KION Group starts 2012 with a record first quarter
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KION GROUP GmbH /
KION Group starts 2012 with a record first quarter
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* Order intake increases by 4.3 per cent compared with Q1 2011 to ?1.207
billion
* Revenue grows by 12.6 per cent year on year to ?1.144 billion
* Structural improvements made in recent years have consistently delivered
margin improvements: EBIT[1] margin hits new record of 8.9 per cent
* Market environment stabilising at a high level
Wiesbaden, 15 May 2012: The KION Group has started 2012 with its best-ever first
quarter. The total value of its order intake rose by 4.3 per cent on what had
already been an impressive volume in the first quarter of 2011. Revenue jumped
by a further 12.6 per cent to ?1.144 billion. The KION Group raised its earnings
before interest and tax (EBIT[1]) by more than one third to ?101 million, which
enabled it to report an EBIT[1] margin of 8.9 per cent for the first three
months of 2012.
Global demand for new trucks in the first quarter of 2012 totalled approximately
247,000 units, which was in line with the figure for the corresponding period of
2011. Demand for new trucks in Europe fell slightly by 3.8 per cent year on year
to around 86,000 units. The number of new trucks sold in western Europe in the
first three months of 2012 declined by 5.3 per cent on the corresponding period
of 2011 to just under 72,000 units owing to the weak economic conditions in
southern European countries such as Spain and Italy. At the same time the
eastern European market continued along its path of robust growth, increasing
its new truck sales by 4.7 per cent to almost 14,000 units. The American markets
grew by 3.6 per cent to 53,000 units, while demand for new trucks in the Asian
markets remained more or less unchanged year on year at approximately 98,000
units.
With the market environment stabilising at a high level, the KION Group
increased its order intake for new trucks by a disproportionately strong 6.9 per
cent to 39,100 units (Q1 2011: 36,600 trucks), thereby expanding its global
market share to almost 16 per cent. The total value of its order intake came to
?1.207 billion in the first quarter of 2012, which was an improvement of 4.3 per
cent on the corresponding period of 2011 (?1.157 billion). The KION Group raised
its order backlog modestly on the level of 31 December 2011 to approximately ?1
billion as at 31 March 2012.
Revenue advanced by 12.6 per cent year on year to ?1.144 billion (Q1 2011:
?1.016 billion). Revenue from business in new trucks grew by just under 16 per
cent compared with the first three months of 2011. KION achieved an increase of
8 per cent in its service business, which comprises aftersales business as well
as services relating to used and rental trucks. Service business continued to
generate more than 40 per cent of total revenue.
The KION Group's earnings before interest and tax (EBIT[1]) - adjusted for non-
recurring items - jumped by 35.9 per cent from ?75 million in the first quarter
of 2011 to ?101 million in the first three months of 2012. The EBIT[1] margin of
8.9 per cent was the highest ever achieved in a first quarter, even exceeding
the margin of 8.7 per cent attained in the strong fourth quarter of 2011. The
EBIT[1] margin in the first three months of 2011 was 7.3 per cent.
Cash flow from operating activities in the first quarter of 2012 amounted to a
net cash outflow of ?46 million (Q1 2011: net cash inflow of ?66 million). This
was largely attributable to a temporary increase in working capital in
connection with the KION Group's revenue growth. The net cash used for investing
activities (including acquisitions) amounted to ?28 million in the first quarter
of 2012 (Q1 2011: ?20 million). Consequently, free cash flow came to minus ?74
million (Q1 2011: plus ?46 million).
Total research and development spending rose by more than 13 per cent to ?31
million, which equates to almost 5 per cent of revenue from new business in
trucks and hydraulics.
The number of employees (including apprentices and trainees) rose by 9.4 per
cent to 22,052 as at 31 March 2012 (31 March 2011: 20,154 people). This figure
includes more than 600 employees resulting from first-time consolidations.
