Start moderately Jungheinrich 2013 financial year
on September 1, 2013
The Group Jungheinrich It recorded a moderate start to the fiscal year 2013. Net sales and earnings are below the exceptional levels seen the previous year, due to low demand in the last quarter of 2012. Conversely, the value of the incoming orders showed a positive, increasing year by year development. Both the volume and the scope of the orders have been clearly larger than the figures achieved at the end of December 2012. With these data as a backdrop, Board confirms its forecast for the fiscal year in course. Regardless of the loose recovery of the world economy, the global demand for materials handling equipment has been stable during the first quarter of 2013, reached 247,2 thousand forklifts (previous year: 246.1 thousand units). The markets showed an uneven regional development. In Europe, Jungheinrich main market, demand fell around 4%. This was due to a decline in demand in Western Europe by 6%; on the other hand, the volume of Eastern European market increased 8%. In Asia, demand declined slightly, with a fall of 2%. On the other hand, the North American market experienced a substantial increase, driven by growth of almost 10%.
The value of the inbound orders of the company, covering all areas of business, was slightly higher, 587 million euros (previous year: EUR 580 million). Businesses for rent short term and used equipment, logistics systems business and the after-sales service, reported encouraging earnings. On March 31, 2013, orders in course of new trucks business amounted to EUR 381 million, EUR 29 million, or 8% more than the figure of 352 million euros achieved in the same period of last year. The increase compared with 298 million euros in value by the end of 2012 amounted to 83 million euros, or what is the same, 28%. Orders obtained for almost five months constitute the basis for establishing a solid business trend for the remainder of the year in course.
Due to corrections made in the policies of fiscal balance and changes in its reporting to increase the transparency of the reporting from 1 January 2013 onwards, Jungheinrich adjusted comparable figures for the first quarter of 2012 and the 2012 financial year. On a comparable basis, consolidated net sales fell nearly 4% to 514 million euros (previous year: EUR 533 million), as a result of the significant and disproportional fall in net sales of new trucks business. In this context, the fact that net sales from the comparable quarter of last year were unusually high should be taken into account. While in Germany - the largest single market - net sales fell 5% to 141 million euros (previous year: EUR 149 million), foreign net sales fell 3% to 373 million euros (previous year: 384 million euros). The foreign ratio was 73% (previous year: 72%).
The first quarter of 2013, the Jungheinrich Group generated an EBIT of 36.0 million euros (previous year: 40.8 million euros). In this respect, the fact that the EBIT was relatively strong during the first quarter of 2012, due to the good level of production of the factories, motivated also by the high level of incoming orders in the last quarter of 2011 should be taken into account. The minor dimension of production plants, from January to March 2013, was not offset completely with the stable growth recorded by short term rental, used equipment, and after-sale services. The return on sales was 7% (previous year: 7.7%). Net income decreased to 21.9 billion euros (previous year: 25.4 million euros). Therefore earnings per preferred share amounted to 0.67 euros in the first quarter of 2013 (previous year: EUR 0.78).
With 2,754 million euros, the total balance of the company as of March 31, 2013 hardly presented variations compared with the level at the end of the financial year 2012 (31/12/2012: 2.759 million euros). The equity ratio reached 28.1% (31/12/2012: 27.3%). Tangible and intangible assets amounted to EUR 25 million to 379 million euros. This reflected the first consolidation of company logistics software ISA - Innovative Systemlösungen für die Automation GmbH, as well as investment projects of strategic capital for capacity expansion. With respect to other trends of the business by 2013, the company expects the global economy to record a moderate growth. Against this situation, the company anticipates that the size of the global market will show a stable development, presenting opportunities for a marginal growth. From a current perspective, the volume of European market should register a stable development. Jungheinrich has identified potential for growth in Asia, and the positive trend shown by the North American market is likely to continue. According to Hans-Georg Frey, Chairman of the Board of Jungheinrich AG: "assuming that the economy shows a content development, presenting opportunities to moderate for the rest of the year and a volume of stable market in Europe and, on the basis of the growing trend in incoming orders that we have been observing since the beginning of the year, we anticipate that the orders reach the figure of 2.1 to 2.3 billion euros. Consolidated sales should be in a similar range. We confirm an estimate of our EBIT of between 165 and 175 million euros".