Kion confirms positive trend with a sharp rise in orders
The KION Group benefited from sustained strong growth in the markets for industrial trucks and supply chain solutions in the second quarter of 2018. The group’s order intake rose by 23% to EUR2.424 billion (USD2.8 billion), one of the main contributors being its project business for automated systems. At EUR3.06 billion (USD3.54 billion), the order book was up significantly compared with December 31, 2017 (EUR2.614 billion). Revenue rose by 1.5% to EUR2.031 billion (USD2.35 billion) in the second quarter.
“Our record order intake in the second quarter confirms our excellent positioning in fast-growing core markets. The growth drivers remain intact both for industrial trucks and in the supply chain solutions market, ensuring sustained high demand,” says Gordon Riske, KION Group CEO. “By appointing Susanna Schneeberger as our chief digital officer with effect from October 1, 2018 and launching our Digital Campus, we are putting great emphasis on aligning our business with the areas that will dominate the future of our industry. At the same time, we are continuing to invest heavily in strategic projects and technologies in the fields of mobile automation, robotics, and new digital solutions that enable the connectivity of industrial trucks. We want to continue offering our customers the best solutions in our industry.”
The global market for industrial trucks experienced strong growth across all regions, with the number of new trucks ordered rising by 15.4% in the first half of 2018. As before, the rapid expansion of the e-commerce sector and the increasing use of Industry 4.0 technologies are shaping the market for warehouse systems and automation solutions. Many companies continue to expand and optimize their warehouse capacities and invest into automated warehouse systems.
Orders in the Industrial Trucks & Services segment (forklift trucks, warehouse technology, and related services) increased to around 57,000 units in the second quarter, while the total value of order intake rose by 2.2%.
The value of order intake in the Supply Chain Solutions segment increased sharply in the second quarter of 2018, rising by 93.3% to EUR874 million USD1.01 billion).
Despite temporary bottlenecks at individual suppliers and the related production inefficiencies in the Industrial Trucks & Services segment, the KION Group expects to achieve the outlook for the year as published in the 2017 combined management report. In 2018, the KION Group aims to build on its successful performance in 2017 and, based on the outlook for market growth, achieve further increases in order intake, revenue and earnings.