Jungheinrich AG ended 2002 on a positive profit note, despite selling less forklifts.

Group sales decreased 4.8 percent from EUR1.551 billion (USD1.67 billion) to EUR1.476 billion (USD1.59 billion) in the year to December 31, but net income rose 38.5 percent to EUR54 million (USD54.17 million), compared to EUR39 million (USD42 million) in 2001.

Jungheinrich blamed the sales deflation on a "decline in market volume for the industrial truck industry in Europe".

At the end of 2002, Jungheinrich employed 9,248, 40 less than in 2001, of whom 4,821 (52.1 percent) worked outside Germany. While the continued expansion of direct sales in Germany and abroad led to the appointment of new engineers and technical consultants, the production, administration and service workforces decreased.

Jungheinrich chairman Cletus von Pichler said it was difficult to predict the company's expected performance for 2003, due to continued economic uncertainty.

"We are building on a significant stabilisation of market volume within our branch of the industry in Europe," he said.

"Taking this into account, and relying on our expanded direct sales network, we expect an increase in the number of orders and improved sales during the year."