Gordon Riske

German forklift manufacturer Kion Group continued to grow during the first half of 2008, despite spiralling raw materials and transportation costs.

The company's revenue increased 9.3% from EUR2.07 billion (USD2.9 billion) in 2007 to EUR2.26 billion (USD3.19 billion) for the same period in 2008.

Gordon Riske, chief executive officer of Kion, says the company managed to offset the sharp rises in costs by improving on its efficiency as part of the GoIPO program.

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 ahead of a planned public float.

"We increased our prices and realised synergies not previously explored through our multi-brand strategy," he explains.

The company expects market conditions in the second half of 2008 and the beginning of 2009 to be tougher with global markets slowing.

Riske says the company is equipped to face the challenges of the coming 12 months and will focus on quality service, energy efficiency and productivity.

However, Kion does not anticipate a stock market flotation in 2009.

Kion's global market share in terms of small and low-tech trucks declined slightly over the past six months because of price competition. However, it did expand its market share of container handlers, up 30% from last year.

Over 500 000 forklifts and warehouse trucks were ordered worldwide in the first half of 2008, with Asia and eastern Europe being the principal market drivers.