- Jungheinrich records strong second quarter
- EBIT and net income grow by over 20 per cent in Q2
- Net sales climb 10 per cent in H1
- Forecast for incoming orders, net sales, EBIT and EBT lifted
- Acquisition of MIAS Group strengthens logistics systems business
The Jungheinrich Group expanded significantly in the second quarter of 2015. Consolidated net sales advanced by 13 per cent (H1 2015: up 10 per cent) while the value of incoming orders increased by 9 per cent (H1 2015: up 10 per cent). Earnings before interest and taxes (EBIT) and net income were both 21 per cent higher in the second quarter than in last year's corresponding period. In the first six months of 2015, EBIT and net income rose by 14 and 15 per cent, respectively. In view of the positive development, the Board of Management raised its forecast for the current fiscal year in terms of incoming orders, net sales, EBIT and EBT.
Market
In the first half of 2015, global demand for material handling equipment advanced by 3 per cent to 574.1 thousand forklifts (prior year: 556.8 thousand trucks). Europe, Jungheinrich's main sales market, recorded 9 per cent growth. Demand in Western Europe climbed by 13 per cent, whereas market volume in Eastern Europe declined by 14 per cent owing to the marked shrinkage of the Russian market. Excluding Russia, the Eastern European market posted 8 per cent growth. Asia's market contracted by 3 per cent primarily due to the drop in demand for IC engine-powered counterbalanced trucks in China. Excluding China, Asia's market grew 8 per cent. Demand in North America increased by 11 per cent.
Incoming orders
The value of the Jungheinrich Group's incoming orders, encompassing all business fields, was up 9 per cent to 703 million euros in the second quarter of 2015 (prior year: 646 million euros). In the first half of 2015, incoming orders rose by 10 per cent to 1,369 million euros compared to the figure recorded in the same period last year (1,246 million euros). As of June 30, 2015, orders on hand from new truck business totalled 471 million euros and were thus 92 million euros, or 24 per cent, higher than at the end of 2014. The order reach remained four months.
Net sales
In the second quarter of 2015, consolidated net sales were up 78 million euros, or 13 per cent, to 680 million euros (prior year: 602 million euros). Cumulatively, consolidated net sales amounted to 1,300 million euros in the first half of 2015—10 per cent up on the year-earlier level (1,177 million euros). All of the business areas contributed to this growth. In Germany, the single-most important market, net sales increased by 7 per cent to 326 million euros in the first six months of 2015 (prior year: 306 million euros). Foreign net sales climbed by 12 per cent to 974 million euros (prior year: 871 million euros). The increase in non-European net sales was particularly pronounced, amounting to 19 per cent, buoyed by strong growth in China. The foreign ratio rose from 74 per cent to 75 per cent.
The main drivers of the substantial growth in consolidated net sales in the first half of 2015 were the marked increases in net sales in new truck business in the second quarter. Cumulatively, the Jungheinrich Group drove up net sales in the first six months by 11 per cent to 698 million euros (prior year: 627 million euros). Overall, the short-term hire and used equipment business posted a rise of 11 per cent to 231 million euros (prior year: 208 million euros). After-sales services recorded an 8 per cent gain to 385 million euros (prior year: 356 million euros). Net sales in the financial service business were up 11 per cent to 313 million euros (prior year: 283 million euros).
Earnings
In the second quarter of 2015, the Jungheinrich Group drove up EBIT by 21 per cent to 56.3 million euros on the back of high unit production figures (prior year: 46.4 million euros). The corresponding return on sales (EBIT ROS) in the second quarter was 8.3 per cent (prior year: 7.7 per cent). In the first half of 2015, EBIT climbed by a cumulative 14 per cent to 98.6 million euros (prior year: 86.6 million euros). By the mid-year point, the corresponding return on sales (EBIT ROS) was 7.6 per cent (prior year: 7.4 per cent). At 36.6 million euros, net income in the second quarter of 2015 was 21 per cent higher than the corresponding figure achieved in 2014 (30.2 million euros) and recorded a cumulative increase of 15 per cent to 64.2 million euros (prior year: 55.9 million euros) in the first half of 2015. In this period, corresponding earnings per preferred share amounted to 1.92 euros (prior year: 1.68 euros).
Balance sheet total
By June 30, 2015, the Jungheinrich Group's balance sheet total had risen by 83 million euros to 3,123 million euros compared to its level at the end of fiscal 2014 (December 31, 2014: 3,040 million euros). Intangible and tangible assets were up 20 million euros to 481 million euros. The equity ratio rose to 30.3 per cent (December 31, 2014: 29.6 per cent).
Employees
In the first half of 2015, Jungheinrich further expanded its labour force—particularly in the European sales organization. By June 30, 2015, a total of 12,978 people were on the Group's payroll (December 31, 2014: 12,549 staff members). Jungheinrich employed 2,615 people in the Hamburg metropolitan region as of June 30, 2015 (December 31, 2014: 2,550 staff members).
Jungheinrich acquires MIAS Group
Jungheinrich continues to enlarge the footprint it has as a logistic system provider. To this end, Jungheinrich AG signed an agreement regarding the acquisition of the MIAS Group with its owners at the end of July. Headquartered in Munich, the MIAS Group is an international mechanical engineering company in the warehousing and transportation technology sectors, where it offers stacker cranes and load handling technology. In the 2014 financial year, the group generated about 40 million euros in net sales with over 300 employees. As part of the Jungheinrich Group, the MIAS Group will maintain its independent presence on the market under the MIAS brand name.
Outlook
With regard to the remaining course of the year, Jungheinrich expects the world economy to display positive development. Against this backdrop, the company anticipates that the world material handling equipment market will continue to grow. As before, Europe's market is also likely to post positive development. Demand in Western Europe may well continue to rise, albeit with less momentum than thus far. This also holds true for Eastern Europe, with the exception of Russia. In Asia—excluding China—the company also expects to see continue market growth, while in China, only the warehousing equipment and battery-powered counterbalanced truck segments will probably expand. The North American market should also grow further. The market trend witnessed in the first half of 2015 supports these expectations.
Says Hans-Georg Frey, Chairman of the Board of Management of Jungheinrich AG: "Based on the economic prognoses, which are positive overall, and in light of our persistently good order books, we are raising our forecast for fiscal 2015. Incoming orders are now expected to total between 2.7 and 2.8 billion euros. Consolidated net sales should amount to between 2.65 and 2.75 billion euros. Our assessment is that EBIT will amount to between 195 and 205 million euros in the financial year underway. We anticipate that income before tax will be between 180 and 190 million euros."
Jungheinrich ranks among the world's leading companies in the material handling equipment, warehousing and material flow engineering sectors. The company is an intralogistics service and solution provider with manufacturing operations, which offers its customers a comprehensive range of forklift trucks, logistic systems, services and advice. Jungheinrich shares are traded on all German stock exchanges.
