DGAP-News: KION Group starts 2013 with solid performance (with additional features)
(firmenpresse) - DGAP-News: KION GROUP GmbH / Key word(s): Quarter Results
KION Group starts 2013 with solid performance (with additional
features)
28.05.2013 / 11:17
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- Earnings up once again: EBIT[1] margin rises to 8.5 per cent in the first
quarter of 2013
- Order intake reaches EUR1.145 billion, just short of the record level
achieved in the first quarter of 2012
- Revenue stabilises at a high level of around EUR1.085 billion
- Strong service business contributes more than 40 per cent of revenue
- Strategic partnership with Weichai Power strengthens position in Asia
Wiesbaden, 28 May 2013 - Robust start to the new year for the KION Group,
the world's biggest specialist manufacturer of material handling equipment
by revenue, building on the record results achieved in 2012.
Consolidated revenue totalled EUR1.085 billion in the first quarter of
2013, just short of the record figure of EUR1.096 billion achieved in Q1
2012 (adjusted for the hived-off hydraulics business). Adjusted EBIT[1]
increased by 2.7 per cent[2] to EUR92.8 million. At 8.5 per cent, the
adjusted EBIT[1] margin exceeded the previous record for the first quarter
of a year, set in 2012, by 0.3 percentage points.
'This continuous improvement is being driven above all by our enhanced
production structures, our cost discipline and the high-margin service
business of our brand companies that we are continually expanding,'
commented Gordon Riske, CEO of the KION Group. In the first quarter of
2013, customer services, the used trucks business and financial services
together contributed more than 40 per cent of revenue. 'We are an
industrial equipment company with an integrated service business,'
emphasised Riske.
Business performance in detail
With an order intake of 38,000 units in the first quarter of 2013, the KION
Group retained its global market share of more than 15 per cent. The
emerging markets accounted for 33 per cent of new truck orders, an increase
of 4 percentage points on the same period of 2012. In monetary terms, order
intake for the first quarter of the year (EUR1.145 billion) almost matched
the high level achieved in the same period of 2012[2]. The order book stood
at more than EUR830 million at 31 March 2013.
The overall market also maintained its high level. Global demand for
material handling products increased on the back of a modest economic
recovery, rising by 0.5 per cent in the first quarter of 2013 to almost
248,000 units. Almost one in four trucks was destined for the Chinese
market.
Consolidated revenue totalled EUR1.085 billion in the first quarter,
representing a slight year-on-year decline of 1.0 per cent (Q1 2012:
EUR1.096 billion[2]). The new trucks business experienced a small
year-on-year contraction of 2.0 per cent in revenue. The KION Group
increased its service business by around 0.4 per cent to EUR473.7 million.
Earnings before interest and tax, adjusted for non-recurring items
(EBIT[1]) rose from EUR90.3 million[2] in the first quarter of 2012 to
EUR92.8 million, an increase of 2.7 per cent. The EBIT[1] margin rose to
8.5 per cent, the highest ever figure recorded in the first quarter of a
year[2]. This was achieved through structural improvements, strong revenues
and cost discipline.
Net income increased to EUR28.6 million in the first quarter of 2013, up
from EUR16.5 million in the same period of 2012 (including the hydraulics
business).
The KION Group increased its cash flow from operating activities from minus
EUR45.8 million (including the hydraulics business) in the first quarter of
2012 to plus EUR19.3 million. The net cash used for investing activities
(including acquisitions) amounted to EUR23.9 million (Q1 2012: EUR27.9
million), which meant that free cash flow improved significantly from minus
EUR73.7 to minus EUR4.7 million.
Total spending on research and development (R&D) came to EUR28.0 million,
which equates to 2.6 per cent of revenue.
Net financial debt at the level of KION Holding 1 GmbH increased by just
1.9 per cent from 31 December 2012 to a total of EUR1,824.4 million at 31
March 2013. The proceeds of EUR649.0 million from the issue of a new bond
in February 2013 were used to repay bank loans of EUR636.0 million.
