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Jungheinrich Maintains Upward Trend


Recovery of the Material Handling Equipment Market Remains Dynamic; Incoming Orders and Production Output Post Strong Growth; Sales and Earnings Trend Benefit from Increased Plant Capacity Utilization

The Jungheinrich Group maintained the upward trend witnessed in the first half of 2010, closing the third quarter of 2010 with significant gains in incoming orders, sales and earnings. The company’s business performance benefited from the global economy’s progressive improvement, which again enabled the material handling equipment industry to record substantial increases vis-à-vis the market volume a year earlier, which was relatively small.

The market’s dynamic global demand for material handling equipment carried into the third quarter of 2010. Demand in the third quarter of 2010 climbed by 41 per cent compared to the year-earlier period. Accordingly, after nine months, the world market had cumulatively expanded by about 47 per cent to 576.9 thousand trucks (prior year: 393.3 thousand units). All regions participated in this enlargement, albeit recording extremely different growth rates. Asia posted the strongest gain, expanding by 62 per cent. China made a disproportionately large contribution, growing by 79 per cent. By the end of the nine-month period, the European market volume had increased by a total of 30 per cent, experiencing accelerated growth of 38 per cent in the third quarter of 2010. Eastern Europe made a disproportionately large contribution, posting a gain of 134 per cent. In this context, however, account must be taken of the fact that the latter’s market had collapsed by 77 per cent last year. Western Europe, which had recorded a rise of 20 per cent after nine months, achieved a rate of increase of roughly 25 per cent in the third quarter of 2010, recovering further. The North American market also recovered substantially, expanding by 32 per cent in the first nine months of the year.

In the third quarter of 2010, the value of incoming orders, encompassing all business areas, advanced by 16 per cent to 475 million euros (prior year: 408 million euros). This resulted in a cumulative increase of 13 per cent to 1,390 million euros after nine months (prior year: 1,227 million euros).

Production volume, which tracked the substantial rise in incoming orders with a lag, rose by 24 per cent to 15.5 thousand trucks in the third quarter of 2010 (prior year: 12.5 thousand units). After nine months, production output had thus climbed by a cumulative 17 per cent to 42.8 thousand forklifts (prior year: 36.6 thousand units).

Net sales, which benefited from the high production output, rose by 14 per cent to 458 million euros in the third quarter of 2010 (prior year: 402 million euros). As a result, consolidated net sales had improved cumulatively by approximately 5 per cent to 1,291 million euros after nine months (prior year: 1,232 million euros). All business areas participated in this sales growth. New truck business, which was 4 per cent down on the year-earlier figure by the middle of the year, posted a strong gain, advancing by 5 per cent. In sum, the short-term hire and used equipment business increased by about 7 per cent. After-sales services recorded a cumulative growth rate of over 4 per cent.

Operative earnings before interest and taxes (EBIT) improved to 26.5 million euros in the third quarter of 2010 (prior year: -4.1 million euros). The corresponding return on sales climbed to 5.8 per cent (prior year: -1.0 per cent). By the end of the first nine months, cumulative earnings had risen to 64.2 million euros (prior year: -18.9 million euros). This enabled the comparable return on sales after three quarters to reach 5.0 per cent (prior year: -1.5 per cent). Net income recorded disproportionately strong growth in the third quarter of 2010, advancing to 23.6 million euros (prior year: -5.2 million euros). A major special item of 2.1 million euros stemming from the re-measurement of tax loss carry forwards had an earnings-enhancing effect. Cumulatively, net income was up by 48.4 million euros (prior year: -20.8 million euros). On this basis, earnings per preferred share for the nine-month period amounted to 1.45 euros (prior year: 0.58 euros).

In view of the market's dynamic development in the first nine months, Jungheinrich expects the world market to expand by roughly 40 per cent to more than 750 thousand trucks in 2010. Says Hans-Georg Frey, Chairman of the Board of Management of Jungheinrich AG: “Our company’s business performance will continue to be characterized by consolidation, expansion and earnings improvements until the end of the year. Demand growth in new truck business will continue to be of decisive importance to plant capacity utilization and the associated contribution to earnings in this respect. The fact that the enlargement of the European market—which remains our major sales region—has accelerated in the meantime will be helpful.”

Against the backdrop of the increase in demand witnessed over the course of the year, Jungheinrich is raising its forecasts and now expects incoming orders to advance to some 1.85 billion euros and consolidated net sales to climb to significantly more than 1.75 billion euros. Building on this and taking account of progress made in consolidation, the Jungheinrich Group is likely to generate operative earnings before interest and taxes (EBIT) in excess of 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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