DGAP-News: KION GROUP AG / Key word(s): Quarter Results
KION Group on course for strong full-year results after a solid third
quarter (news with additional features)
27.10.2016 / 07:07
The issuer is solely responsible for the content of this announcement.
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- Total value of order intake between July and September grows by around 6
per cent
- New truck orders increase by more than 10 per cent in the third quarter,
driven mainly by growth in Europe
- Order book expands by approximately 20 per cent compared with the end of
2015
- Revenue for the quarter rises by nearly 4 per cent year on year
- Profitability improves in the third quarter to an EBIT[1] margin
of 9.9 per cent
- Net income increases by around 36 per cent
- Free cash flow higher than in the prior-year period
- Outlook for 2016 confirmed
- Closing of Dematic acquisition proceeding according to plan
Wiesbaden, 27 October 2016 - The KION Group is heading for a strong 2016
following a solid third quarter. Driven mainly by growth in Europe, the
total value of order intake in the period July to September increased by
5.8 per cent year on year to EUR1.327 billion. At EUR1.041 billion, the
order book was up by 20.4 per cent compared with the end of 2015. Revenue
advanced by 3.8 per cent to EUR1.283 billion, while the Group's EBIT[1]
grew by 4.6 per cent to EUR126.8 million. As a result, the EBIT[1] margin
improved to 9.9 per cent in the three-month period.
The KION Group, one of the two leading suppliers of forklift trucks,
warehouse technology and associated services, saw the number of trucks
ordered go up by 10.3 per cent in the third quarter of 2016. Compared with
the third quarter of last year, the Company took 12.2 per cent more orders
in its core market of western Europe. In China, the world's largest single
country market, 15.7 per cent more trucks were ordered from KION Group
brands than in the corresponding quarter of 2015.
In the period July to September, demand for industrial trucks in the world
market rose by 13.2 per cent year on year to approximately 287,900 new
trucks. The increase in western Europe, which was driven by simple
warehouse trucks, was 14.0 per cent. The Chinese market stabilised,
registering a large rise of 22.4 per cent. During the third quarter, the
growth trend for electric forklift trucks and warehouse trucks continued
worldwide, while orders for IC trucks picked up - mainly on the back of
demand in China.
"Our good results in the past quarter create stronger foundations on which
to begin a new era for the KION Group once the Dematic acquisition closes
in the fourth quarter," said the Chief Executive Officer of the KION Group,
Gordon Riske. "Thanks to a unique and comprehensive portfolio of products
ranging from forklift trucks to fully automated material handling
solutions, we will be better positioned than ever to meet the needs of our
customers and to support them with value adding solutions. There is a lot
of work still to be done, but this means that we are ideally positioned to
seize the opportunities of Industry 4.0 or the Internet of Things, e-
commerce and digitalisation."
Business performance in detail
The order intake reported by the KION Group for the third quarter rose by
10.3 per cent to approximately 40,700 trucks. In the nine-month period, the
Company's order intake was up 6.1 per cent to around 129,900 trucks. The
value of order intake rose year on year both in the third quarter and in
the period January to September, increasing by 5.8 per cent to EUR1.327
billion for the third quarter and by 6.1 per cent to EUR4.050 billion for
the first nine months. However, there were negative currency effects of
EUR25.9 million in the third quarter and EUR82.9 million in the period
January to September. The order book as at 30 September 2016 stood at
EUR1.041 billion, which was up by 20.4 per cent on the end of 2015.
Consolidated revenue improved by 3.8 per cent to EUR1.283 billion in the
third quarter and by 5.2 per cent to EUR3.848 billion in the first three
quarters of the year. In the new truck business, revenue from electric
forklift trucks rose significantly. There was a slight increase in revenue
from warehouse trucks, with substantially higher rates of increase in the
third quarter than in the first six months of the year. Negative currency
effects amounted to EUR25.9 million in the third quarter and to EUR79.3
million in the first three quarters of 2016 combined.
Earnings before interest and tax (EBIT[1]) was up by 4.6 per cent to
EUR126.8 million in the third quarter due to a strong operating
performance. In the nine-month period, EBIT[1] improved by 10.6 per cent to
EUR366.1 million. The KION Group's EBIT[1] margin in the third quarter was
thus better than in the corresponding period of 2015 at 9.9 per cent. In
the period January to September, the KION Group achieved a margin of 9.5
per cent, compared with 9.1 per cent in the prior-year period. This is in
line with the margin growth expected for the year as a whole of between 0.3
and 0.5 percentage points.
Net income in the period from July to September amounted to EUR67.3
million, up by 36.1 per cent on the same three months of 2015. This was due
to the strong operating business and lower financial expenses following the
refinancing in February 2016. In the first nine months of 2016, net income
improved by 14.3 per cent to EUR164.4 million. Earnings per share came to
EUR1.59 for the first nine months of 2016 (Q1-Q3 2015: EUR1.44).
Free cash flow rose from EUR30.1 million in the third quarter of 2015 to
EUR75.7 million in the comparable period of 2016 and from EUR39.4 million
in the first three quarters of 2015 to EUR65.2 million in the first nine
months of this year. The main reasons for this encouraging trend were an
increased EBIT, a lower rise in working capital and a reduction in cash
payments for acquisitions.
Total expenditure on research and development (R&D) amounted to EUR33.4
million in the third quarter (Q1-Q3 2016: EUR100.9 million), compared with
EUR31.0 million in the corresponding quarter of last year (Q1-Q3 2015:
EUR95.1 million). R&D spending as a proportion of revenue remained at 2.6
per cent in the third quarter (Q1-Q3 2016: 2.6 per cent).
The number of employees at 30 September 2016 was 24,184, up by 2.9 per cent
compared with the end of 2015.
Closing of Dematic acquisition going to plan
Closing of the acquisition of Dematic is proceeding according to plan and
is expected to take place in the fourth quarter. In July, a capital
increase generated gross proceeds of around EUR459 million that will be
used to partly finance the purchase. At the same time, preparations for the
integration of Dematic are fully under way. Dematic is a leading global
supplier of advanced integrated automation technology, software and
services. Its portfolio of products and systems comprises automated guided
vehicles, palletisers, storage and picking equipment including automated
storage and retrieval systems, sorters and conveyors, a leading integrated
software platform and automation technologies. Dematic has grown by more
than 12 per cent annually since 2013. In 2015, it generated revenue of
roughly EUR1.6 billion and adjusted EBIT of EUR150 million.
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.
[1] EBIT and EBITDA adjusted for KION acquisition items and non-recurring
items.
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 and is
part ofthe MDAX (the German stock index for medium-sized companies), the
STOXX Europe 600 and the FTSE EuroMid indices.
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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27.10.2016 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
End of News DGAP News Service
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515063 27.10.2016
DGAP-News: KION Group on course for strong full-year results after a solid third quarter (news with additional features)
| Source: EQS Group AG