The number of employees (including apprentices/trainees) increased by 1.0
per cent from 21,215 at 31 December 2012 to 21,421 at 31 March 2013.
Strategic measures in the first quarter of 2013
As orders of new trucks from the emerging markets have already reached 33
per cent of KION Groups overall new truck orders, the company is continuing
its policy of expansion in these high-growth regions. At the outset of the
partnership with Weichai Power Co., Ltd. the two companies identified
various areas that offered additional potential for market growth. The
first projects, aimed at further strengthening the KION Group's position as
the leading non-domestic supplier in China, are already being implemented.
For example, Baoli IC trucks are already being fitted with engines from
Weichai Power.
The KION Group issued a further EUR650 million of corporate bonds in
February 2013 in order to improve the maturity profile of its financial
liabilities and to broaden its investor base. Some maturities now extend as
far as 2020.
Following the start of production at the newly constructed plant in
Indaiatuba/São Paulo, Brazil, the transfer of product lines from Rio de
Janeiro has now been completed. KION South America officially inaugurated
the combined warehouse technology and IC truck plant in March. The
multi-brand collaboration and bundling of production in São Paulo is
enabling the KION Group to leverage synergies and to react even more
flexibly to customer requirements in the region.
In order to enhance the competitiveness of its heavy trucks business the
KION Group has concluded a cooperation agreement with Konecranes in the
area of container handlers. Konecranes is to become a long-term supplier of
container handlers for the global distribution network of the KION Group
subsidiary Linde Material Handling. Konecranes is also acquiring selected
product rights to Linde container handlers and shifting production to its
own plants. Both companies continue to offer a comprehensive range of
container handlers including reach stackers and full/empty container
handlers. By the end of October 2013, a large part of Linde Material
Handling's global production of heavy trucks will have been outsourced to a
contract production facility in the Czech Republic. The plant in Merthyr
Tydfil (Wales, UK) is to be closed.
The Management Boards of the Linde and STILL brand companies have assumed
greater responsibility at overall Group level since January 2013. The Chief
Executive Officer of Linde Material Handling GmbH, Theodor Maurer, and the
Chief Executive Officer of STILL GmbH, Bert-Jan Knoef, have been appointed
to the Executive Board of KION Group in addition to their duties as CEO of
their respective brand company.
Ching Pong Quek has also been appointed to the Executive Board in the newly
created position of Chief Asia Pacific Officer. Ching Pong Quek has been
the CEO of Linde (China) Forklift Truck Corp., Ltd. since 2006 and has also
headed up the entire Asian business of the KION Group as President&CEO
since 2008. The Group has created the new Executive Board function in
recognition of the ever increasing commercial importance of Asia.
Outlook
The KION Group reaffirms the forecast it provided in the press release
dated 21 March 2013.
[1] EBIT adjusted for KION acquisition items and non-recurring items
[2] On a like-for-like basis; comparative 2012 figures adjusted for the
hived-off hydraulics business
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 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 one of the two market leaders in India. The
KION Group employed more than 21,000 people and generated revenue of
EUR4.73 billion in 2012.
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 regard 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
KION Group
Tel.: +49 (0) 611.770-655
michael.hauger(at)kiongroup.com
Frank Brandmaier
Head of Corporate Media Relations
KION Group
Tel.: +49 (0) 611.770-752
frank.brandmaier(at)kiongroup.com
End of Corporate News
+++++
Additional features:
Document: http://n.equitystory.com/c/fncls.ssp?u=NDFHVBYBTJ
Document title: Download Press Release [PDF 0.1 MB]
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28.05.2013 Dissemination of a Corporate News, transmitted by DGAP - a
company of EquityStory AG.
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Language: English
Company: KION GROUP GmbH
Abraham-Lincoln-Str. 21
65189 Wiesbaden
Germany
Phone: +49 (0)611 770-0
Fax: +49 (0)611 770-690
E-mail: info(at)kiongroup.com
Internet: www.kiongroup.com
End of News DGAP News-Service
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