KION Group starts 2011 with a strong first quarter
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KION GROUP GmbH /
KION Group starts 2011 with a strong first quarter
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* Order intake rises to around ?1.2 billion, up 37 per cent compared to Q1
2010
* Revenue increases by 38 per cent to over ?1.0 billion
* Adjusted EBITDA[1] more than doubles to ?149 million
* Adjusted EBIT[1] margin has risen steadily since Q2 2010
* to reach 7.3 per cent in Q1 2011
Wiesbaden, 8 June 2011 - The KION Group, one of the two leading global
manufacturers of forklift trucks and warehouse equipment, has started 2011 with
a strong first quarter. The Company has benefited from the fast-growing demand
for material handling products and services, recording significant gains in
revenue and earnings compared to the first quarter of 2010.
Having begun to rally in 2010, the global market for industrial trucks continued
its recovery in the first quarter of 2011. Demand was up approximately 40 per
cent on the first quarter of 2010, reaching almost 250,000 units - a record high
for the first quarter of a calendar year. Besides the industrialised markets of
Western Europe and North America, this trend was again driven by the high-growth
markets of Asia, Eastern Europe and South America, which continued to see strong
growth in demand for material handling solutions. Demand in China was 41 per
cent higher than it had been in the first quarter of 2010 and amounted to
64,000 units in the first quarter of 2011 - this equates to more than a quarter
of global demand and sets a new quarter record. Western Europe remained the
largest individual market for material handling products in the first quarter of
2011 with demand totalling 76,000 units.
In these favourable market conditions, the KION Group's order intake rose to
?1.157 billion in the first quarter of 2011, representing a year-on-year
increase of 36.9 per cent (Q1 2010: ?846 million). The KION Group's order
backlog had grown to more than ?900 million by 31 March 2011. Order intake for
new trucks climbed by 36 per cent, from 26,900 units to 36,600 units.
Total consolidated revenue increased to ?1.016 billion, a rise of 37.8 per cent
year on year (Q1 2010: ?738 million). Revenue from new trucks grew by more than
60 per cent, in particular due to greater demand for higher priced
counterbalance trucks. There was also significant growth in hydraulics and
service revenue, which recorded rises of over 38 per cent and over 15 per cent
respectively. In the first quarter of 2011, 41 per cent of revenue was generated
from the service business, which encompasses aftersales and services in
connection with rental business and pre-owned trucks.
The KION Group's earnings before interest, tax, depreciation and amortisation
(EBITDA[1]), adjusted for one-off items, more than doubled year on year, rising
from ?73 million in the first quarter of 2010 to ?149 million in the first
quarter of 2011. The EBITDA[1] margin therefore improved from 9.9 per cent to
14.6 per cent. Over the last four quarters, the EBIT[1] margin has also risen
steadily, reaching 7.3 per cent in the first quarter of 2011. This increase is
attributable to the volume increase, strict discipline in terms of fixed costs
and the steps taken during the two years of crisis to boost efficiency.
At ?66 million, cash flow from operating activities was also significantly
higher than it had been a year earlier (Q1 2010: ?1 million). Despite the far
higher volume of business, working capital rose at a lower rate than revenue.
The cash flow from investing activities amounted to a net outflow of ?20 million
(Q1 2010: ?23 million); free cash flow therefore totalled ?46 million (Q1 2010:
minus ?22 million).
The number of employees (including apprentices and trainees) was 20,154 as at
31 March 2011 - a small year-on-year increase of 2 per cent (31 March
2010: 19,733 employees).
In March 2011, KION announced that it was establishing a joint venture with
Voltas Limited in India for the development, production, sales and service of
forklift trucks and warehouse equipment. The joint venture is called Voltas
Material Handling Private Limited. KION has acquired a majority share of the
joint venture using existing funds and did not need to take out any additional
loans. The joint venture was established in the second quarter of 2011.
KION is expanding its production capacities in Brazil by setting up a plant in
São Paulo geared to the manufacture of IC trucks. This will enhance the
company's ability to satisfy local customer demand. Production in São Paulo is
scheduled to start in early 2012. The existing Brazilian plant in Rio de Janeiro
manufactures warehouse equipment for KION's STILL and Linde brands.
In April 2011, KION issued a secured corporate bond with a total volume of ?500
million in the capital markets. This has enabled the KION Group to improve the
maturity profile of its debt, with some financial liabilities being extended to
2018. The proceeds from the issuance of the bond enabled the company to pay back
pro rata some of its existing loans.
Having made an excellent start to 2011, KION expects its positive performance to
continue throughout the year, provided that market conditions remain favourable.
Although revenue will be lower than the record level achieved in 2008, the
EBIT[1] margin could almost reach its historic high again.
KION Group - Q1 2011
Since 1 January 2011, KION has aggregated its STILL and OM brands in the
STILL/OM segment.
? million Q1 2011 Q1 2010 Change
Order intake 1,157 846 + 37%
Revenue 1,016 738 + 38%
of which
Linde Material Handling 661 465 + 42%
STILL/OM 400 301 + 33%
EBITDA[1] 149 73 > 100%
EBITDA[1] margin 14,6% 9,9% + 4,7 percentage points
EBIT[1] 75 (-6) > 100%
EBIT[1] margin 7,3 % (-0,9%) + 8,2 percentage points
Cash flow from operating activities 66 1 > 100%
Free cash flow 46 -22 > 100%
Employees 20.154 19.733 + 2%
(FTE, including apprentices/trainees)
[1]Adjusted for one-off items prior to purchase price allocation (PPA),
including net investment income
The Company
The KION Group - comprising the six brands, Linde, STILL, Fenwick, OM, Baoli and
Voltas - is Europe's market leader for industrial trucks, the global number two
in the industry and the leading international supplier in China. In 2010, the
KION Group employed around 20,000 people and generated revenue of more than ?3.5
billion.
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 Communications and Investor Relations
Tel.: +49 (0)611 770 655
Email: michael.hauger(at)kiongroup.com
Frank Kopfinger
Head of Investor Relations
Tel.: +49 (0)611 770 220
Email: frank.kopfinger(at)kiongroup.com
--- End of Message ---
KION GROUP GmbH
Abraham-Lincoln-Strasse 21 Wiesbaden Germany
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Source: KION GROUP GmbH via Thomson Reuters ONE
[HUG#1521834]
Unternehmensinformation / Kurzprofil:
Datum: 08.06.2011 - 07:00 Uhr
Sprache: Deutsch
News-ID 55388
Anzahl Zeichen: 10126
contact information:
Town:
Wiesbaden
Kategorie:
Business News
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