Jungheinrich chairman Hans-Georg Frey

The Jungheinrich Group closed the 2016 financial year with significant increases in all key performance indicators. The main growth drivers were new truck business and logistics services.

New record highs were achieved in incoming orders, net sales, production and all earnings figures, with the trends continuing in the first two months of the current year as well.

Jungheinrich board chairman Hans-Georg Frey says the group stayed on course for growth in 2016. "For the first time, we surpassed the EUR3 billion (USD3.24 billion) mark in terms of both net sales and incoming orders. We outgrew our peer group and expanded our share of the global market.

"Jungheinrich is right on track towards achieving its strategic goal for 2020," he says.

The Jungheinrich Group continued to pursue its growth strategy with resolve in the financial year that just ended. The success of this strategy is reflected in the double-digit growth of incoming orders, net sales and EBIT. Furthermore, the company increased its share of the market the world over.

The annual result includes the contribution of MIAS, a specialist in stacker cranes and load-handling technology, which now forms part of the Logistics Systems Division. Net sales for that unit grew by 16% to EUR441 million (USD443 million), with slightly more than half of this growth attributed to MIAS.

Another source of growth was the acquisition of the dealership business in Chile.

Another highlight in the results was the joint venture for forklift rentals in the Chinese market established with Anhui Heli Co. Ltd., China's largest materials handling equipment manufacturer, in order to expand the short-term hire business.

Jungheinrich reports a 7% increase in the global materials handling equipment market in 2016. The driving force was the European market, which expanded by 13%. Following its severe collapse in the last few years, Russia returned to a course for growth (+37%). The Asian market recorded a commendable gain of 7%, with demand in China advancing by as much as 14%. The difference in growth rates was primarily caused by the disparate development of demand for IC engine-powered counterbalance trucks. North America's market volume was up 2% on the year-earlier level.

Jungheinrich expects the world materials handling equipment market to continue growing in 2017, albeit losing some momentum over last year. European market volume should increase. It anticipates a rise of a mid-range, single-digit percentage and thus less momentum than in 2016. Asia may well post robust market growth. Strong demand for electric materials handling equipment should persist in the North American market. The shrinkage of the region's IC engine-powered counterbalance truck market may be cushioned if the economy posts a respectable performance.