DGAP-News: KION GROUP AG / Key word(s): Miscellaneous
KION Group aims to become industry leader with its Strategy 2020 (news
with additional features)
20.03.2014 / 14:06
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- Focus on growth, profitability, resilience and capital efficiency
- Medium-term objectives: market leadership and an EBIT margin in double
digits
- Greater significance for Asia and North America
- Cross-brand deployment of shared modules and platforms
Wiesbaden, 20 March 2014 - KION GROUP AG intends to harness its global
potential even more effectively, focusing on growth, profitability,
resilience and capital efficiency in order to become the industry leader
worldwide. Other objectives within its KION Group Strategy 2020 are an EBIT
margin in double digits and a significantly higher return on capital
employed. "We want to become one of the best capital goods companies in
every aspect," said Gordon Riske, Chief Executive Officer of KION GROUP AG,
when the company presented its 2013 annual report.
The KION Group attaches particular importance to the fast-growing Asian and
North American markets. It plans to boost the competitiveness of the global
brands Linde, STILL and Baoli and the regional brands Fenwick, OM STILL and
Voltas by stepping up use of shared modules and platforms.
"The core element of our Strategy 2020 is to make even better use of the
KION Group's strong global position and cross-brand synergies," added
Riske. "The basis for this is our successful integrated business model with
its high proportion of service business, as well as our multi-brand
strategy."
The KION Group also plans to use its Strategy 2020 to strengthen its
resilience in the event of decreases in revenue during economic downturns.
"We want to remain clearly profitable, even in times of crisis," said
Thomas Toepfer, Chief Financial Officer of KION GROUP AG. "To this end, we
intend to expand our position as the most profitable supplier in our
industry and generate EBIT margins of more than 10 per cent - as achieved
by other companies in the capital goods sector with comparable integrated
business models."
Contributing to this objective is the service business, which accounts for
over 40 per cent of the KION Group's revenue. Some 1.2 million trucks built
by the KION brand companies are now in use worldwide - representing an
enormous reservoir of potential service business that the company intends
to systematically exploit.
Growth plans for Asia and the United States
Asia, especially China, plays a central role in the KION Group's growth
plans. "We are deliberately developing product platforms beneath the
premium segment that we can deploy worldwide," explained Riske. The KION
Group believes that this will enable it to manufacture trucks for other
growth markets far more efficiently and, as a result, more cheaply.
The KION Group also wants to gain a much stronger foothold in the United
States. In order to increase market share there, the company will continue
to expand the product portfolio for the US market and offer additional
services. It will do so by drawing on sufficient capacity reserves of an
existing plant in South Carolina, using product platforms developed within
the company and with the aid of an extensive existing dealer network. In
its home market of Europe, the KION Group will continue to benefit from its
position as the undisputed market leader in the premium segment.
Further process improvements
From production right through to marketing, sales and service, the KION
Group aims to fully exploit economies of scale and efficiency gains in
every area. "The purchasing and product development units will collaborate
even more closely. This will reduce product costs and ensure that the KION
brands become even more competitive in many markets," explained CFO Thomas
Toepfer. Capacity utilisation in the production facilities is to be stepped
up while vertical integration will be constantly reviewed. Moreover, the
Group's manufacturing facilities are to be brought even closer to its
global sales markets.
Closer cooperation on research and development in growth markets
Under the Strategy 2020, multi-brand research and development (R&D) teams
will cooperate more closely at KION level in the growth markets, using
shared worldwide platforms that are mainly developed at the KION Group's
Chinese R&D centre. Meanwhile, the focus in Europe will be on shared,
cross-brand modules. The R&D teams in Europe and the growth markets will
share knowledge and information extensively. Modules and platforms
developed within the Group are available to all brand companies and
regions.
Business performance in 2013
The KION Group can look back on a solid 2013. EBIT and profitability
reached record levels despite weakness in the western European market and
unfavourable currency effects. The Group recorded order intake and revenue
at similarly high levels to those in the previous year, after adjusting for
the sale of the hydraulics business in 2012.
About KION Group
The KION Group - comprising the six brands of Linde, STILL, Fenwick, OM
STILL, Baoli and Voltas - is the largest manufacturer of industrial trucks
in Western and Eastern Europe, the global number two in the industry and
the leading non-domestic supplier in China. The Linde and STILL brands
serve the premium segment worldwide. Fenwick is the largest supplier of
material handling products in France, while OM STILL is a market leader in
Italy. The Baoli brand focuses on the economy segment, and Voltas is a
market leader in India in industrial trucks. The KION Group is present in
more than 100 countries.
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
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
Frank Herzog
Head of Corporate Finance
Tel.: +49 (0) 611.770-303
frank.herzog@kiongroup.com
Silke Glitza
Head of Investor Relations and M&A
Tel.: +49 (0) 611.770-450
silke.glitza@kiongroup.com
End of Corporate News
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Additional features:
Document: http://n.equitystory.com/c/fncls.ssp?u=VJCFKYEIOH
Document title: Strategy 2020 EN
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20.03.2014 Dissemination of a Corporate News, transmitted by DGAP - a
company of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
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Media archive at www.dgap-medientreff.de and www.dgap.de
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Language: English
Company: KION GROUP AG
Abraham-Lincoln-Str. 21
65189 Wiesbaden
Germany
Phone: +49 (0)611 770-0
Fax: +49 (0)611 770-690
E-mail: info@kiongroup.com
Internet: www.kiongroup.com
ISIN: DE000KGX8881
WKN: KGX888
Indices: SDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover,
München, Stuttgart
End of News DGAP News-Service
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258678 20.03.2014
DGAP-News: KION Group aims to become industry leader with its Strategy 2020 (news with additional features)
| Source: EQS Group AG