JUNGHEINRICH RAISES ITS SALES FORECAST
August 30, 2007 (PRLEAP.COM) Technology NewsRICHMOND, VA – The Jungheinrich Group continued to grow substantially in the second quarter of 2007. Incoming orders and net sales increased significantly in mid-year, with earnings seeing further growth as well. The company expects to enjoy a consolidated net sales of approx. $2.7 billion (€2.0 billion) if growth continues at this pace.
Overall global demand for material handling equipment increased nearly 13 percent in the second quarter of 2007. Europe contributed an above-average share of this growth, accounting for 22 percent of it. In particular, Eastern Europe saw a gain in demand of 51 percent, continuing to outpace Western Europe, which advanced by 18 percent. The Asian market recorded a rise in demand of 15 percent, and China was again the growth engine there, recording a 24 percent increase in demand growth. In contrast, the North American market experienced a 15 percent decline, though the downward trend there slowed in the second quarter.
Orders on hand from Jungheinrich’s new truck business continued to rise in value, totalling $463.9 million as of June 30—up 25 percent from the $369.8 million mark achieved in the corresponding period last year. Since the beginning of 2007, the value of orders on hand has increased by 29 percent. The order range was extended to nearly four months.
In the second quarter, Jungheinrich boosted its net sales about 19 percent, to a level of $680.9 million, up from $574.5 million for the prior year. Net sales were up 19 percent in the first half of the year as well, advancing to $1.30 billion. Net sales for the first half of 2006 were $1.09 billion. New truck business accounted for the single-largest increase in net sales, increasing as it did 28 percent, followed by the short-term hire and used equipment business, which advanced 15 percent. After-sales services benefited from a steady rise in market penetration, gaining 8 percent. In the first half of the year, the foreign ratio rose to 74 percent, compared to a value of 73 percent for 2006.
Earnings before interest and taxes (EBIT) advanced by 32 percent, to $49.1 million in the second quarter, vs. a value of $37.1 million last year. Jungheinrich’s return on sales (ROS) improved to 7.2 percent for 2007, compared to 6.5 percent for 2006. Negative effects felt from persistently high raw material prices and the competition-driven downward pressure on prices of new trucks were more than offset by the substantial level of incoming orders and the rise in productvity in the company’s plants. By the end of the first six months of 2007, operating income had risen to $84.9 million contrasted with a figure of $68.8 million for last year, with the return on sales amounting to 6.5 percent at the mid-year mark (to be compared to last year’s level of 6.3 percent).
In the second quarter, net income was up only 8 percent to $29.5 million, compared to $27.3 million for the prior year, with the slight rise owing to the much lower tax ratio in the same period last year. The company closed the first half of 2007 with a posting of $48.2 million in net income, vs. $45.2 million for 2006. Earnings per share so far this year have risen to $1.42, compared to last year’s value of $1.32, based on 34.0 million shares.
Jungheinrich expects demand for material handling equipment to remain high in the second half of 2007, although the rate of demand growth may drop slightly. “We aim to attract more than $2.7 billion in orders this year, and we stand a chance of hitting the $2.7 billion mark in terms of net sales for the first time, as well,” says Hans-Georg Frey, Chairman of the Board of Management.
Jungheinrich ranks among the world’s leading companies in the material handling equipment, warehousing and material flow engineering sectors. The company has become a major logistics service provider to manufacturing operations, offering its customers a comprehensive range of forklift trucks, shelving systems and services covering the entire field of intralogistics. Jungheinrich shares are traded on all German stock exchanges.
For more information about Jungheinrich’s financial outlook for 2007, contact Jungheinrich Lift Truck Corp., 5601 Eastport Boulevard, Richmond, VA 23231. Call 804-737-7400. Fax: 804-737-7467. Or, visit the website at www.jungheinrich-us.com.
Jungheinrich is the world leader in warehouse logistics technology. Founded over fifty years ago, the company has grown from its beginnings as a European manufacturer of materials handling equipment to an international supplier of industrial trucks, warehousing technology and materials-flow products. Today, it is a major supplier of forklift trucks around the globe, and offers a complete range of materials handling equipment, rack systems and services related to manufacturing logistics.
Jungheinrich’s growth has been due in large part to the high value it has always placed on leading-edge design and technological innovation. This is seen, for example, in the company’s proprietary 3-phase AC motor and controller technology, and in a host of productivity and ergonomic enhancements. Jungheinrich has more than 120 strategically-located service support centers and store operations in the U.S., and sales and service companies in countries around the industrialized world.
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