.5 percent to EUR2.031 billion
- Adjusted EBIT margin stands at 9.2 percent
- Net income for the period of EUR79.3 million
- Significant negative foreign exchange effect among others from US dollar
- Outlook for 2018 confirmed
Frankfurt/Main, July 26, 2018 - The KION Group benefited from sustained
strong growth in the markets for industrial trucks and supply chain
solutions in the second quarter of 2018. The Group's order intake rose by a
substantial 23 percent to EUR2.424 billion, one of the main contributors
being its project business for automated systems. At EUR3.060 billion, the
order book was up significantly compared with December 31, 2017 (EUR2.614
billion). Revenue rose by 1.5 percent to EUR2.031 billion in the second
quarter. The share of consolidated revenue attributable to the service
business increased from 39.2 percent to 41.6 percent.
Adjusted EBIT came to EUR187.0 million, which was below the figure for the
prior-year period of EUR210.4 million. This KPI was affected by wage cost
increases, higher prices for materials, production inefficiencies caused by
bottlenecks at individual suppliers, and negative currency effects. The
adjusted EBIT margin thus declined to 9.2 percent (Q2 2017: 10.5 percent).
Second-quarter net income amounted to EUR79.3 million, a 24.6 percent fall
compared with the second quarter of 2017.
Over the first six months of 2018, KION increased its order intake by 11.9
percent to EUR4.309 billion (foreign exchange effect: - EUR159.8 million).
Revenue rose by 1.9 percent to EUR3.874 billion (foreign exchange effect: -
EUR151.2 million). Adjusted EBIT came to EUR344.9 million, which was 4.7
percent lower than the figure for the prior-year period (foreign exchange
effect: - EUR14.3 million). The adjusted EBIT margin was 8.9 percent (H1
2017: 9.5 percent). Net income rose by 2.1 percent to EUR147.7 million.
Earnings per share for the first half of 2018 therefore stood at EUR1.26 (H1
2017: EUR1.30). Free cash flow came to EUR9.0 million in the first six
months due to a temporary rise in inventories (H1 2017: EUR143.0 million).
"Our record order intake in the second quarter confirms our excellent
positioning in fast-growing core markets. The growth drivers remain intact
both for industrial trucks and in the supply chain solutions market,
ensuring sustained high demand," said Gordon Riske, Chief Executive Officer
of the KION Group. "By appointing Susanna Schneeberger as our Chief Digital
Officer with effect from October 1, 2018 and launching our Digital Campus,
we are putting great emphasis on aligning our business with the areas that
will dominate the future of our industry. At the same time, we are
continuing to invest heavily in strategic projects and technologies in the
fields of mobile automation, robotics, and new digital solutions that enable
the connectivity of industrial trucks. We want to continue offering our
customers the best solutions in our industry."
The global market for industrial trucks experienced strong growth across all
regions, with the number of new trucks ordered rising by 15.4 percent in the
first half of 2018. As before, the rapid expansion of the e-commerce sector
and the increasing use of Industry 4.0 technologies are shaping the market
for warehouse systems and automation solutions. Many companies continue to
expand and optimize their warehouse capacities and invest into automated
warehouse systems.
Segment performance in detail
Orders in the Industrial Trucks & Services segment (forklift trucks,
warehouse technology, and related services) increased to around 57,000 units
in the second quarter, while the total value of order intake rose by 2.2
percent to EUR1.546 billion. Over the first six months, order intake grew at
a rate of 3.5 percent to reach EUR3.032 billion. Revenue rose by 3.7 percent
to EUR1.450 billion in the second quarter and amounted to EUR2.818 billion
in the first half of 2018. Adjusted EBIT for the second quarter of 2018
amounted to EUR148.2 million, a year-on-year drop of 7.0 percent. This was
due to wage cost rises, higher material prices, and inefficiencies resulting
from bottlenecks at individual suppliers. The EBIT margin was 10.2 percent
(Q2 2017: 11.4 percent). For the first six months of 2018, adjusted EBIT
came to EUR284.2 million, which almost matched the figure for the first half
of 2017 of EUR286.4 million. The adjusted EBIT margin stood at 10.1 percent
(H1 2017: 10.6 percent).
