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Jungheinrich Maintains Upward Trend Successfully


Dynamic Recovery of the Material Handling Equipment Market/ Incoming Orders Post Strong Growth/Production Output Increased Significantly/Earnings Trend Improved Substantially

The Jungheinrich Group maintained its upward trend in the second quarter of 2010 and closed the first half of 2010 with increases in incoming orders, sales and earnings. One of the drivers was the world economy's sustained recovery, from which the material handling equipment sector benefited, posting strong gains over the relatively small market volume a year earlier.

Global demand for material handling equipment displayed dynamic development over the course of the year, climbing by some 54 per cent in the second quarter of 2010. Accordingly, the world market expanded by 50 per cent to 379.0 thousand trucks (prior year: 253.2 thousand units) in the first half of 2010. All regions participated in this enlargement, albeit recording extremely different growth rates. Asia posted the strongest gain, expanding by 77 per cent. China made a disproportionately large contribution, growing by 103 per cent. Europe's market volume advanced by a total of 27 per cent in the first six months of the year, accelerating in the second quarter by achieving a rate of growth of about 39 per cent. In the first half of 2010, Western Europe posted a gain of 18 per cent, while demand in Eastern Europe increased by 85 per cent. In this context, account must be taken of the fact that the latter's market volume had collapsed by 78 per cent last year. The North American market recorded a rise of 28 per cent.

In the first half of 2010, the value of incoming orders, encompassing all business areas, increased by roughly 12 per cent to 915 million euros (prior year: 819 million euros). This corresponded to a rise of 16 per cent to 482 million euros in the second quarter of 2010 (prior year: 414 million euros). Orders on hand in new truck business totalled 276 million euros as of June 30, 2010, which was 68 million euros, or 33 per cent, higher than the figure at the end of 2009.

Production volume, which tracked the substantial rise in incoming orders with a lag, increased by some 22 per cent to 14.6 thousand trucks in the second quarter of 2010 (prior year: 12.0 thousand units). Production output thus amounted to 27.4 thousand trucks in the first half of 2010 (prior year: 24.1 thousand units)—exceeding last year's comparable volume by nearly 14 per cent.

Net sales were up 7 per cent to 446 million euros in the second quarter of 2010 (prior year: 417 million euros) fully offsetting the shortfall in the first quarter of 2010. As a result, consolidated net sales posted marginal growth in the first half of 2010, rising to 833 million euros (prior year: 830 million euros). All business areas participated in this positive sales trend. New truck business experienced a significant recovery. The short-term hire and used equipment business expanded by a total of around 7 per cent. After-sales services recorded a cumulative growth rate of 4 per cent.

"After our company returned to profitability at the beginning of the year, earnings growth accelerated in the second quarter of 2010. The month of June was one of the major drivers. It was above all the strong net sales caused by the high level of incoming orders and an improved product mix as well as our significantly higher plant capacity utilization that led to a rise in earnings. Savings initiated last year and the efficiency programs also played a role. In addition, the expanding after-sales services business demonstrated its positive effect," explained Hans-Georg Frey, Chairman of the Board of Management. Operative earnings before interest and taxes (EBIT) increased to 25.7 million euros in the second quarter of 2010 (prior year: -12.0 million euros). Cumulative earnings improved to 37.7 million euros in the first half of 2010 (prior year: -14.8 million euros). The corresponding return on sales was 4.5 per cent by the middle of the year (prior year: -1.8 per cent).

Net income advanced to 16.5 million euros in the second quarter of 2010 (prior year: -12.0 million euros). On a cumulative basis, net income amounted to 24.8 million euros (prior year: -15.6 million euros). This results in 0.76 euros in earnings per preferred share for the first half of 2010 (prior year: -0.43 euros).

In view of the market's dynamic development in the first six months, Jungheinrich expects the world market to expand by over 30 per cent to significantly more than 700 thousand trucks in 2010. "In the second half of 2010, our company's business performance will continue to be characterized by consolidation, growth and earnings improvements. Demand growth in new truck business as well as plant capacity utilization and the associated contribution to earnings will be of decisive importance in this respect," says Hans-Georg Frey. Based on the revitalization of demand witnessed since the beginning of the year and the further improvement in framework conditions, Jungheinrich is raising its forecast, anticipating that incoming orders will rise to about 1.8 billion euros and that consolidated net sales will advance to approximately 1.75 billion euros. Building on this and taking account of progress made in consolidation, the Jungheinrich Group will generate operative earnings of between 60 and 80 million euros in 2010.

Jungheinrich ranks among the world’s leading companies in the material handling equipment, warehousing and material flow engineering sectors. The company is a service provider with manufacturing operations as well as an intralogistics solution provider, which offers its customers a comprehensive range of forklift trucks, shelving systems, services and consulting. Jungheinrich shares are traded on all German stock exchanges.

Please address press-related inquiries to:

Jungheinrich AG, Markus Piazza, Head of Corporate Communications
Phone: +49-40-6948-1550, Fax: +49-40-6948-1599,

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