18.07.2016
KION GROUP AG DE000KGX8881
DGAP-News: The KION Group remains firmly on a path of profitable growth in Q2 (news with additional features)
DGAP-News: KION GROUP AG / Key word(s): Quarter Results
The KION Group remains firmly on a path of profitable growth in Q2 (news
with additional features)
18.07.2016 / 07:01
The issuer is solely responsible for the content of this announcement.
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- KION Group publishes preliminary figures and confirms outlook for
the full year
- Order intake improves by more than 8 per cent to around EUR1.427
billion in the second quarter
- Faster growth than the world market once again: new truck orders for KION
up by 3.9 per cent in the period April to June
- Revenue increases by 7 per cent to approximately EUR1.344 billion
- EBIT[1] grows by circa 21 per cent to EUR140.8 million
- EBIT[1] margin improves significantly to 10.5 per cent
- Net income rises by almost 22 per cent
Wiesbaden, 18 July 2016 - After a very solid start to 2016, the KION Group
remains firmly on its path of profitable growth in the second quarter
according to preliminary figures. In the period from April to June, the
total value of order intake rose by 8.3 per cent year on year to reach
EUR1.427 billion. This was due, in particular, to the pace of growth in the
core market of western Europe. The order book stood at EUR1.009 billion,
which was 16.8 per cent higher than at the end of 2015. Revenue improved by
7.0 per cent to EUR1.344 billion. Earnings before interest and tax
(EBIT[1]) reached EUR140.8 million, an increase of 20.9 per cent. As a
result, the KION Group generated a significantly improved EBIT[1] margin of
10.5 per cent in the period April to June - the highest figure for a second
quarter so far.
The KION Group, one of the two leading suppliers of forklift trucks,
warehouse technology and associated services, saw its orders go up by 3.9
per cent to approximately 45,600 units in the second quarter of this year.
The Group thus again grew faster than the world market as a whole. In
western Europe, the KION Group's orders rose by 4.7 per cent in the second
quarter, another year-on-year rise. The Company's focus in its warehouse
equipment business - the segment with currently the highest growth rates -
is more on sustainable growth from higher-value equipment than on high-
volume products with little value added. In China, the world's largest
single country market, 3.9 per cent more trucks were ordered from KION
Group brands than in the corresponding period of 2015.
"The significant increase in our margin in the second quarter is a clear
signal that we are continuing to make progress on improving our
profitability," said Gordon Riske, Chief Executive Officer of the KION
Group. "Additionally, the acquisition of Dematic, which was announced in
June, will make us one of the world's leading providers of end-to-end
solutions for Intralogistics 4.0. We are therefore best positioned to
benefit from the attractive and profitable growth that is being driven by
megatrends such as Industry 4.0, digitalisation and e-commerce."
In the second quarter, demand for industrial trucks in the global market
stagnated, according to available preliminary data. In western Europe
market growth was accordingly in the low teens whereas the Chinese market
declined. During the reporting period, the strong growth trend for electric
forklift trucks and warehouse equipment continued worldwide, whereas there
was a further fall in orders for IC trucks.
Business performance of the KION Group in detail
Measured in terms of units, the KION Group's order intake for the second
quarter rose by 3.9 per cent to approximately 45,600 units. In the first
half of the year, the Group's order intake was up by 4.4 per cent to around
89,200 units. There were year-on-year increases in the value of the order
intake both in the second quarter and in the first six months overall:
order intake rose by 8.3 per cent to EUR1.427 billion in the period from
April to June and by 6.2 per cent to EUR2.724 billion in the period from
January to June. The contributions to order intake resulting from the
acquisitions of Egemin Automation and Retrotech, which totalled EUR44.4
million in the second quarter (H1 2016: EUR79.5 million), were contrasted
by negative currency effects of approximately EUR35.5 million in the same
period (H1 2016: EUR57.0 million). As at 30 June 2016, the order book stood
at EUR1.009 billion, which was 16.8 per cent higher than at the end of
2015.
At EUR1.344 billion in the second quarter, consolidated revenue clearly
exceeded the prior-year figure by 7.0 per cent. The same was true of the
six-month period, with revenue increasing by 5.9 per cent to EUR2.565
billion. Contributions to revenue resulting from the acquisitions of Egemin
Automation and Retrotech, which totalled EUR27.5 million in the second
quarter (H1 2016: EUR47.3 million), were contrasted by negative currency
effects of approximately EUR32.3million in the same period (H1 2016:
EUR53.4 million). In the new truck business, electric forklift trucks
clearly exceeded the sales level of the previous year.
Earnings before interest and tax (EBIT[1]) rose by 20.9 per cent to
EUR140.8 million in the second quarter, primarily driven by the Group's
very strong operating performance. Moreover, the figure for the prior-year
quarter had been adversely affected by an expense of around EUR6.5 million
for a payment to a former dealer in France following a court ruling. The
EBIT[1] margin increased from 9.3 per cent to 10.5 per cent in the second
quarter of 2016 and from 8.7 per cent to 9.3 per cent in the half-year
period.