The value of order intake in the Supply Chain Solutions segment increased
sharply in the second quarter of 2018, rising by 93.3 percent to EUR874
million. In the first half of the year, order intake thus grew by 39.0
percent to EUR1.270 billion. Excluding significant adverse currency effects
amounting to EUR38.7 million, second-quarter revenue rose by 3.0 percent.
Taking these currency effects into account, however, revenue fell by 3.5
percent to EUR578.8 million. Revenue for the first six months amounted to
EUR1.049 billion. This equates to a decrease of 3.0 percent. Normalized for
currency effects, revenue was up by 5.5 percent compared with the first half
of 2017. In the second quarter, adjusted EBIT decreased by 19.7 percent year
on year to EUR51.5 million. This was due, in particular, to the negative
impact of the US dollar exchange rate as well as underutilization of
project-related personnel capacity resulting from delays in the awarding of
projects by customers during recent quarters. The adjusted EBIT margin stood
at 8.9 percent. In the first six months, adjusted EBIT amounted to EUR86.5
million, resulting in a margin of 8.2 percent (H1 2017: 9.1 percent).
Excluding foreign exchange effects of - EUR12.5 million it matched the
figure for the first half of 2017.
Outlook
Despite temporary bottlenecks at individual suppliers and the related
production inefficiencies in the Industrial Trucks & Services segment, the
KION Group expects to achieve the outlook for the year as published in the
2017 combined management report. In 2018, the KION Group aims to build on
its successful performance in 2017 and, based on the outlook 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
million and EUR8,550 million. The target figure for consolidated revenue is
in the range of EUR7,700 million to EUR8,200 million. 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
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 million and EUR6,150 million. The target figure for revenue
is in the range of EUR5,700 million to EUR5,900 million. 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 million and EUR2,400 million. The target figure for revenue is in
the range of EUR2,000 million to EUR2,300 million. 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 remain broadly the same as at the time the outlook was
prepared.
Actual business performance may deviate from the outlook due, among other
factors, to the opportunities and risks described in the 2017 combined
management report. Performance particularly depends on macroeconomic and
industry-specific conditions and may be negatively affected by increasing
uncertainty or a worsening of the economic and political situation.
KION Group key performance indicators for the second quarter and for the
first half-year, which ended June 30, 2018
EUR million Q2 2018 Q2 Differ- H1 2018 H1 Diffe-
2017* ence 2017* rence
Order intake 2,424.0 1,970.5 23.0% 4,309.0 3,852.3 11.9%
Revenue 2,031.1 2,001.3 1.5% 3,874.4 3,802.3 1.9%
Order book[1] 3,060.2 2,614.6 17.0%
EBITDA[2] EBITDA[2] 377.0 387.7 -2.8% 717.8 709.8 1.1%
margin 18.6% 19.4% 18.5% 18.7%
EBIT[2] EBIT[2] 187.0 210.4 -11.2% 344.9 362.0 -4.7%
margin 9.2% 10.5% 8.9% 9.5%
Net income for the 79.3 105.2 -24.6% 147.7 144.7 2.1%
period
Free cash flow[3] -3.7 57.9 <-100% 9.0 143.0 -93.7-
%
Employees[4] (FTEs, 32,309 31,608 2.2%
incl.
apprentices/trainees)
[1] Figure as at June 30, 2018 compared with December 31, 2017.
[2] EBIT and EBITDA adjusted for purchase price allocation items and
non-recurring items.
[3] Free cash flow is defined as cash flow from operating activities plus
cash flow from investing activities
[4] Number of employees stated in full-time equivalents as at June 30, 2018
compared with December 31, 2017.
* Key figures for 2017 have been adjusted because of the first-time adoption
of IFRS 15 and IFRS 16.
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 EUR7.6 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]
Henrik Hannemann
Senior Director Media Relations & External Communications
Tel: +49 (0)69.2 01 10-77 52
Mobile +49 (0)151 15 88 90 36
[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=ITPMQONPSI
Document title: Download pdf Press Release Q2 2018 KION
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26.07.2018 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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707873 26.07.2018
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