Sales and service in South Asia and the United Kingdom
The KION Group is continually expanding its product range and its presence in
the emerging markets. The growing strength of the Asian economies and the
resultant demand for intralogistics solutions provide the KION brand companies
Linde, STILL and Baoli with an opportunity to step up their sales in these
markets. KION is establishing a new Singapore-based entity - KION South Asia -
in order to further expand its sales and service offering in South Asia and
Southeast Asia. Operating as part of KION Asia, KION South Asia will support the
Linde, STILL and Baoli brands.
The KION Group is also selectively expanding its sales and service network in
its home European markets. Linde Material Handling (UK) acquired all the
remaining shares in UK-based dealer Linde Creighton Ltd. in February 2012.
Creighton employs around 300 people at its head office in West Bromwich. Linde
Material Handling (UK) had already purchased the outstanding shares in Linde
Sterling Ltd. and Linde Castle Ltd. in 2011. Linde Material Handling (UK)'s
dealers in the United Kingdom are therefore now all wholly owned subsidiaries.
KION is also making headway with the consolidation of its European production
plants. The manufacturing of counterbalance trucks for the STILL and OM STILL
brands was relocated from Bari (Italy) to Hamburg (Germany) in the first quarter
of 2012, while production of warehouse trucks will be transferred from
Montataire (France) to Luzzara (Italy) in the second half of this year.
Outlook: further improvement in margins in a market stable at high level
The KION Group got off to a highly encouraging start to the year in the first
quarter of 2012. Provided that no severe global economic events have an adverse
impact on either the industrial-truck markets or the Company itself during the
remainder of 2012, the KION Group expects unchanged to generate modest year-on-
year revenue growth. The measures that it has started to put in place -
especially those aimed at optimising structures - and the raising capacity
utilisation at its production plants should also further strengthen its full-
year profitability compared with 2011.
In 2012 the global market for industrial trucks is likely to stabilise at last
year's high level. The sovereign debt crisis in public finances continues to
pose a risk to global macroeconomic trends and has had a visible impact on the
real economy in recent months, especially in western European countries such as
Spain and Italy. Some of the emerging economies are currently experiencing
weaker growth as well.
The market for industrial trucks, which form the backbone of the global
logistics industry, will retain its appeal over the long term. By expanding its
business in emerging markets and maintaining its extensive sales and service
network in its home European markets, the KION Group is excellently placed to
benefit from future market growth; and by optimising the structure of its
production facilities in Europe, it is laying the foundations underpinning the
long-term competitiveness of its trucks.
[1] EBIT and EBITDA adjusted for KION acquisition items and non-recurring items
[2] This figure includes a year-on-year increase of more than 600 employees
resulting from first-time consolidations
The Company
The KION Group - comprising the six brands Linde, STILL, Fenwick, OM STILL,
Baoli and Voltas - is Europe's market leader in industrial trucks, the global
number two in the industry and the leading international 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 one of the two market leaders in India. The KION Group employed
roughly 22,000 people and generated revenue of around ?4.4 billion in 2011.
Disclaimer
This press release contains forward-looking statements involving known and
unknown risks, uncertainties and other factors, many of which are outside the
control of the KION Group ('KION'), are difficult to predict and may cause
future developments to differ significantly from assumed developments as
expressed or implied in the forward-looking statements in this press release.
Any liability (including in respect of direct, indirect or consequential loss or
damage) of any member of KION with a view to the information contained in this
press release is expressly disclaimed. This press release does not purport to
contain all of the information that may be required to evaluate any proposed
transaction, and any recipient hereof should seek its own legal, accounting and
other relevant professional advice.
No member of KION undertakes any obligation or expects to update or revise this
press release, including forward-looking statements or any other information
contained herein, whether as a result of new information, future events or
otherwise.
For further information please contact
Michael Hauger
Head of Corporate Communications
Tel.: +49 (0)611 770 655
Email: michael.hauger(at)kiongroup.com
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Source: KION GROUP GmbH via Thomson Reuters ONE
[HUG#1612244]
Unternehmensinformation / Kurzprofil:
Datum: 15.05.2012 - 11:13 Uhr
Sprache: Deutsch
News-ID 146409
Anzahl Zeichen: 11120
contact information:
Town:
Wiesbaden
Kategorie:
Business News
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