KION, the world’s second biggest forklift maker, posted record revenue of EU11.4 billion (USD12.46 billion) for 2023 despite a decline in demand for industrial forklifts and supply chain solutions.

Revenue was up 2.7% on the previous year.

“We significantly improved profitability in both our business segments and for KION,” says KION chief executive Rob Smith. 

“The substantial progress in our results, the commercial and operational agility measures and the changes of our organisational and leadership setup form a strong basis for our future business success.”

Revenue development differed across both operating segments.

The industrial trucks and services segment grew by 15.3% percent to EU8.480 billion (USD9.24 billion), mainly driven by higher production levels as well as price increases implemented in the previous year. The service business also grew.

Revenue in the supply chain solutions segment declined by 21.3% to EU2.997 billion (USD3.25 billion), mainly driven by subdued customer demand in the project business over the previous quarters.

The increased cost of capital had a negative impact on customers’ investment decisions for the construction of new warehouse space and therefore also on investments in warehouse automation.

The stable and higher-margin service business also grew in the reporting period.

The company forecast “slight growth” in the market for new industrial trucks in 2024 based on order numbers.

“This will be driven mainly by an anticipated upturn in the APAC and EMEA regions, whereas demand is expected to decrease in the Americas region,” KION says.

“The continuing trend toward automation and the anticipated fall in the cost of capital over the course of the year are expected to make companies more likely to invest in warehouse automation.

“Meanwhile, the predicted sustained demand for mobile automation is set to boost the market for supply chain solutions.

“The KION Group believes that the positive medium- and long-term trends in the supply chain solutions market remain intact.”