DGAP-Adhoc: KION Group publishes preliminary financial results for Q2 2020
DGAP-Ad-hoc: KION GROUP AG / Key word(s): Preliminary Results
KION Group publishes preliminary financial results for Q2 2020
13-Jul-2020 / 14:53 CET/CEST
Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
DISCLOSURE OF INSIDE INFORMATION PURSUANT TO ARTICLE 17 OF REGULATION (EU) NO. 596/2014
KION Group publishes preliminary financial results for Q2 2020
Frankfurt/Main, 13 July 2020
The value of order intake for the KION Group rose by over 11 percent to around €2.3 billion in the second quarter of 2020 compared to €2.079 billion in the second quarter 2019. While order intake in the Industrial Trucks & Services segment declined by around 20 percent, the Supply Chain Solutions segment saw a doubling of order intake, driven to a large extent by exceptionally strong demand from e-commerce companies. The market for automated supply chain solutions remained intact in nearly all important customer industries and is continuing to grow.
Consolidated revenue fell by more than 16 percent to just under €1.9 billion compared to €2.281 billion in the second quarter 2019, primarily as a result of extensive lockdown measures in a number of the Company's geographical markets in April and May. Adjusted EBIT for the KION Group was significantly down on the figure for the prior-year period at just under €61 million (Q2 2019: €225 million); the adjusted EBIT margin was over 3 percent (Q2 2019: 9.9 percent). The decline in revenue and earnings was driven primarily by the growing impact of the global spread of the coronavirus pandemic. In the Industrial Trucks & Services segment, this caused huge damage to business operations, in terms of both procurement and sales, especially in Europe. Thanks to strict spending discipline, a positive free cash flow of approximately €2 million was achieved in the second quarter of 2020 (Q2 2019: -€114 million).
In the Industrial Trucks & Services segment (industrial trucks, warehouse technology, and related services), the KION Group's brand companies took orders for just over 43,000 new trucks in the period April to June. This represented around 23 percent fewer orders than in the prior-year period. In China, however, there are now clear signs of recovery in the truck market as the country emerges from the coronavirus pandemic. Toward the end of the quarter, there were also emerging signs of recovery in European countries.
The value of order intake in the Industrial Trucks & Services segment, which includes the service business, fell by around 20 percent compared to the prior-year period to almost €1.3 billion (Q2 2019: €1.573 billion). Segment revenue fell by around 23 percent to almost €1.3 billion (Q2 2019: €1.638 billion), primarily as a result of the decline in new truck sales. Despite the significant decline in revenue, and the associated underutilization of capacity, adjusted EBIT remained positive at just under €16 million (Q2 2019: €178 million). The adjusted EBIT margin was just over 1 percent (Q2 2019: 10.8 percent).
The value of order intake in the Supply Chain Solutions segment was a record close to €1.1 billion in the second quarter of 2020, an increase of more than 100 percent on the corresponding prior-year period (Q2 2019: €506 million). This was due in large part to big-ticket orders from e-commerce customers, including companies in North America and Europe. Segment revenue was virtually unchanged on the prior-year period at approximately €635 million (Q2 2019: €642 million). Adjusted EBIT for the segment was in excess of €50 million, which represented a fall of approximately 16 percent (Q2 2019: €64 million) as a result of inefficiencies caused by the difficult circumstances for delivering projects under restrictions imposed to contain the pandemic. The adjusted EBIT margin was around a solid 8 percent (Q2 2019: 9.9 percent).
All figures for the second quarter 2020 in this release are based on preliminary financial results. Therefore, financial results to be published in the interim report as of 30 June 2020 may deviate from the figures in this release. This report is expected to be published on 30 July 2020.
Explanations and reconciliations of key financial figures used can be found in the KION GROUP AG's Annual Report 2019 (available at https://www.kiongroup.com/en/Investor-Relations/Publications/), especially on pages 57 et. seq., 69 et. seq. and 80.
Contact for investors Contact for the media Antje KelbertSenior Manager Investor Relations
Phone +49 (0)69 201 107 346
antje.kelbert@kiongroup.com Michael Hauger
Senior Vice President Corporate Communications
Phone +49 (0)69 201 107 655
Cell +49 (0)151 16 86 55 50
michael.hauger@kiongroup.com Dana Unger
Senior Manager Investor Relations
Phone +49 (0)69 201 107 371
dana.unger@kiongroup.com Frank Grodzki
Senior Director External Communications & Group Newsroom
Phone +49 (0)69 201 107 496
Cell +49 (0)151 65 26 29 16
frank.grodzki@kiongroup.com
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