Despite a declining world market, Jungheinrich lifted net profit by 38 percent to EUR53.7 million (USD63 million) in 2002.

Jungheinrich chairman Dr Cletus von Pichler told the annual general meeting on June 3 that the world was "still in a disturbing state", with economic and political uncertainties dampening the investment climate.

"There is a lack of pioneering spirit, little motivation, and many people are concerned about the potential loss of their jobs," he said. "In these difficult times, the market for industrial trucks has not gone unscathed."

Nevertheless Jungheinrich, the world's fourth-largest forklift supplier, was optimistic that new growth was "just around the corner". The company's report said it expected more than five percent growth in warehousing technology for 2003.

Jungheinrich, which celebrates its 50th birthday in August, would this year invest EUR60 million (USD70.1 million) in developing new products and its international sales division, almost twice last year's budget.

"The year 2003 will be more difficult to master than 2002," Dr von Pichler said. "The year got off to a good start. Market volume has increased by four percent ... but this is not reflected in the order value, because the product mix has shifted from high price to low price equipment."

Dr von Pichler said it was difficult to give a forecast for 2003, even after five months.

"The uncertainty of the economic situation continues to delay the necessary investment decisions of our customers. A wait-and-see attitude helps no one," he said.