Hubertus Krossa, Kion Group CEO

The Kion Group outperformed the global forklift market in 2007 with a 13% increase in new vehicle orders. According to Kion, the global forklift market grew to over 950,000 new vehicle orders in 2007, 11% higher than in 2006.

Hubertus Krossa, group CEO, says all three of the company's forklift brands contributed to the growth in new orders.

Group net sales grew 10% from EUR3.909 billion (USD5.731 billion) in 2006 to EUR4.312 billion (USD6.323 billion) in 2007.

Net sales for the Linde brand rose 8% from EUR2.521 billion (USD3.697 billion) in 2006 to EUR2.726 million (USD3.997 billion) in 2007. The 386 series electric counterbalanced forklift with load capacities of 1.2 to 2 tonnes, introduced in 2006, was popular with end-users.

For the Still brand, the new diesel and LPG RX70 forklift which boasts of low fuel consumption contributed to net sales, growing 12.6 % from EUR1.260 million (USD1.848 billion) in 2006 to EUR1.419 million (USD2.081 billion) in 2007.

OM, which sold well in Eastern Europe, saw its net sales jump 17.4% from EUR305 million (USD447 million) to EUR358 million (USD525 million).

Kion CFO Nedim Cen says the group's targets under the GoIPO program were achieved or exceeded in 2007. GoIPO is Kion's synergy and efficiency improvement program to prepare the group for a stock market listing. Kion was acquired by Kohlberg Kravis Roberts (KKR) and Goldman Sachs from Linde AG in 2006 (Forkliftaction.com News #285).

"In 2008, the program will deliver additional enhancements, further improve processes across the group and increase efficiency .... To build on our leading position in the industry in terms of size and profitability," Cen says.

The GoIPO program aims to generate synergies in sales and service, purchasing, production and costs among the three forklift brands to boost the group's profitability.

Group earnings before tax and amortisation rose 31% from EUR244 million (USD358 million) in 2006 to EUR321 million (USD471 million) in 2007.

Kion employed 1,000 new people in 2007 and now has 21,086 employees, over 13,000 for Linde, over 6,600 for Still and 1,245 for OM.

Gordon Riske will succeed Hubertus Krossa as CEO of Kion Group on 23 April 2008. Krossa will remain with the group as advisor and support KKR in Germany (Forkliftaction.com News #310).