Q3 figures 2017

KION Group remains on course for growth despite headwinds

The KION Group continued to grow profitably in the third quarter and benefitted from the opportunities arising from e-commerce and the megatrends of automation and digitalization. Because of headwinds in the Supply Chain Solutions segment it slightly adjusted its outlook.

2017-10-26

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The KION Group has remained on course for profitable growth in the third quarter of 2017 despite headwinds. Following last year's acquisition of Dematic, a specialist in automation and supply chain optimization, the total value of order intake grew compared to the same period of the previous year by 39.2 percent to €1.847 billion in the period July to September 2017. At €2.186 billion, the order book was on the high level reported at the end of 2016 (€2.245 billion). In the third quarter, revenue improved by 44.0 percent to €1.847 billion, while adjusted EBIT grew by 53.6 percent to €194.7 million. Despite the higher cost of materials and currency effects related to pound sterling, the Group increased its adjusted EBIT margin from 9.9 percent in the corresponding period of the previous year to 10.5 percent.


Net income improved by 19.0 percent in the third quarter to €80.2 million. Earnings per share for the period amounted to €0.68. The Group achieved a free cash flow of €119.9 million between January and September (Q3 2017: €19.3 million).


Looking at the first nine months of this year, the total value of order intake increased by 40.7 percent to €5.699 billion compared to the same period of the previous year, while revenue improved by 47.5 percent to €5.675 billion over the same period. Adjusted EBIT climbed by 53.4 percent to €561.8 million between January and September. Net income rose by 40.2 percent to €230.4 million.


"Despite headwinds we continued to grow profitably, benefitting from the opportunities arising from e-commerce and the megatrends of automation and digitalization across both our business segments”, commented Gordon Riske, CEO of the KION Group, at the presentation of the final results for the quarter and the first nine months of 2017. “Also thanks to our acquisition of Dematic, we are very well positioned in this respect.”


The global market for forklift trucks and warehouse technology recorded further growth in the third quarter of 2017. The number of new orders increased year on year by 15.5 percent to around 332,500 units, driven mainly by particularly strong gains in China and ongoing growth in Europe.

Video

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


Segment performance in detail

Following the strong growth in the Industrial Trucks & Services segment of the past quarters, growth is returning to normal. In the third quarter of 2017, the order intake, measured in terms of units, saw a year-on-year increase of 11.3 percent to around 45,300 units. In the first nine months of 2017, the segment reported an increase of 13,8 percent to 147,700 units. The total value of order intake grew by 5.2 percent to €1.352 billion in the third quarter, and by 9.2 percent to €4.280 billion for the period January to September. Revenue rose by 6.2 percent year on year to €1.330 billion in the third quarter (Q1–Q3 2017: €4.070 billion, up 8.2 percent), with the new truck business in western Europe making a particularly strong contribution to this increase. By far the biggest share of this increase in revenue was attributable to electric forklift trucks and warehouse equipment. The adjusted EBIT for the third quarter came to €152.5 million, a year-on-year increase of 6.1 percent (Q1–Q3 2017: €448.3 million, up 8.9 percent). The adjusted EBIT margin remained high at 11.5 percent in the third quarter (Q1–Q3 2017: 11.0 percent).

The Supply Chain Solutions segment, which has only included Dematic since November 2016, reported an order intake of €492.7 million in the third quarter of 2017, compared to €38.1 million in the corresponding period of the previous year. The segment's order intake between January and September was €1.406 billion, up from €117.9 million for the nine-month period in 2016. It posted revenue of €514.2 million in the third quarter in comparison with €27.2 million a year earlier (Q1–Q3 2017: €1.593 billion; Q1–Q3 2016: €74.8 million). In the period July to September 2017, adjusted EBIT stood at €58.7 million, whereas the segment had reported an operating loss of €0.8 million in the corresponding period of the previous year (Q1–Q3 2017: €154.2 million; Q1–Q3 2016: loss of €3.3 million). The adjusted EBIT margin in the third quarter of 2017 was a healthy 11.4 percent (Q1–Q3 2017: 9.7 percent).