The third quarter of 2022 at Jungheinrich

• Incoming orders Q1–Q3: €3.6 billion / 0.4 per cent
• Revenue Q1–Q3: €3.4 billion / 12.5 per cent
• EBIT Q1–Q3: €265.9 million / EBIT ROS: 7.8 per cent
• 2022 forecast in ad hoc announcement from 23 September substantiated
• Consistent implementation of Strategy 2025+

Hamburg, Germany, 11 November 2022 – Jungheinrich AG is looking back on a solid third quarter of the 2022 financial year. The intralogistics Group reported a slight improvement in earnings in the first nine months of the year and generated EBIT of 265.9 million euros and EBIT ROS of 7.8 per cent, despite ongoing issues in supply chains. At 3,594 million euros, the value of incoming orders was on a par with the previous year. Sales were 12.5 per cent higher than in the same period of the previous year at 3,397 million euros. The main driver of the growth in Group revenue was new truck business, partially due to solid growth in automated systems. “Jungheinrich performed well in the first three quarters of the current financial year and has recorded strong earnings,” says Dr Lars Brzoska, Chairman of the Board of Management of Jungheinrich AG. “In light of the difficult conditions, the numbers we are publishing are proof of the resilience of our company,” adds Dr Brzoska. Using consistent supply chain management, Jungheinrich was largely successfully able to avoid production interruptions over the past three quarters. At the same time, the considerable increases in the cost of materials were partially offset using appropriate measures. Orders on hand in the new truck business rose as of 30 September 2022 by 23 per cent against the end of 2021 to 1,756 million euros as a result of the continuing limited availability of production materials for processing.

2022 forecast

In consideration of the robust business development in recent months, Jungheinrich had already substantiated its forecast for 2022 on 23 September of this year. The company now expects incoming orders of between 4.6 billion euros and 4.9 billion euros for the current financial year. Group revenue is expected to fall between 4.6 billion euros and 4.8 billion euros. According to current estimates, EBIT will be between 340 million euros and 380 million euros. A range of 7.2 per cent to 8.0 per cent is expected for the EBIT return on sales. 

Strategy 2025+ update

Since autumn of 2020, Jungheinrich has been resolutely implementing Strategy 2025+ with the goal of creating sustainable value for all stakeholders. Along with the publication of the quarterly figures today, Jungheinrich would also like to provide an update on the current status of the implementation of the strategy: All ongoing and upcoming Strategy 2025+ initiatives and measures will continue as planned, taking into consideration the deterioration in general conditions as a result of the start of the war in Ukraine. Group revenue, one of the central targets, is anticipated to grow to 5.5 billion euros by 2025. This target remains unchanged. The target EBIT return on sales is expected to range between 8 per cent and 10 per cent. Jungheinrich is striving for a share of revenue from outside of Europe of 20 per cent that should also specifically be achieved through inorganic growth. ROCE (EBIT return on capital employed Intralogistics) is anticipated to be between 21 per cent and 25 per cent. Jungheinrich has set itself a minimum target of more than 100 million euros by 2025 for the key performance indicator free cash flow. This minimum target will be reviewed over the course of 2023. Based on EBIT per employee, we are aiming for productivity to increase to around 23,000 euros. By 2025, 70 per cent of the trucks supplied by Jungheinrich should be fitted with lithium-ion batteries. We are aiming for a share of female managers of 20 per cent by 2025.

One central field of action of Strategy 2025+ is sustainability. Jungheinrich has set important sustainability targets in the current financial year: all Jungheinrich locations should operate climate-neutrally by 2030 (Scopes 1 and 2). In addition, we are aiming for zero landfill waste at all of the Group’s German sites by 2025, and Jungheinrich is also committed to increasing work safety in the Group significantly by 2025.

