KION income surges in shrinking market

News Story
- 1 Aug 2019 ( #934 ) - Frankfurt, Germany
2 min read
Following a strong start to the year, the KION Group maintained its path of profitable growth over the course of the first half of 2019. In a challenging market environment, consolidated revenue for the first six months saw a significant year-on-year increase of 12.6% percent to EUR4.364 billion (USD4.86 billion).

KION attributes a significant improvement in earnings to the fact that operational challenges caused by bottlenecks at suppliers to the industrial truck segment in 2018 had been largely resolved, but also to a modest rise in the price of materials and the relatively small increase in selling expenses and general administrative expenses.

Net income for the period surged by 47.7% percent to EUR218.3 million (USD243.3 million) on the back of the good operating performance.

Order intake for the period January to June amounted to EUR4.197 billion (USD4.677 billion), a modest year-on-year fall of 2.6%. However, the company points out that order intake in the supply chain solutions segment had been exceptionally strong in the first half of 2018, primarily thanks to the project business.

Looking more broadly, KION notes that in the first half of 2019, the global market for industrial trucks was unable to replicate the growth seen in previous years. This was due in particular to current economic uncertainties but also to the impact of ongoing trade disputes, the growing levels of debt in emerging and developing economies, and the possibility of a no-deal Brexit.

The number of new trucks ordered worldwide fell by 5.2% compared with the first half of 2018 to 759.500. New orders decreased by 7% in the EMEA region. The Americas region saw a significant year-on-year decline of 14.2%. Only the APAC region registered an increase in the first six months of 2019, albeit of just 0.8%.

According to the KION Group's estimates, the trend toward warehouse automation and toward sorting solutions and automated goods transport is continuing and it generated strong demand in the market for supply chain solutions. This trend was further bolstered by capital investment in connection with multichannel and e-commerce strategies. A growing number of businesses invested in the expansion and optimisation of their warehouse and logistics capacities and in automated warehouse systems that include not only solutions for individual processes, such as picking and packing, but also fully integrated end-to-end solutions.

"We recorded significant revenue growth and a very good operating profit in the first half of 2019," says Gordon Riske, chief executive officer of KION Group AG. "This sharp rise in earnings is particularly pleasing in light of the increasingly challenging conditions in the market. The good results for the first half of the year show that the KION Group remains on the right track. However, the headwinds from diminishing global trade, a slowdown in capital expenditure worldwide, political uncertainties, and trade disputes are increasing."
Jungheinrich records ‘resilient’ results
Jungheinrich records ‘resilient’ results 16 Aug 2024 - Hamburg, Germany - 1 min read
KION narrows revenue forecast
KION narrows revenue forecast 8 Aug 2024 - Frankfurt, Germany - 1 min read
Kalmar makes stock market debut
Kalmar makes stock market debut 4 Jul 2024 - Helsinki, Finland, Finland - 1 min read
Previously about:
KION narrows revenue forecast News Story - 8 Aug 2024 - Frankfurt, Germany - 1 min read
Linde brings two new models to US market News Story - 4 Jul 2024 - Summerville, SC, United States - 1 min read
Kion to manufacture FoxBots News Story - 9 May 2024 - Summerville, SC, United States - 1 min read
Do you have materials handling news? Submit your news here

PREMIUM business

RAEDER-VOGEL
Innovative high-quality wheels and castors for the forklift industry.

It’s the year 2000. You’re in front of a boxy beige desktop waiting for the screeching ramblings of your dial-up to reach its finale. You go to Yahoo!, MSN, or maybe AOL, and start the mind-numbing process of finding your very specific needle in the digital haystack. And with web pages loading one image at a time, patience isn’t just a virtue – it’s a requirement!

As clumsy as this early iteration seems now, this technology was the great enabler that allowed Forkliftaction to connect to the industry across the globe.  

To everyone who has connected with Forkliftaction in the past 25 years, thank you for your contribution to our success! We feel deeply touched by your words of encouragement.

What has Forkliftaction meant to you? Drop us a line.

Words of support …

I know I can count on them. They give valuable suggestions on the campaign planning, and to publish content is as easy as abc, as they take care of the material layout and check links. This is a great support.

Annalisa Castellini, Marketing Manager

Are you recruiting? Find your ideal candidate among a diverse range of materials handling professionals:

Forkliftaction's JOB MARKET

It’s the year 2000. You’re in front of a boxy beige desktop waiting for the screeching ramblings of your dial-up to reach its finale. You go to Yahoo!, MSN, or maybe AOL, and start the mind-numbing process of finding your very specific needle in the digital haystack. And with web pages loading one image at a time, patience isn’t just a virtue – it’s a requirement!

As clumsy as this early iteration seems now, this technology was the great enabler that allowed Forkliftaction to connect to the industry across the globe.  

To everyone who has connected with Forkliftaction in the past 25 years, thank you for your contribution to our success! We feel deeply touched by your words of encouragement.

What has Forkliftaction meant to you? Drop us a line.

PREMIUM business

F. Uchiyama
Global exporter of used forklift and construction machinery, servicing over 80 countries.

Are you recruiting? Find your ideal candidate among a diverse range of materials handling professionals:

Forkliftaction's JOB MARKET

It’s the year 2000. You’re in front of a boxy beige desktop waiting for the screeching ramblings of your dial-up to reach its finale. You go to Yahoo!, MSN, or maybe AOL, and start the mind-numbing process of finding your very specific needle in the digital haystack. And with web pages loading one image at a time, patience isn’t just a virtue – it’s a requirement!

As clumsy as this early iteration seems now, this technology was the great enabler that allowed Forkliftaction to connect to the industry across the globe.  

To everyone who has connected with Forkliftaction in the past 25 years, thank you for your contribution to our success! We feel deeply touched by your words of encouragement.

What has Forkliftaction meant to you? Drop us a line.