Jungheinrich raises forecast for the 2017 financial year

The Jungheinrich Group has reported a strong first half-year for 2017. Compared to the same period last year key performance, indicators  point towards significant growth. As a result of the positive development, the board of management has raised its forecast for the current financial year with regards to incoming orders and net sales, and has substantiated its EBIT expectations at the upper end of the forecast range.

Hans-Georg Frey, chairman of Jungheinrich’s board of management, “We are seeing positive results at the end of the first half of 2017. The new truck business is a significant driver for this increase in net sales, growing by a strong 22%. Production exceeded the previous year’s value by 12%. At 57,600 units, this is a new record for Jungheinrich. Because of this positive development and the good order situation, we have raised our forecast for the 2017 financial year. Incoming orders should be between €3.45 billion and €3.55 billion. The consolidated net sales should be somewhere between €3.35 billion and €3.45 billion. EBIT for the current year will, according to our estimations, be at the upper end of the range between €250 million and €260 million. With an order range of more than four months and the current dynamic market, particularly in Europe, we are looking forward to a positive second half of the year.”

The world market for material handling equipment performed very well from January to June 2017, with growth of 18%. Strong growth in the first quarter continued into the second quarter of 2017. The driving force behind the significant year-on-year increase in market volume was demand from the Chinese market, which soared by 41%. A sharp rise in orders for IC engine-powered counterbalanced trucks was behind these positive market developments. Demand in Europe rose by 12%, with Western Europe up by 9%  and Eastern Europe up by 27%, mostly because of the Russian market.

Global demand in the warehousing equipment product segment increased by      16%, which represents almost 42,000 forklifts. Some 40% of the increase is attributable to Asia, mainly China, and around 40% to Europe. The 15% increase in global market volume of battery-powered counterbalanced trucks was driven by greater demand from Europe (+17%) and above all by new orders from China (+34%). Three quarters of the enormous increase of 21% in demand for IC engine-powered trucks was due to significantly higher orders from China.

In the first half of 2017, incoming orders in new truck business, which include orders for both new forklifts and trucks for short-term hire, totalled 63,300 trucks, up 12% on the corresponding figure in the previous year (56.7 thousand trucks). By value, incoming orders for all business fields – new truck business, short-term hire and used equipment, and after-sales services – came to €1,750 million in the reporting period, which is 8% above the previous year’s figure of €1,626 million. Orders in hand for new truck business came to €708 million as of 30 June 2017, which is €37 million or 6% higher than the previous year (€671 million). 57,600 trucks were produced in the first six months of the current year. This is 12% more than in the first half of 2016 (51,500 trucks). Consolidated net sales of €1,634 million in the first half of 2017 was 14% higher than in the previous-year period (€1,431 million). Earnings before interest and taxes (EBIT) rose by 12% to €123.7 million in the first half of 2017 (previous year: €110.2 million1). Earnings before taxes (EBT) were €116.6 million in the first half of 2017 (previous year: €100.6 million1). This represents an increase of 16%.