DGAP-News: KION GROUP AG / Key word(s): Quarter Results
KION Group generates broad-based growth in third quarter despite
softer global economy (news with additional features)
05.11.2014 / 07:17
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- Total value of order intake up by more than 9 per cent in third quarter
- Growth again outperforms global market: orders by units advance by 10 per
cent in third quarter thanks to buoyancy of western Europe, Asia and
eastern Europe
- Revenue for the quarter rises by more than 5 per cent year on year
- EBIT[1] increases by over 11 per cent to EUR111.8 million
- Further improvement in profitability: EBIT[1] margin climbs to 9.8 per
cent in third quarter
- Free cash flow for the quarter rises more than 50 per cent
- Outlook for 2014 confirmed
Wiesbaden, 5 November 2014 - The KION Group generated visible growth on a
broad front in the third quarter of 2014, despite a softer global economy.
Thanks to the buoyancy of the KION Group's core market western Europe, Asia
and eastern Europe, the value of order intake increased to EUR1.142 billion
- up by more than 9 per cent compared with the corresponding quarter of the
previous year. While the KION Group's revenue between July and September
went up by more than 5 per cent year on year, there was a significant rise
of over 11 per cent in earnings before interest and tax (EBIT[1]). This
drove the EBIT[1] margin from 9.3 to 9.8 per cent in the quarter under
review.
The KION Group, one of the two leading suppliers of forklift trucks,
warehouse technology and associated services, saw its unit order intake
advance by 10.0 per cent in the third quarter whereas the market as a whole
expanded by 6.4 per cent. In the period January to September, the KION
Group generated growth of 8.9 per cent, compared with 8.3 per cent in the
market as a whole. The KION Group also outperformed the market in both
China and eastern Europe. In China, the largest single market, unit orders
were up by 8.9 per cent in the third quarter and by 14.6 per cent over the
first nine months of the year. Meanwhile, its order intake in eastern
Europe increased by 16.3 per cent in the third quarter and by 11.8 per cent
in the period January to September. The KION Group's unit orders in western
Europe rose by 11.5 per cent in the third quarter and by 10.4 per cent in
the nine-month period, which was slightly below the growth generated by the
market as a whole.
"One of the reasons for our success in the third quarter and in the first
nine months of 2014 is our strong service business, which generates stable
revenues with attractive margins," said the KION Group's Chief Executive
Officer, Gordon Riske. "The KION Group has therefore again proved the
effectiveness of its integrated business model. Our resilience in the face
of a softer global economy is strengthened by the diversity of our customer
base, which encompasses a very broad range of industries."
The global market for industrial trucks saw further year-on-year growth,
both in the third quarter and in the first nine months of 2014. Driven
primarily by increases in western Europe and China, global unit order
intake advanced by 6.4 per cent year on year to approximately 260,500
trucks in the third quarter (Q1-Q3 2014: 816,800 trucks, a rise of 8.3 per
cent). In the third quarter, western Europe registered growth of 13.7 per
cent (Q1-Q3 2014: growth of 12.6 per cent), while China's orders were up by
6.7 per cent (Q1-Q3 2014: up by 12.2 per cent). In the period July to
September, orders in eastern Europe grew by 5.3 per cent (Q1-Q3 2014:
growth of 2.4 per cent).
Business performance in detail
The order intake in units reported by the KION Group for the third quarter
rose by 10.0 per cent to 35,300 trucks. In the period January to September
2014, this figure was up by 8.9 per cent to 115,200 trucks. There were
substantial year-on-year increases in the value of order intake, both in
the third quarter and in the first nine months. Order intake in value grew
by 8.2 per cent to EUR3.566 billion in the period January to September
2014. There was growth of 9.2 per cent in the third quarter, taking order
intake to EUR1.142 billion. As at 30 September 2014, the order book stood
at EUR806.4 million, which was 16.3 per cent higher than at the end of
2013.
The KION Group's third-quarter consolidated revenue came to EUR1.139
billion, which exceeded the high comparative prior-year figure (Q3 2013:
EUR1.082 billion) by 5.2 per cent. Over the nine-month period, revenue was
up slightly year on year at EUR3.372 billion (Q1-Q3 2013: EUR3.317
billion). The strong service business made a significant contribution.
Adjusted for currency effects of EUR39.7 million, the increase in revenue
was 2.9 per cent.
Earnings before interest and tax (EBIT[1]) climbed by 11.3 per cent to
EUR111.8 million in the third quarter. Over the nine-month period, EBIT[1]
was slightly higher than in the corresponding period of the previous year
at EUR308.7 million (Q1-Q3 2013: EUR300.9 million). The 22.1 per cent
decline in reported EBIT in the third quarter is primarily attributable to
the non-cash impairment of EUR32.0 million on the 30 per cent stake held in
Linde Hydraulics, which had a negative impact on the profit (loss) from
equity-accounted investments. An offsetting effect arose from the
revaluation of options in connection with Linde Hydraulics recognized in
the financial result.
Net income amounted to EUR58.0 million in the third quarter, which was
considerably more than in the corresponding period of last year (Q3 2013:
EUR11.0 million). This increase was due to improved operating performance
as well as improvements in the financial result reflecting in particular
refinancing effects following the IPO. Net income for the first nine months
of this year totalled EUR118.6 million, compared with EUR81.3 million in
the corresponding period of 2013. Earnings per share came to EUR1.19 for
the nine-month period (Q1-Q3 2013: pro-forma earnings per share of
EUR0.82).
Free cash flow rose from EUR50.7 million in the third quarter of 2013 to
EUR77.7 million in the same period of 2014. The principal reason for this
trend was the net cash provided by an improvement in operating activities.
Total expenditure on research and development (R&D) amounted to EUR28.8
million in the third quarter (Q1-Q3 2014: EUR88.0 million), compared with
EUR28.2 million in the corresponding quarter of last year (Q1-Q3 2013:
EUR85.5 million). R&D spending as a proportion of revenue therefore stood
at 2.5 per cent in the third quarter (Q1-Q3 2014: 2.6 per cent), following
2.6 per cent in the comparative quarter of last year (Q1-Q3 2013: 2.6 per
cent).
The number of employees at 30 September 2014 was 22,724, which was up by
2.0 per cent compared with the end of 2013.
KION GROUP AG joins the MDAX
On 22 September 2014, KION GROUP AG joined the MDAX - 15 months on from its
IPO. This promotion to the mid-cap segment will make KION shares even more
visible and appealing to investors. Before that, the shares had been part
of the small-cap SDAX index for about a year.
Outlook
The KION Group confirms the forecast provided in the 2013 Group management
report.
[1] EBIT adjusted for KION acquisition items and non-recurring items
Website: kiongroup.com/mediasite
Twitter: @kion_group
The Company
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
leading provider of industrial trucks in India. The KION Group is present
in more than 100 countries and, in 2013, employed over 22,000 people and
generated revenue of EUR4.5 billion.
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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Additional features:
Document: http://n.equitystory.com/c/fncls.ssp?u=BEFPHOTUQA
Document title: Download Press Release as PDF
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05.11.2014 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
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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: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover,
München, Stuttgart
End of News DGAP News-Service
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295083 05.11.2014
DGAP-News: KION Group generates broad-based growth in third quarter despite softer global economy (news with additional features)
| Source: EQS Group AG