KION's revised financial outlook
The KION Group is on an impressive recovery path and, according to provisional figures, recorded significant year-on-year improvements in all key performance indicators in the first half of 2021.
"The first six months of the year have been very successful for us," says Gordon Riske, group chief executive officer. "And we intend to continue benefiting from the recovery of the global market - despite the uncertainties caused by rising commodity costs and potential supply issues in procurement. We have laid solid foundations for this in terms of our technology, production capabilities, and financial strength."
First-half results include a 33.7% increase in the order intake, thanks to customers bringing forward their purchases in anticipation of global supply bottlenecks and significantly longer lead times.
Consolidated revenue was up 26.5%, with revenue growth in the Supply Chain Solutions (SCS) segment particularly pronounced at around 53%. In addition to the high overall volume of orders, this was because the segment worked through big-ticket orders for warehouse automation that had been placed in North America and Europe in 2020. The Industrial Trucks & Services (ITS) segment also saw a jump in its revenue, by nearly 15%. This was partly due to the pandemic-related restrictions on production in the prior-year period and to the resulting pent-up demand, particularly at the beginning of 2021.
"We are well on course for success once again - our revenue is up sharply and profitability has also recovered markedly. Following last year's pandemic-related decline, we are now edging close again to our medium-term target range for the adjusted EBIT margin of 10 to 12%," says chief financial officer Anke Groth.
While flagging improvements in its financial performance for the full year, KION notes that there is still uncertainty in the economic environment. "The KION Group continues to see risks, particularly in relation to changes in sales markets and commodity prices and in the availability of intermediate products," directors caution.