Jungheinrich AG has started its 50th year in fine fashion, posting higher sales and net income in the first quarter of 2003.

According to the company's first quarter report, released on May 13, sales rose two percent from EUR351.7 million (USD406.4 million) to EUR357.8 million (USD413.5 million), thanks to increased European demand. Net income increased 23 percent from EUR7 million (USD8 million) to EUR8.6 million (USD9.9 million).

The report said 2003 would be a year of consolidation, with restructuring of Jungheinrich's production sites already underway.

The company announced in February that it would close its IC forklift factory in Leighton Buzzard, United Kingdom, and move production to Moosburg, Germany, by mid-2004. Jungheinrich's Argentan, France, facility is also under scrutiny.

"(With) a slight improvement in economic growth in Europe expected in the second half, Jungheinrich anticipates a widespread stabilisation of sales for materials handling equipment for the year," the company said.