Jungheinrich AG is looking back on a successful first half of 2021. Incoming orders developed positively due to the very good market development compared with the previous-year period and reached €2.42 billion (previous year: €1.81 billion). At €1.99 billion (previous year: €1.80 billion), the main driver of the increase in revenue was the new truck business with higher production volumes of forklift trucks and solid growth in automated systems. With EBIT of €169 million (previous year: €95 million), EBT of €165 million (previous year: €82 million), and profit or loss of €121 million (previous year: €60 million), results were noticeably above the previous year’s level. As of the reporting date, net credit amounted to €260 million (compared with year-end 2020: €194 million). The forecast for the 2021 financial year which was raised on 22 April 2021 is confirmed.
Dr Lars Brzoska, Chairman of the Board of Management of Jungheinrich AG: “As expected, the first half year of 2021 was very good for Jungheinrich. This is particularly evident in the strong number of incoming orders. We were also able to significantly increase our profitability. We continue to manage the coronavirus pandemic successfully. Thanks to our effective supply chain management, we were able to minimise the consequences of the tense global supply chain situation on the Group. At the same time, we continue to consistently implement our Strategy 2025+. We are positive about the remainder of the year.”
Development from January to June 2021
Development of the market for material handling equipment
The global market volume for material handling equipment grew particularly strongly in the first half of 2021 compared to the same period of the previous year, with all regions recording a considerable increase in demand. Orders in Europe rose noticeably in the reporting period, primarily driven by demand for warehousing equipment.
Business development Jungheinrich
Due to the strong demand in Europe in particular, incoming orders, based on units, which includes orders for both new forklifts and trucks for short-term rental, rose by 51 per cent in the first half of 2021 to 81.3 thousand units (previous year: 53.9 thousand units).
At €2.42 billion, the value of incoming orders, which covers all business fields – new truck business, short-term rental, used equipment and after sales – clearly exceeded the previous year’s figure of €1.81 billion by 34 per cent in the reporting period, reflecting the positive market development, especially in Europe.
Orders on hand for new truck business came to €1.29 billion as of 30 June 2021 and the figure was thus 57 per cent higher than the previous-year figure (€824 million) and the figure as of the end of 2020 (€821 million). This is an increase of €468 million and €471 million respectively. The reasons for this sharp build-up were the strong demand for material handling equipment, the increase in project orders for automated systems and the partially restricted availability of production materials in light of the ongoing and globally noticeable increase in demand in numerous sectors.
Group revenue of €1.99 billion in the first half of 2021 was 10 per cent higher than in the previous-year period (€1.80 billion). Revenue in Germany, the largest single market, rose by 12 per cent in the reporting period to €479 million (previous year: €429 million). Foreign revenue increased by 10 per cent to €1.51 billion (previous year: €1.37 billion). The foreign ratio was constant against the previous year at 76 per cent. Revenue from outside Europe reached €248 million (previous year: €232 million). This represents 12 per cent of Group revenue (previous year: 13 per cent).
The main driver of the increase in Group revenue in the first half of 2021 was the new truck business with revenue growth of €114 million. The primary reasons for this growth in revenue in the new truck business in comparison with the previous year were the significantly higher production volume of trucks and solid growth in automated systems. Revenue from short-term rental and used equipment came to €311 million (previous year: €294 million). After sales grew noticeably with revenue amounting to €577 million in the first half of 2021 (previous year: €523 million). Revenue in the financial service business was on a par with the previous year in the first six months of the reporting year at €549 million (€553 million).
EBIT increased by €74 million, or 78 per cent, to €169 million (previous year: €95 million). At 8.5 per cent, EBIT ROS was significantly above the previous year’s level (5.3 per cent). At €165 million, EBT doubled year-on-year (€82 million). EBT return on sales amounted to 8.3 per cent (previous year: 4.5 per cent). Profit or loss of €121 million (previous year €60 million) was reached.
As of the reporting date, net credit amounted to €260 million. The improvement of €66 million in comparison with the end of the 2020 financial year (€194 million) was largely the result of increased cash flow from profit or loss plus depreciation, amortisation and impairment losses with moderate growth in working capital and the short-term rental fleet.
Due to the very strong incoming order position in the first quarter of 2021 and anticipated high demand for material handling equipment and automated systems for the rest of the year, the Board of Management raised the forecast for the 2021 year that was published on 26 March 2021 and published this in an ad-hoc announcement on 22 April 2021. This expectation has not changed since. The figures for the second quarter of 2021 reflect the anticipated, ongoing solid demand. The Board of Management therefore confirms the forecast raised in April, whereby the current estimate for incoming orders is that the upper end of the range of €4.2 billion to €4.5 billion (2020: €3.8 billion) could be slightly exceeded. Due to significant challenges in the supply chain, Group revenue is expected to fall within a range of €4.0 billion and €4.2 billion (2020: €3.8 billion). Based on current estimates, EBIT will be between €300 million and €350 million in 2021 (2020: €218 million). Accordingly, EBIT return on sales is expected to range between 7.5 per cent and 8.3 per cent (2020: 5.7 per cent).
The Strategy 2025+ goals and measures that were published in November 2020 will be fully pursued and key targets for 2025 reviewed until the end of the year.
Key figures at a glance
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Profit or loss