Quarterly Report • Nov 10, 2020
Quarterly Report
Open in ViewerOpens in native device viewer
AS OF 30 SEPTEMBER 2020
| Q3 | Q3 | Q1– Q3 | Q1– Q3 | |||||
|---|---|---|---|---|---|---|---|---|
| Jungheinrich Group | 2020 | 2019 | Change % | 2020 | 2019 | Change % | Year 2019 | |
| Incoming orders | units | 26,800 | 27,100 | – 1.1 | 80,700 | 94,100 | – 14.2 | 121,900 |
| € million | 921 | 949 | – 3.0 | 2,732 | 3,014 | – 9.4 | 3,922 | |
| Orders on hand 30 Sep/31 Dec | € million | – | – | – | 833 | 957 | – 13.0 | 787 |
| Revenue | € million | 922 | 1,016 | – 9.3 | 2,723 | 2,972 | – 8.4 | 4,073 |
| Earnings before interest and income taxes (EBIT) | € million | 55.0 | 72.2 | – 23.8 | 150.2 | 197.3 | – 23.9 | 263 |
| EBIT return on sales (EBIT ROS)1 | % | 6.0 | 7.1 | – | 5.5 | 6.6 | – | 6.4 |
| Earnings before taxes (EBT) | € million | 52.0 | 66.8 | – 22.2 | 133.8 | 183.3 | – 27.0 | 242 |
| EBT return on sales (EBT ROS)2 | % | 5.6 | 6.6 | – | 4.9 | 6.2 | – | 5.9 |
| Profit or loss | € million | 36.6 | 48.0 | – 23.8 | 96.3 | 132.0 | – 27.0 | 177 |
| Earnings per preferred share | € | 0.36 | 0.48 | – 25.0 | 0.96 | 1.31 | – 26.7 | 1.75 |
| Employees 30 Sep/31 Dec | FTE3 | – | – | – | 18,019 | 18,404 | – 2.1 | 18,381 |
1 EBIT/revenue x 100
2 EBT/revenue x 100
3 FTE = full-time equivalents
| Incoming orders in thousand units |
Q1– Q3 2020 |
Q1– Q3 2019 |
Change % |
|---|---|---|---|
| World | 1,146 | 1,113 | 3.0 |
| Europe | 324 | 364 | – 11.0 |
| thereof Eastern Europe | 59 | 64 | – 7.8 |
| Asia | 586 | 498 | 17.7 |
| thereof China | 456 | 351 | 29.9 |
| North America | 175 | 183 | – 4.4 |
| Other regions | 61 | 68 | – 10.3 |
Source: WITS (World Industrial Truck Statistics)
The global market volume for material handling equipment increased by 3 per cent year-on-year from January to September 2020. This corresponds to 33 thousand units. This positive development was driven by a strong increase in demand in China for all product segments (plus 105 thousand units). With a slight increase in the third quarter of 2020 (1 per cent against the third quarter of 2019), development in the European market was significantly better than in the second quarter of 2020 (minus 28 per cent against the second quarter of 2019). The spread of the coronavirus reached its initial peak here between April and June. As a result, after the first nine months of the year, orders in Europe were down 11 per cent in comparison with the previous year. All product segments contributed to this. In North America, the downturn in orders for IC engine-powered trucks was responsible for the market decline.
The global market volume for the warehousing equipment product segment climbed 4 per cent against the same period of the previous year. This was driven by very strong growth in China. The increase of 6 per cent in demand for IC engine-powered trucks was due to higher orders from China. The 5 per cent decrease in global market volume for batterypowered counterbalanced trucks resulted primarily from declining demand in Europe.
Incoming orders in the new truck business, based on units, which includes orders for both new forklifts and trucks for short-term rental, totalled 80.7 thousand trucks in the first nine months of the year, down 14 per cent on the corresponding figure in the previous year (94.1 thousand units). In addition to the decrease in demand in Europe – Jungheinrich's core market – caused by the coronavirus, the active reduction of orders for Jungheinrich's own short-term rental fleet also affected figures. Additionally, Jungheinrich did not benefit from the strong market growth in China.
By value, incoming orders for all business fields – new truck business, short-term rental and used equipment, and aftersales services – came to €2,732 million as a result, which is 9 per cent below the previous year's figure of €3,014 million.
Orders on hand for new truck business fell to €833 million as of 30 September 2020, which is €124 million or 13 per cent lower than the previous-year figure (€957 million). Compared with orders on hand of €787 million as of year-end 2019, it nevertheless represents an increase of €46 million or 6 per cent.
| in € million | Q1– Q3 2020 |
Q1– Q3 2019 |
Change % |
|---|---|---|---|
| New truck business | 1,481 | 1,782 | – 16.9 |
| Short-term rental and used equipment |
439 | 470 | – 6.6 |
| After-sales services | 796 | 795 | 0.1 |
| "Intralogistics" segment | 2,716 | 3,047 | – 10.9 |
| "Financial Services" segment |
826 | 863 | – 4.3 |
| Reconciliation | – 819 | – 938 | – 12.7 |
| Jungheinrich Group | 2,723 | 2,972 | – 8.4 |
One main cause of the lower Group revenue in the reporting period was the downturn in revenue in the new truck business of €301 million due to significantly lower incoming orders in comparison with the previous year. Despite the difficult conditions of partially restricted access to customer locations caused by the coronavirus and following steep declines in April and May, after-sales services remained stable overall with revenue amounting to €796 million in the first nine months of 2020 (previous year: €795 million).
