DGAP-News: KION Group generates strong growth in 2010

2011-03-23

KION Group generates strong growth in 2010

  • Order intake increases by 27.5 per cent to around EUR3.9 billion
  • Net revenue rises to more than EUR3.5 billion, up 14.6 per cent
  • EBITDA up 48.7 per cent to EUR462 million following strong 3rd and 4th quarters
  • KION benefits from strong position in high-growth markets

Wiesbaden, 23 March 2011 - The KION Group, one of the two largest global manufacturers of forklift trucks and warehouse equipment, benefited from the pronounced recovery of the world markets for material handling products and services in 2010. This is underscored by the 2010 annual financial statements, which the company's Supervisory Board approved at its meeting on Wednesday.

The KION Group was able to consolidate its global market position as the number one in Europe, number two worldwide and the leading international supplier in China with a worldwide market share of over 15 per cent. It also took advantage of its strong foothold in the high-growth markets, which accounted for more than a quarter of total new truck sales in 2010.

Following the sharp decline in 2008 and the even sharper decline in 2009, the global market for industrial trucks made a strong recovery in 2010, increasing by 45 per cent to 796,000 units. The high-growth regions of eastern Europe, China and South America considerably bolstered their significance.

Germany was the main driver of growth in the KION Group's home market of western Europe, which grew by 23 per cent to 222,000 units. Demand for industrial trucks in eastern Europe, where the KION Group maintains a leading position, almost doubled to some 40,000 units. Despite this growth, the western and eastern European markets are still more than 25 per cent and 40 per cent respectively below their previous peak levels. The Chinese market expanded by 70 per cent to set a new record high of more than 200,000 units. As a result, China now makes up about a quarter of the global market. The KION Group has had its own production sites and development capacities as well as an extensive distribution and service network in China for more than 15 years. In 2010, it assumed complete management control over the local brand Baoli, which had been set up as a joint venture in 2009. Brazil, which is South America's most important market for forklift trucks and warehouse equipment, enjoyed a very high rate of growth, with demand rising by 170 per cent to 23,000 units. The KION Group is also represented in Brazil with local production facilities and an effective distribution and service network of its brand companies.

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[1] adjusted for non-recurring items prior to purchase price allocation (PPA), incl. net investment income


Order intake for the KION Group climbed significantly to EUR3.860 billion (2009: EUR3.028 billion), a year-on-year increase of 27.5 per cent. As at 31 December 2010, the KION Group's order backlog stood at EUR801 million. The KION Group's revenue rose by an impressive 14.6 per cent in 2010 to EUR3.534 billion (2009: EUR3.084 billion). In 2010, 46 per cent of revenue was generated from the less cyclical service business, which encompasses after sales, services, rental business and pre-owned trucks.

The KION Group improved earnings before interest, tax, depreciation and amortisation (EBITDA ), adjusted for one-off items, by an above-average 48.7 per cent to EUR462 million (2009: EUR311 million). As a result, the EBITDA2 margin, adjusted for one-off items, rose from 10.1 to 13.1 per cent. The EBITDA2 margin strongly improved in particular in the second half of 2010, reaching 14.2 per cent in the fourth quarter of 2010. The EBIT2 margin also improved accordingly in 2010, rising by 4.8 percentage points for the year as a whole. The main contributing factors were the positive revenue increase in the home European markets and the emerging markets, the optimised capacity utilisation resulting from the restructuring in 2009 and 2010 and the successful containment of fixed costs.

Cashflow from operating activities rose by 73.7 per cent to EUR199 million (2009: EUR115 million). One of the reasons for this rise was the fact that, despite the significantly higher volume of business, working capital rose at a lower rate than revenue. The cashflow from investing activities amounted to a net outflow of EUR123 million (2009: EUR113 million); free cashflow therefore amounted to EUR76 million (2009: EUR2 million).

As at 31 December 2010, the number of employees (including 557 apprentices and trainees) was 19,968 - largely unchanged on the previous year's figure (31 December 2009: 19,953).

Provided the market strength continues, the KION Group anticipates for 2011 that the volume increase and the long-term structural improvements that have been introduced will have a further positive impact on profitability.

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[2] adjusted for non-recurring items prior to purchase price allocation (PPA), incl. net investment income


KION Group - Business Year 2010

EUR million 2010 2009 Change
Order intake 3,860 3,028 +27.5%
Revenue
thereof
3,534 3,084 +14.6%
Linde Material Handling 2,254 1,920 +17.4%
STILL3 1,245 1,095 +13.7%
OM3 202 191 +5.6%
EBITDA
EBITDA4 margin
462
13.1%
311
10.1%
+48.7%
+3.0 percentage points
EBIT4
EBIT4 margin
139
3.9%
(29)
(0.9%)
>100%
+4.8 percentage points
Cashflow
from operating activities
Free cashflow
199
 
76
115
 
2
+73.7%
 
>100%
Employees
(FTEs, including apprentices /
trainees)
19,968 19,953 +0.1%
 

The Company
The KION Group, with its Linde, STILL, Fenwick, OM and Baoli brands, is the market leader in industrial trucks in Europe, the global number two in the industry and the leading international supplier in China. In 2010, the KION Group employed around 20,000 people and generated revenue of more than EUR3.5 billion.

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[3] before consolidation effects
[4] adjusted for non-recurring items prior to purchase price allocation (PPA), incl. net investment income
 

For further information please contact
Michael Hauger
Head of Communications and Investor Relations
Tel.: +49 (0)611.770-655
E-mail: michael.hauger@kiongroup.com

Frank Kopfinger
Head of Investor Relations
Tel.: +49 (0)611.770-220
E-mail: frank.kopfinger@kiongroup.com

 

Contact

Contact

Michael Hauger

Senior Vice President Corporate Communications

Contact

Frank Grodzki

Senior Director Corporate External Communications & Group Newsroom

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