DGAP-News: KION GROUP AG / Key word(s): Quarter Results
KION Group sees itself well on track in implementing its Strategy 2020 (news
with additional features)
27.07.2016 / 07:00
The issuer is solely responsible for the content of this announcement.
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- Good progress on completing the Dematic acquisition
- Initiatives for margin improvement are bearing fruit
- KION confirms its strong second-quarter results and outlook for 2016
Wiesbaden, 27 July 2016 - The KION Group sees itself well on track with the
implementation of its Strategy 2020 in view of the announced acquisition of
Dematic and a strong first half of 2016. Today, the Company confirmed the
preliminary results that it had published on 18 July 2016 for the second
quarter and for the first six months of the financial year. "The
acquisition of Dematic is a core element in achieving our strategic
objectives for the year 2020," said Gordon Riske, Chief Executive Officer
of the KION Group, when the final results were published.
Riske emphasised that the KION Group was making good progress with
implementing the acquisition of Dematic, a leading specialist for
automation and supply chain optimisation. A major milestone was reached
with last week's very successful capital increase, which will be used to
partly refinance the Dematic acquisition. The transaction was announced on
21 June and is expected to close in the fourth quarter of 2016. "The
acquisition of Dematic will create a world-leading full-service provider of
intelligent material handling solutions addressing all Intralogistics 4.0
requirements," explained Gordon Riske, whose contract has recently been
extended until 2022.
Core business advancing well
According to Riske, the current core business of forklift trucks, warehouse
technology and related services is also advancing well in terms of KION's
strategy of further profitable growth. "The significant improvement in the
margin to 10.5 per cent in the second quarter shows that we are making good
progress in achieving the margin targets in our core business," said the
CEO. Among the contributing factors are the new KION plant in Stříbro,
Czech Republic, which opened at the start of the year and is the Group's
most modern production facility, as well as the group-wide module and
platform strategy.
The Strategy 2020, which was presented just over two years ago, focuses on
growth, profitability, capital efficiency and resilience to crises. By
2020, the KION Group aims to have further expanded its position as a
leading supplier of material handling solutions, to remain the most
profitable supplier in the sector with an adjusted EBIT margin in its core
business that is permanently in double digit range and to significantly
increase its return on capital employed. Moreover, the Company wants to
remain profitable even in the case of a revenue decline as was experienced
during the 2009 financial crisis.
The KION Group remains firmly on a path of profitable growth in Q2
After a very solid start to 2016, the KION Group remains firmly on its path
of profitable growth in the second quarter. In the period from April to
June, the total value of order intake rose by 8.3 per cent year on year to
reach EUR1.427 billion. This was due, in particular, to the pace of growth
in the core market of western Europe. The order book stood at EUR1.009
billion, which was 16.8 per cent higher than at the end of 2015. Revenue
improved by 7.0 per cent to EUR1.344 billion. Earnings before interest and
tax (EBIT[1]) reached EUR140.8 million, an increase of 20.9 per cent. As a
result, the KION Group generated a significantly improved EBIT[1] margin of
10.5 per cent in the period April to June - the highest figure for a second
quarter so far.
The KION Group, one of the two leading suppliers of forklift trucks,
warehouse technology and associated services, saw its orders increase by
3.9 per cent to approximately 45,600 units in the second quarter of this
year. The Group thus again grew faster than the world market as a whole. In
western Europe, the KION Group's orders rose by 4.7 per cent in the second
quarter, another year-on-year rise. The Company's focus on warehouse
equipment - the segment with currently the highest growth rates - is more
on sustainable growth from higher-value equipment than on high-volume
products with little value added. In China, the world's largest single
country market, 3.9 per cent more trucks were ordered from KION Group
brands than in the corresponding period of 2015.
In the second quarter, demand for industrial trucks in the overall world
market rose by 1.8 per cent year on year to approximately 297,500 new
trucks. The increase in western Europe, which was driven by simple
warehouse equipment, was 11.3 per cent. The Chinese market contracted
slightly by 1.2 per cent. During the reporting period, the strong growth
trend for electric forklift trucks and warehouse equipment continued
worldwide, whereas there was a further decline in orders for IC trucks.
[1] EBIT adjusted for KION acquisition items and non-recurring items.
Outlook
The KION Group fully confirms the outlook for 2016 provided in the 2015
group annual report. Any effects of the acquisition of Dematic have not
been taken into account as the closing of the transaction is expected in
the fourth quarter of 2016. Accordingly, the order intake is expected to be
between EUR5.350 billion and EUR5.500 billion. The target figure for
consolidated revenue is in the range of EUR5.200 billion to EUR5.350
billion. The targeted range for adjusted EBIT is EUR510 million to EUR535
million. The adjusted EBIT margin is predicted to increase above the margin
of 9.5 per cent that was generated in 2015. Free cash flow is expected to
be in a range between EUR280 million and EUR320 million after taking
account of the acquisition of Retrotech Inc.
Website: kiongroup.com/mediasite
Twitter: @kion_group
The Company
The KION Group - comprising the seven brands of Linde, STILL, Fenwick, OM
STILL, Baoli, Voltas and Egemin Automation - 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 leading provider of industrial trucks in India. Egemin
Automation is a leading international specialist in logistics automation.
The KION Group is present in more than 100 countries and, in 2015, employed
approximately 23,500 people and generated revenue of around EUR5.1 billion.
KION GROUP AG is listed on Deutsche Börse's Frankfurt Stock Exchange, the
MDAX (the German stock index for medium-sized companies), the STOXX Europe
600 index, which comprises the 600 largest companies in Europe, and the
FTSE EuroMid, which is made up of mid-cap European stocks.
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
Dr Karoline Jung-Senssfelder
Head of Investor Relations and M&A
Tel: +49 (0)611 770 450
karoline.jung-senssfelder@kiongroup.com
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Document: http://n.eqs.com/c/fncls.ssp?u=EGOOPOVOMW
Document title: Download press release as PDF
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27.07.2016 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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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: MDAX
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover,
Munich, Stuttgart, Tradegate Exchange; Terminbörse EUREX
End of News DGAP News Service
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486389 27.07.2016
DGAP-News: KION Group sees itself well on track in implementing its Strategy 2020 (news with additional features)
| Source: EQS Group AG