The Jungheinrich Group generated earnings before interest and income taxes (EBIT) of €150.2 million (previous year: €197.3 million) in the period from January to September 2020. The EBIT return on sales (EBIT ROS) amounted to 5.5 per cent, compared with 6.6 per cent in the same period last year. EBIT was primarily affected by the noticeable decline in plant capacity utilisation in the reporting period. It also contained expenses from impairment losses on capitalised development expenses of €18 million (previous year: €12 million), from additions to provisions to pay employees a coronavirus bonus in the amount of €13.5 million and from impairment losses on goodwill of €5 million.
The financial loss totalled €16.5 million (previous year: loss of €14.0 million) in the reporting period and was particularly influenced by the results from the measurement of the securities and derivatives in the special fund. A loss was recorded here in the period under review; however, a profit was recorded in the same period of the previous year. Earnings before taxes (EBT) declined to €133.8 million at the end of the first nine months (previous year: €183.3 million). EBT return on sales (EBT ROS) came to 4.9 per cent (previous year: 6.2 per cent). Profit or loss in the period January to September 2020 stood at €96.3 million (previous year: €132.0 million). Earnings per preferred share were €0.96 (previous year: € 1.31).
As of 30 September 2020, net credit stood at €66 million (31 December 2019: net debt of €172 million). The €238 million improvement resulted from the lower capital expenditure, the decreased supply of new trucks to the short-term rental fleet and the reduction in working capital for operational reasons. The development of working capital reflected the enhanced receivables management and the increase in safety stocks for athe inventories of production plants caused by the coronavirus.
In line with the resolution passed by the virtual Annual General Meeting on 27 August 2020 in the third quarter, a dividend for the 2019 financial year was paid of €0.46 (previous year: €0.48) per ordinary share and €0.48 (previous year: €0.50) per preferred share. This represents a total payment of €48 million.
In a nine-month comparison, the number of employees in the Jungheinrich Group decreased by 385. This reduction was largely in the sales organisation. Due to the fall in capacity utilisation, Jungheinrich employed 215 temporary workers at the end of the reporting period, 307 temporary workers fewer than as of 30 September 2019.
The global recovery in demand in the material handling equipment market this year is mainly driven by China. The recovery in demand in the third quarter of 2020 in Jungheinrich's core market of Europe, however, is now being impaired by the second wave of the coronavirus. The extent of this impairment is not yet forseeable. Overall, the Board of Management of Jungheinrich AG thus expects the global market volume to be roughly on the previous year's level, with vastly varying development in the different regions.
In light of better market and business development than was anticipated in summer, Jungheinrich raised the forecast for the 2020 financial year and published its changed forecast in an ad-hoc release on 21 October 2020.
For the full year 2020 the Board of Management is expecting incoming orders of between €3.5 billion and €3.7 billion (previous forecast: €3.4 billion to €3.6 billion). Group revenue is also expected to fall between €3.5 billion and €3.7 billion (previous forecast: €3.4 billion to €3.6 billion). According to current estimates, EBIT should be between €180 million and €230 million in 2020 (previous forecast: €130 million to €180 million). A range of 5.1 per cent to 6.2 per cent is expected for the EBIT return on sales (previous forecast: 3.8 per cent to 5.0 per cent). EBT is expected to amount to between €155 million and €205 million (previous forecast: €105 million to €155 million). EBT return on sales should come to between 4.4 per cent and 5.5 per cent (previous forecast: 3.1 per cent to 4.3 per cent).
It is also expected that Jungheinrich will not report net debt at the end of the financial year, but will reach a net credit position of well over €50 million (previous forecast: net debt of significantly less than €50 million). The ROCE for the 2020 financial year should be between 10 per cent and 14 per cent (previous forecast: between 8 per cent and 12 per cent).
Jungheinrich expects a slight increase in its market share in Europe against the 2019 financial year; this remains unchanged compared to the previous expectations (2019: 20.2 per cent).
This forecast is based on the assumption that the ongoing COVID-19 pandemic will not lead to further extensive lockdowns or even to plant closures before the end of the year and that the supply chains will remain largely intact to maintain production. The lower forecast threshold already takes into account certain negative developments currently affecting customers and suppliers caused by the coronavirus.
Unforeseeable developments may cause the actual business trend to differ from expectations, assumptions and estimates of the management of Jungheinrich that are reproduced in this interim statement. Factors that may lead to such deviations include changes in the economic environment – including the consequences of the further development of the COVID-19 pandemic – within the material handling equipment sector, as well as changes to exchange rate and interest rates. No responsibility is therefore taken for the forward-looking statements in this interim statement.
Hamburg, 10 November 2020
Jungheinrich Aktiengesellschaft The Board of Management
10 November 2020 Interim statement as of 30 September 2020
26 March 2021 Balance sheet press conference
26 March 2021 Analyst conference
7 May 2021 Interim statement as of 31 March 2021
11 May 2021 2021 Annual General Meeting
14 May 2021 Dividend payment
12 August 2021 Interim report as of 30 June 2021
10 November 2021 Interim statement as of 30 September 2021
Friedrich-Ebert-Damm 129 22047 Hamburg Germany Phone: +49 40 6948 -0 Fax: +49 40 6948 -1777 www.jungheinrich.com [email protected]
Securities identification numbers: ISIN DE0006219934, WKN 621993
4
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.