Jungheinrich publishes new forecast for 2020 and announces figures for the first half of the year
Taking into account the consequences of the COVID-19 crisis that are currently expected, the Board of Management of Jungheinrich AG has prepared a new forecast for the 2020 financial year.
The forecast for the 2020 financial year published on 18 December 2019 and confirmed with the publication of the 2019 annual report on 18 March 2020 did not cover the consequences of the COVID-19 pandemic and was withdrawn at the end of April 2020 due to the uncertainty regarding the expected consequences of the pandemic on Jungheinrich's further business development.
We are now better able to estimate the course of the remainder of the financial year. Acccordingly, Jungheinrich anticipates incoming orders between €3.4 billion and €3.6 billion in 2020. Group revenue is also expected to fall between €3.4 billion and €3.6 billion. According to current estimates, earnings before interest and income taxes (EBIT) should be between €130 million and €180 million in 2020. EBIT return on sales is expected to be in a range of 3.8 per cent to 5.0 per cent. Earnings before taxes (EBT) should amount to a value between €105 million and €155 million. EBT return on sales should come to 3.1 per cent to 4.3 per cent.
Furthermore, net debt significantly below €50 million is expected by the end of 2020. The ROCE for the 2020 financial year should be between 8 per cent and 12 per cent.
Jungheinrich also aims to slightly increase its market share in Europe against the 2019 financial year (2019: 20.2 per cent).
This forecast is based on the assumption that the ongoing COVID-19 pandemic will not lead to a second extensive lockdown and that supply chains will remain mostly intact. The forecast ranges already take into account certain negative developments on the customer and supplier side.
The business development of the Jungheinrich Group in the first half of 2020 was especially influenced by the consequences of the global coronavirus pandemic in the second quarter of 2020. At 53.9 thousand units, orders for new forklifts in the first half of 2020 were therefore significantly down on the previous year (67.0 thousand units). At €1.81 billion, the value of incoming orders of the Jungheinrich Group also remained below the previous year’s figures (€2.07 billion). Particularly in light of the good level of orders on hand as of the end of the first quarter of 2020, Group revenue amounted to €1.80 billion (previous year: €1.96 billion).
In the first half of 2020, EBIT amounted to €95 million (previous year: €125 million). EBT amounted to €82 million (previous year: €117 million). Accordingly, EBIT return on sales was 5.3 per cent (previous year: 6.4 per cent) and EBT return on sales was 4.5 per cent (previous year: 6.0 per cent). The previous year's figures have been adjusted and take into consideration the impacts on earnings reported in the interim statement as of 30 September 2019 and which almost balanced each other out.
The company has a very healthy statement of financial position and a solid liquidity reserve.
The interim report for Jungheinrich AG as of 30 June 2020 will be published on 11 August 2020.