Jungheinrich continues to grow in the first Quarter
Jungheinrich benefits from strong market growth to post record results
Quarter 1 2006, results summary:
·Net sales up by 5% year on year to €379m (£258m)
·Operating profit (EBIT) up 25% year on year to €23.2 (£16m)
·New orders up by 9% year on year to €443m (£301m)
·Return on sales (ROS) rose to 6.1%
·Earnings per share (EPS) increased to €0.38 (£0.25)
The Jungheinrich Group reports improving net sales in the first quarter of 2006, increasing by more than 5 per cent year on year to €379 million (prior year: €359 million). Operating earnings before interest and tax (EBIT) advanced by roughly 25 per cent to €23.2 million (prior year: €18.5 million).
This follows the strong growth seen in 2005, which resulted in the best fiscal year ever for the company. “Jungheinrich was able to significantly increase its operating income for the sixth year running,” said Dr. Cletus von Pichler, Chairman of the Board of Management, as the Group continued on its path towards internationalisation with structural changes implemented to meet its corporate objectives.
In the first quarter of 2006, the value of incoming orders rose by 9 per cent to €443 million (prior year: €407 million). As of March 31, 2006, orders on hand from new business totalled €233 million, slightly above prior year value. This corresponds to an increase of €64 million, or 38 per cent, since the beginning of the year. The rise is due to the high level of incoming orders as well as the improved product mix, favouring heavy trucks.
All of the business fields contributed to the net sales growth of 5.6 per cent. The aftersales service posted the largest increase in growth, gaining 8 per cent. Jungheinrich’s return on sales (ROS) improved to 6.1 per cent (prior year: 5.2 per cent). At €13.1 million, net income generated in the first quarter was some 21 per cent above the €10.8 million achieved a year earlier. Earnings per share rose to €0.38 (prior year: €0.32).
The materials handling equipment market continued to grow in the first few months of the year, following the encouraging development witnessed in 2005. From January to March 2006, the world market volume in terms of units sold expanded by 10 per cent to 205.8 thousand trucks (prior year: 187.1 thousand units). Growth drivers were North America, accounting for 6 per cent, Asia for 7 per cent, and Europe, making a contribution of 15 per cent. The Eastern European market expanded by 46 per cent, with Western Europe posting 11 per cent growth, outpacing the world. Europe’s market volume increased to 86.4 thousand forklift trucks (prior year: 74.8 thousand units). Jungheinrich benefited from this growth and succeeded in strengthening its market position.
As of March 31, 2006, the company employed 9,062 staff on its payroll (prior year: 8,930). A total of 4,630 employees (51 per cent) worked in Group companies outside Germany.
After a good first quarter, Jungheinrich expects market growth for 2006 to exceed the forecast made last autumn. The world market’s anticipated expansion to about 800 thousand trucks (prior year: 749 thousand units) will afford the company additional sales opportunities. Jungheinrich expects consolidated net sales for 2006 to rise to over €1.75 billion.