Business News
Jungheinrich Closes the First Quarter of 2008 Successfully
Wednesday 14. May 2008 - Incoming orders and net sales increased significantly Earnings improved
The Jungheinrich Group got off to a good start in the year underway, improving net sales in the first quarter of 2008 by more than 8 per cent year on year to 491 million euros (prior year: 456 million euros). Earnings before interest and taxes (EBIT) advanced by 13 per cent to 29.6 million euros (prior year: 26.2 million euros).
In the first quarter of 2008, the value of incoming orders rose by 9 per cent to 553 million euros (prior year: 506 million euros). Orders on hand in the new truck business, which reflect a higher share of third-party products, totalled 383 million euros as of March 31, 2008roughly 25 per cent up on the 307 million euros recorded in the same period last year. The range of orders was more than four months.
All of the business areas contributed to the 8 per cent growth in net sales achieved in the first quarter. Posting a rate of increase of 14 per cent, the short-term hire and used equipment business made the largest contribution. The operating return on sales was 6.0 per cent (prior year: 5.8 per cent). In the first quarter, earnings after taxes (net income) rose by a disproportionately high 32 per cent to 18.1 million euros (prior year: 13.7 million euros) owing to the lower tax ratio. Earnings per share grew to 0.53 euros (prior year: 0.40 euros).
The economic and market conditions for material handling equipment remained stable in the first quarter of 2008, despite the world financial crisis: Global demand for material handling equipment continued to rise, with the exception of North America. From January to March, in terms of units, the global market expanded by a moderate 7 per cent to 239.9 thousand trucks (prior year: 224.7 thousand units). Asia accounted for an above-average share, or 20 per cent, of this advance. China posted a 29 per cent rise. Growth recorded by Europe amounted to 5 per cent. The Eastern European market continued to display dynamic growth, posting a 26 per cent increase. The North American market experienced a 9 per cent decline.
By March 31, 2008, the workforce had expanded by 224 to 10,402 staff members (December 31, 2007: 10,178 employees). A substantial portion of this rise was attributable to the expansion of foreign sales companies, above all in the growth markets of Russia and China. At the reporting cut-off date, 5,588 employees (54 per cent) were working outside Germany.
Jungheinrich expects the worldwide material handling equipment market to expand to some 1 million trucks overall this year (prior year: 950 thousand units). Having gotten off to a good start in the first quarter, Jungheinrich anticipates that its business volume will grow overall, on the strength of a rise in incoming orders, to over 2.2 billion euros (prior year: 2.1 billion euros) and that consolidated net sales will climb to more than 2.1 billion euros (prior year: 2.0 billion euros).
At the 2008 CeMAT, the international lead intralogistics fair in Hanover (May 27 to 31, 2008), Jungheinrich will focus on energy efficiency and drive technology. In so doing, the company plans to provide the sector with further stimulus.
Jungheinrich ranks among the worlds leading companies in the material handling equipment, warehousing and material flow engineering sectors. Jungheinrich is a logistics service provider with manufacturing operations, which offers its customers a comprehensive range of forklift trucks, shelving systems and services covering the entire field of intralogistics. Jungheinrich shares are traded on all German stock exchanges.