Jungheinrich raises forecast for the 2017 financial year
First half-year: net sales +14 per cent, value of incoming orders +8 per cent and units +12 per cent / Orders on hand at the end of June: +16 per cent on the end of 2016 / Forecast raised for incoming orders and net sales, EBIT expectations at the upper end of the forecast range
Hamburg, Germany. The Jungheinrich Group is looking back on a strong first half-year for 2017. In comparison with the previous-year period, key performance indicators again point towards significant growth. As a result of the positive development, the Board of Management has raised its forecast for the current financial year with regards to incoming orders and net sales, and has substantiated its EBIT expectations at the upper end of the forecast range.
Hans-Georg Frey, Chairman of the Board of Management of Jungheinrich AG:
“We are seeing positive results at the end of the first half of 2017. The new truck business is a significant driver for this increase in net sales, growing by a strong 22 per cent. Production exceeded the previous year’s value by 12 per cent. At 57,600 units, this is a new record for Jungheinrich. Because of this positive development and the good order situation, we have raised our forecast for the 2017 financial year. Incoming orders should be between €3.45 billion and €3.55 billion. The consolidated net sales should be somewhere between €3.35 billion and €3.45 billion. EBIT for the current year will, according to our estimations, be at the upper end of the range between €250 million and €260 million. With an order range of more than four months and the current dynamic market, particularly in Europe, we are looking forward to a positive second half of the year.”
Development from January to June 2017
The world market for material handling equipment performed very well from January to June 2017, with growth of 18 per cent. Strong growth in the first quarter continued into the second quarter of 2017. The driving force behind the significant year-on-year increase in market volume was demand from the Chinese market, which soared by 41 per cent. A sharp rise in orders for IC engine-powered counterbalanced trucks was behind these positive market developments. Demand in Europe rose by 12 per cent, with Western Europe up by 9 per cent and Eastern Europe up by 27 per cent, thanks to Russia.
Global demand in the warehousing equipment product segment increased by 16 per cent, which represents almost 42 thousand forklifts. Some 40 per cent of the increase is attributable to Asia, mainly China, and around 40 per cent to Europe. The 15 per cent increase in global market volume of battery-powered counterbalanced trucks was driven by greater demand from Europe (+17 per cent) and above all by new orders from China (+34 per cent). Three quarters of the enormous increase of 21 per cent in demand for IC engine-powered trucks was due to significantly higher orders from China.
In the first half of 2017, incoming orders in new truck business, which include orders for both new forklifts and trucks for short-term hire, totalled 63.3 thousand trucks, up 12 per cent on the corresponding figure in the previous year (56.7 thousand trucks). By value, incoming orders for all business fields – new truck business, short-term hire and used equipment, and after-sales services – came to €1,750 million in the reporting period, which is 8 per cent above the previous year’s figure of €1,626 million. Orders on hand for new truck business came to €708 million as of 30 June 2017, which is €37 million or 6 per cent higher than the previous year (€671 million). 57.6 thousand trucks were produced in the first six months of the current year. This is 12 per cent more than in the first half of 2016 (51.5 thousand trucks). Consolidated net sales of €1,634 million in the first half of 2017 was 14 per cent higher than in the previous-year period (€1,431 million). Earnings before interest and taxes (EBIT) rose by 12 per cent to €123.7 million in the first half of 2017 (previous year: €110.2 million1). Earnings before taxes (EBT) were €116.6 million in the first half of 2017 (previous year: €100.6 million1). This represents an increase of 16 per cent.
Key figures at a glance
Q2 2017 | Q2 2016 | Change | H1 2017 | H1 2016 | Change | |
Incoming orders (millions €) | 881 | 871 | 1.1 | 1,750 | 1,626 | 7.6 |
Incoming orders | 32,300 | 29,200 | 10.6 | 63,300 | 56,700 | 11.6 |
Production (units) | 28,500 | 27,500 | 3.6 | 57,600 | 51,500 | 11.8 |
Net sales (millions €) | 843 | 764 | 10.3 | 1,634 | 1,431 | 14.2 |
EBIT (millions €)1) | 67.3 | 64.4 | 4.5 | 123.7 | 110.2 | 12.3 |
EBIT ROS (per cent)1) | 8.0 | 8.4 | --- | 7.6 | 7.7 | --- |
EBT (millions €)1) | 63.8 | 60.4 | 5.6 | 116.6 | 100.6 | 15.9 |
EBT ROS (per cent)1) | 7.6 | 7.9 | --- | 7.1 | 7.0 | --- |
Net income | 45.9 | 44.0 | 4.3 | 83.9 | 72.3 | 16.0 |
R&D expenditures (millions €) | n.a. | n.a. | --- | 35.5 | 29.2 | 21.6 |
Capital expenditures (millions €)2) | n.a. | n.a. | --- | 27.6 | 23.8 | 16.0 |
Employees (FTE3), 06/30) |
| 15,487 | 14,432 | 7.3 | ||
1) Comparative figures for 2016 have been adjusted in line with IFRS 3 due to the classification and valuation of customer leases as part of the final purchase price allocation for NTP Forklifts Australia (NTP) acquired in November 2015.
2) Tangible and intangible assets without capitalised development expenditure
3) FTE = full-time equivalents