Despite demand for industrial trucks falling by 3.1% to 947,000 units worldwide in 2012, the KION Group expanded its share of the market.
KION Group's orders grew by 0.4% to EUR4.700 billion (USD6.148 billion), compared to the previous year's EUR4.682 billion (USD6.124 billion). The group strengthened its position, with 2012 consolidated revenue increasing by 8.2% to EUR4.7 billion (USD6.148 billion). Adjusted earnings before interest and tax rose by 20.2% to EUR438 million (USD573 million).
"Structural improvements in recent years and increased capacity utilisation in our plants contributed to these very encouraging results," explains CEO Gordon Riske. "Our more flexible cost structure has enabled us to increase our profitability even more. We are now in a far better position to absorb the impact of economic weakness than in the past."
The group continued to expand its footprint in high-growth regions in 2012.
"The strategic partnership with Weichai Power has given yet another boost to our position as the leading non-domestic supplier in China. Coupled with our strong service business, this reduces our dependence on regional fluctuations in demand," Riske explains.
KION's partnership with Weichai opens up additional market opportunities in Asia. In December 2012, Weichai Power became an anchor investor with a 25% stake in KION Holding 1 GmbH by way of a capital increase, while also acquiring a 70% controlling interest in Linde Hydraulics
(Forkliftaction.com News #581). The two companies are co-operating closely on industrial trucks and hydraulic drive technology.
In April 2012, KION set up KION South Asia Pte Ltd in Singapore
(Forkliftaction.com News #562) to tap the huge potential of the markets in South and South East Asia. The new company is supporting the expansion of the local sales and service networks of the Linde, STILL and Baoli brands.
In November 2012, the KION Group acquired the outstanding shares in the India-based Voltas Material Handling Pvt Ltd
(Forkliftaction.com News #590). It is now the sole owner of Voltas Material Handling.
The KION Group has also strengthened its presence in the South American market. Since the third quarter of 2012, KION South America has been manufacturing forklifts and warehouse technology for the regional markets of the Linde and STILL brands in a completely new factory in Indaiatuba/São Paulo, Brazil. By facilitating cross-brand cooperation and pooling production in São Paulo, KION can leverage synergies and respond more flexibly to regional customer requirements.
The group has also expanded the sales and service organisations of the Linde and STILL brands in Eastern Europe
(Forkliftaction.com News #558).
The KION Group - comprising the six brands Linde, STILL, Fenwick, OM STILL, Baoli and Voltas - is Europe's market leader in industrial trucks. The Linde and STILL brands serve the premium segment worldwide. Fenwick is the largest supplier of materials handling products in France, while OM STILL is a market leader in Italy. The Baoli brand focuses on the economy segment, and Voltas is one of the two market leaders in India.
KION employed more than 21,000 people in 2012. The group expended EUR120 million (USD157 million), or 2.5% of its 2012 revenue on research and development. KION companies were also granted 63 patents and filed 96 new patent applications in 2012.
KION expects demand to recover slightly in 2013. Based on current macroeconomic forecasts and in view of past market performance, the group predicts an average annual growth rate of about 4% the next five years.