Q2 figures 2017

KION Group maintains profitable growth

The KION Group continues a strong growth, both organically and as a result of the Dematic acquisition, and confirms the outlook for 2017.

2017-07-26

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Having seen strong momentum in the first quarter of 2017, the KION Group continued to grow profitably during the first half of the year. In the second quarter of 2017, the total value of order intake rose by 38.1 percent to €1.971 billion following last year's acquisition of Dematic, a specialist in automation and supply chain optimization. At €2.196 billion, the order book was at the high level reported at the end of 2016 (€2.245 billion). The period April to June 2017 saw substantial year-on-year revenue growth of 50.0 percent to €2.016 billion. Adjusted earnings before interest and tax (EBIT) went up by 52.2 percent to €214.2 million. The KION Group thus improved on the strong adjusted EBIT margin of 10.5 percent achieved in the second quarter of last year to reach 10.6 percent. Second-quarter net income rose to €108.2 million, an increase of 69.1 percent. Earnings per share for the period amounted to €0.95.


Looking at the first half of 2017, the total value of order intake grew by 41.4 percent to €3.852 billion, while revenue for the first six months of the year improved by 49.3 percent to €3.828 billion. In the period January to June, adjusted EBIT went up by 52.2 percent to €214.2 million. adjusted EBIT increased by 53.4 percent to €367.1 million and net income was up by 54.8 percent to €150.3 million. Driven by its good operating performance, the Group generated a strong free cash flow of €100.6 million in the period January to June (Q2 2017: €36.1 million).


"Our two main segments – Industrial Trucks & Services and Supply Chain Solutions – continue to see strong market momentum, and we are fully participating in this growth," said Gordon Riske, Chief Executive Officer of the KION Group. "The global market for trucks and warehouse technology also developed very well in the second quarter. As before, the rapid expansion of e-commerce and the increasing penetration of Industry 4.0 technologies are driving the warehouse systems and automation solutions businesses."


The global market for forklift trucks and warehouse technology recorded further growth in the second quarter of 2017. New truck orders were up by 15.5 percent on the second quarter of 2016, reaching around 343,600 trucks. This rise was driven primarily by strong increases in China and the sustained momentum in Europe.


Successful capital increase

In May, KION GROUP AG carried out a successful capital increase, placing all 9,300,000 new shares with institutional investors at a price of €64.83 each. The resulting gross proceeds amounted to approximately €603 million, which has been used to partly refinance the acquisition of Dematic.

Given its good business and earnings performance in the first half of 2017, which was in line with expectations, the KION Group confirms the outlook for 2017 as a whole that was published in the 2016 combined management report.

Video

CFO Dr Thomas Toepfer on the KION Group's second quarter.


Segment performance in detail

The Industrial Trucks & Services segment (forklift trucks, warehouse technology, and related services) reported order intake, measured in terms of units, of approximately 52,500 trucks in the second quarter of 2017, a year-on-year improvement of 15.3 percent and the highest number of orders ever registered in a single quarter. In the first six months, the segment's order intake was up by 14.9 percent to 102,400 units. The total value of order intake grew by 9.9 percent to €1.514 billion in the second quarter and by 11.1 percent to €2.928 billion in the first half of the year. Revenue rose by 8.0 percent year on year to €1.417 billion in the second quarter (H1 2017: €2.740 billion, up by 9.2 percent), with the new truck business making a particularly strong contribution to this increase. The main revenue growth drivers were again electric forklift trucks and warehouse trucks. At €166.7 million, adjusted EBIT surpassed the figure for the prior-year quarter by 6.9 percent (H1 2017: €295.8 million, up by 10.4 percent). The adjusted EBIT margin remained stable at 11.8 percent in the second quarter (Q2 2016: 11.9 percent).

The Supply Chain Solutions segment has only included Dematic since November 2016 and the total value of its order intake was €452.3 million in the second quarter of 2017, compared with €44.7 million in the corresponding period of last year. This segment's order intake for the first six months was €913.6 million, up from €79.8 million in the first half of 2016. It posted revenue of €596.0 million for the second quarter of 2017 in comparison with €27.8 million a year earlier (H1 2017: €1.079 billion; H1 2016: €47.6 million). In the period April to June 2017, adjusted EBIT stood at €61.4 million, compared with an operating loss of €1.7 million in the second quarter of last year (H1 2017: €95.5 million; H1 2016: operating loss of €2.5 million). The adjusted EBIT margin reached a strong 10.3 percent in the second quarter of 2017.