Net income in the period from April to June of this year amounted to
EUR64.0 million compared with EUR52.5 million in the corresponding period
of last year. This equates to an increase of 21.9 per cent that is
primarily attributable to the highly successful operating business. The
KION Group achieved net income of EUR97.1 million in the first half of
2016, an increase of 2.9 per cent on the prior-year level (H1 2015: EUR94.3
million). In February, EUR25.7 million was spent on renewing and optimising
the KION Group's financing structure. Earnings per share came to EUR0.97
for the first half of the year (H1 2015: earnings per share of EUR0.94).
Free cash flow fell from EUR28.8 million in the second quarter of 2015 to
EUR9.9 million in the comparable period of 2016 and from EUR9.2 million in
the first half of 2015 to minus EUR10.5 million in the first six months of
this year. The positive impact of the higher level of EBIT and further
optimisation of working capital in the reporting period was reduced by the
acquisition of Retrotech Inc. and by higher tax prepayments.
The number of employees at 30 June 2016 was 23,804, which was up by 1.3 per
cent compared with the end of 2015.
KION Group announces acquisition of Dematic
The KION Group's acquisition of Dematic, a leading specialist for
automation and supply chain optimisation, will make the KION Group one of
the world's leading suppliers of intelligent intralogistics solutions. The
transaction is to be completed in the fourth quarter of 2016. The
acquisition creates a true global provider in the material handling
industry with almost 30,000 employees, revenue of more than EUR6.7 billion
in the 2015 calendar year and a strong profitability with a combined
adjusted EBIT margin of approximately 9.4 per cent in the same period.
The Company's sales and service network, technologies and resources will
enable it to seamlessly offer the full range of material handling product
and service offering to customers of all sizes in a broad range of
industries across the world. The portfolio is the most comprehensive in the
market, ranging from manually operated industrial trucks to complete fully
automated warehouses. The KION Group will thus enhance its position as one-
stop-supplier for intelligent supply chain and automation solutions.
The transaction will initially be funded by a bridge loan of EUR3.0
billion. In a first step, this loan is to be reduced by a 10 per cent
capital increase supported by Weichai Power, the KION Group's strategic
anchor investor. Weichai Power wants to at least maintain its current
shareholding of 38.25 per cent. In addition, the acquisition will be
refinanced permanently by long-term capital-market and bank debt. The KION
Group has a conservative financial policy of maintaining a strong cross-
over credit profile with reliable access to debt capital markets. Going
forward, the KION Group would therefore ask for the approval of its
shareholders to create another authorized capital of up to 10 per cent.
This authorized capital would be used in the future should the KION Group
believe it to be prudent to do so at that time.
Outlook
The KION Group fully confirms the outlook for 2016 provided in the 2015
group annual report. Any effects of the acquisition of Dematic have not
been taken into account as the transaction has not yet been completed.
Accordingly, the order intake is expected to be between EUR5.350 billion
and EUR5.500 billion. The target figure for consolidated revenue is in the
range of EUR5.200 billion to EUR5.350 billion. The targeted range for
adjusted EBIT is EUR510 million to EUR535 million. The adjusted EBIT margin
is predicted to increase above the margin of 9.5 per cent that was
generated in 2015. Free cash flow is expected to be in a range between
EUR280 million and EUR320 million after taking account of the acquisition
of Retrotech Inc.
Website: kiongroup.com/mediasite
Twitter: @kion_group
The Company
The KION Group - comprising the seven brands of Linde, STILL, Fenwick, OM
STILL, Baoli, Voltas and Egemin Automation - is the largest manufacturer of
industrial trucks in western and eastern Europe, the global number two in
the industry and the leading non-domestic supplier in China. The Linde and
STILL brands serve the premium segment worldwide. Fenwick is the largest
supplier of material handling products in France, while OM STILL is a
market leader in Italy. The Baoli brand focuses on the economy segment, and
Voltas is a leading provider of industrial trucks in India. Egemin
Automation is a leading international specialist in logistics automation.
The KION Group is present in more than 100 countries and, in 2015, employed
approximately 23,500 people and generated revenue of around EUR5.1 billion.
KION GROUP AG is listed on Deutsche Börse's Frankfurt Stock Exchange, the
MDAX (the German stock index for medium-sized companies), the STOXX Europe
600 index, which comprises the 600 largest companies in Europe, and the
FTSE EuroMid, which is made up of mid-cap European stocks.
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
Head of Corporate Communications
Tel: +49 (0)611 770 655
[email protected]
Frank Brandmaier
Head of Corporate Media Relations
Tel: +49 (0)611 770 752
[email protected]
Further information for investors
Frank Herzog
Head of Corporate Finance
Tel: +49 (0)611 770 303
[email protected]
Dr Karoline Jung-Senssfelder
Head of Investor Relations and M&A
Tel: +49 (0)611 770 450
[email protected]
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Additional features:
Document: http://n.eqs.com/c/fncls.ssp?u=JKPDEWSUKR
Document title: Download press release as PDF
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18.07.2016 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.
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Financial/Corporate News and Press Releases.
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Language: English
Company: KION GROUP AG
Abraham-Lincoln-Str. 21
65189 Wiesbaden
Germany
Phone: +49 (0)611 770-0
Fax: +49 (0)611 770-690
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; Terminbörse EUREX
End of News DGAP News Service
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483077 18.07.2016
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