Overview: Business trend, earnings and financial position, January to September 2022

Incoming orders and orders on hand

By value, incoming orders for all business fields – new truck business, short-term rental and used equipment, as well as after-sales services – in the reporting period was on a par with the previous year’s level at 3,594 million euros (3,581 million euros). Orders on hand for new truck business increased to 1,756 million euros as of 30 September 2022, which is 328 million euros or 23 per cent higher than the previous-year figure (1,428 million euros). Compared with orders on hand of 1,519 million euros as of year-end 2021, this represents an increase of 237 million euros or 16 per cent. The reason for the ongoing very high number of orders on hand was the continued restricted availability of production materials for further processing.

Incoming orders for the period of January to September 2022 and orders on hand as of 30 September 2022 were adjusted for orders from Russia. In light of Russia starting a war against Ukraine at the end of February 2022, the Board of Management made the decision to stop delivering trucks and spare parts to Russia and Belarus until further notice with effect from 2 March 2022.

Revenue

The main driver behind the higher Group revenue was new truck business in particular, partially due to strong growth in the automated systems business. The supply chain situation remained very challenging, especially as a result of the Russia-Ukraine war and the ongoing coronavirus pandemic. Due to the global interconnections in supply chains, the effects of the supply bottlenecks spread throughout the entire supplier and materials portfolio, as well as the associated logistics capacities. So far, production interruptions have been largely successfully prevented through targeted supply chain management.

Earnings and financial position

At 265.9 million euros, Jungheinrich Group’s earnings before interest and income taxes (EBIT) for the period January to September 2022 recorded slight growth of 3 per cent against the same period of the previous year (258.4 million euros). In the reporting period, considerable rises in the cost of materials were partially countered by appropriate measures. Due to significantly higher Group revenue in comparison with the previous year, EBIT return on sales (EBIT ROS) came to 7.8 per cent (previous year: 8.6 per cent).

Earnings before taxes (EBT), which were also substantially impacted by high valuation losses on securities and derivatives in the special fund, declined to 234.6 million euros in the first nine months of 2022 (previous year: 249.6 million euros). EBT return on sales (EBT ROS) came to 6.9 per cent (previous year: 8.3 per cent). Profit or loss in the period January to September 2022 stood at 174.8 million euros (previous year: 183.5 million euros). Earnings per preferred share were 1.72 euros (previous year: 1.80 euros).

Net debt of 95 million euros was reported as of 30 September 2022, in contrast to the net credit of 222 million euros reported at the end of 2021. This clear decrease of 317 million euros from the end of 2021 was primarily due to negative free cash flow in the period January to September 2022. Free cash flow declined considerably to −273 million euros (previous year: +137 million euros). The primary contribution to this was the sharp rise in working capital.

Forecast change report

The Board of Management substantiated its forecast for the year 2022, published on 24 March 2022, in an ad hoc announcement on 23 September 2022.

We now expect incoming orders between 4.6 billion euros and 4.9 billion euros for 2022 (previously: slightly below the previous year, 2021: 4.9 billion euros). Group revenue is expected to come to between 4.6 billion euros and 4.8 billion euros (previously: slightly above the previous year, 2021: 4.2 billion euros). According to current estimates EBIT will come to between 340 million euros and 380 million euros (previously: significantly lower than the previous year, 2021: 360 million euros). Accordingly, EBIT return on sales is expected to range between 7.2 per cent and 8.0 per cent (previously: significantly below the previous year, 2021: 8.5 per cent). EBT is expected to amount to between 305 million euros and 345 million euros (previous forecast: significantly below the previous year, 2021: 349 million euros). EBT return on sales should come to between 6.5 per cent and 7.3 per cent (previously: significantly lower than the previous year, 2021: 8.2 per cent). We assume a ROCE between 14.0 per cent and 17.0 per cent (previously: significantly lower than the previous year, 2021: 20.2 per cent). The key performance indicator free cash flow, introduced with effect from 30 June 2022, will reach a significantly negative value (2021: +89 million euros).

This forecast is based on the assumption that there will be no significant production interruptions and that the supply chains will remain largely intact to the end of the year. It still cannot be ruled out that a gas shortage could lead to serious production disruptions.

Key figures at a glance

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