KION Group publishes preliminary results for the first nine months of 2017 and slightly adjusts outlook

2017-10-19

DGAP-News: KION GROUP AG / Key word(s): Change in Forecast/9-month figures

19.10.2017 / 07:36
The issuer is solely responsible for the content of this announcement.


  • Value of order intake in the first nine months is EUR5.699 billion; revenue is EUR5.675 billion
  • Group achieves adjusted EBIT of EUR561.8 million; adjusted EBIT margin is 9.9 percent
  • Outlook for Group slightly lowered
  • Reasons are customers' hesitation to invest and delays in project decisions by customers in the Supply Chain Solutions segment

Wiesbaden, October 19, 2017 - The KION Group has published its preliminary results for the first nine months of 2017 and slightly adjusted its outlook for the financial year. Between January and September, the value of the company's order intake was EUR5.699 billion (Q1-Q3 2016: EUR4.050 billion), with revenue of EUR5.675 billion (Q1-Q3 2016: EUR3.848 billion). Adjusted EBIT was EUR561.8 million, resulting in an adjusted EBIT margin of 9.9 percent (Q1-Q3 2016: EUR366.1 million; 9.5 percent).

In the Industrial Trucks & Services segment, the value of order intake between January and September was EUR4.280 billion (Q1-Q3 2016: EUR3.919 billion, up by 9.2 percent). Revenue increased by 8.2 percent from EUR3.761 to EUR4.070 billion, while adjusted EBIT climbed from EUR411.5 to EUR448.3 million. The adjusted EBIT margin improved from 10.9 to 11.0 percent.

In the first nine months of 2017, the value of order intake in the KION Group's Supply Chain Solutions segment was EUR1.406 billion, with revenue of EUR1.593 billion. The adjusted EBIT was EUR154.2 million and the adjusted EBIT margin was 9.7 percent. The Supply Chain Solutions segment mainly comprises the business acquired from Dematic in November 2016.

While the year-on-year growth in the value of order intake and in revenue in the Industrial Trucks & Services segment was stronger than anticipated, order intake and revenue in the Supply Chain Solutions segment fell short of expectations. The weaker performance in the Supply Chain Solutions segment is mainly attributable to customers' hesitation to invest and delayed project decisions by customers.

A subsequent adjustment of the outlook for both segments for the fiscal year 2017 leads to a slightly adjusted outlook for the Group:

Order intake in the KION Group is now expected to be between EUR7.550 and EUR7.900 billion (previously EUR7.800 to EUR8.250 billion). The target figure for consolidated revenue is in the range of EUR7.400 to EUR7.700 billion (previously EUR7,500 to EUR7.950 billion). The target range for adjusted EBIT is between EUR715 and EUR765 million (previously EUR740 to EUR800 million). Free cash flow is expected to be in a range between EUR320 and EUR380 million (previously EUR370 to EUR430 million). The target figure for ROCE is in the range of 9.0 to 10.0 percent (previously 9.5 to 10.5 percent).

The bottom end of the range has thus been lowered by between 1.3 and 3.4 percent for order intake, revenue, and EBIT.

Order intake in the Industrial Trucks & Services segment is expected to be between EUR5.650 and EUR5.800 billion (previously EUR5.450 to EUR5.600 billion). The target figure for revenue is in the range of EUR5.450 to EUR5.600 billion (previously EUR5.300 to EUR5.450 billion). The target range for adjusted EBIT remains unchanged at EUR605 to EUR630 million.

The order intake of the Supply Chain Solutions segment is expected to be between EUR1.900 and EUR2.100 billion (previously EUR2.350 to EUR2.650 billion). The target figure for revenue is in the range of EUR1.950 to EUR2.100 billion (previously EUR2.200 to EUR2.500 billion). The target range for adjusted EBIT is between EUR170 and EUR195 million (previously EUR195 to EUR230 million).

The outlook is based on the assumptions that material prices will not increase any further and that the exchange rate environment will remain stable.

"Our sector - intralogistics - is benefiting hugely from growth drivers such as e-commerce and megatrends such as automation and digitalization," says Gordon Riske, Chief Executive Officer of the KION Group. "Thanks to Dematic and our new Supply Chain Solutions segment, we are well positioned to profit from these opportunities."

The final results for the third quarter of 2017 will be published on October 26 as stated in the financial calendar.


Website: kiongroup.com/mediasite

Twitter: @kion_group


The company

The KION Group is a global leader in industrial trucks, related services, and supply chain solutions. Across more than 100 countries worldwide, the KION Group designs, builds and supports logistics solutions that optimize material and information flow within factories, warehouses and distribution centers. The company is the largest manufacturer of industrial trucks in Europe, the second-largest producer of forklifts globally, and a leading provider of warehouse automation.

The KION Group's world-renowned brands are clear industry leaders. Dematic, the newest addition to the KION Group, is a global leader in automated material handling providing a comprehensive range of intelligent supply chain and automation solutions. The Linde and STILL brands serve the premium industrial truck segment. Baoli focuses on industrial trucks in the economy segment. Among its regional industrial truck brands, Fenwick is the largest supplier of material handling products in France, OM STILL is a market leader in Italy, and OM Voltas is a leading provider of industrial trucks in India.

With a global installed base of more than 1.2 million industrial trucks and over 6,000 installed systems, KION Group's customer base includes companies in all industries and of all sizes on six continents. The KION Group has more than 30,000 employees and generated revenue of around EUR5.6 billion in 2016.


Disclaimer

This document and the information contained herein are for information purposes only and do not constitute a prospectus or an offer to sell or a solicitation of an offer to buy any securities in the United States or in any other jurisdiction.

This release contains forward-looking statements that are subject to various risks and uncertainties. Future results could differ materially from those described in these forward-looking statements due to certain factors, e.g. changes in business, economic and competitive conditions, regulatory reforms, results of technical studies, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. We do not undertake any responsibility to update the forward-looking statements in this release.


Further information for the media

Michael Hauger
Head of Corporate Communications
Tel.: +49 (0)611 770 655
Mobile: +49 (0)151 16 86 55 50
michael.hauger@kiongroup.com

Frank Brandmaier
Head of Corporate Media Relations
Tel.: +49 (0)611 770 752
frank.brandmaier@kiongroup.com


Further information for investors

Dr Karoline Jung-Senssfelder
Head of Investor Relations and M&A
Tel.: +49 (0)611 770 450
karoline.jung-senssfelder@kiongroup.com


Additional features:

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19.10.2017 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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