In light of better market and business development than initially expected in the summer, Jungheinrich is raising its forecast for 2020.
In the first half of 2020, Jungheinrich performed well despite the tense market environment resulting from the global COVID-19 pandemic. For several weeks, customer demand has been gradually picking up. This is why Jungheinrich expects revenue for the rest of 2020 to be higher than initially planned. The Board of Management assumes that the improved efficiency and cost-cutting measures initiated at an early stage and consistently implemented will continue to have a positive impact on earnings.
For the full year 2020 the Board of Management is therefore expecting incoming orders of between €3.5 billion and €3.7 billion from today’s perspective (previous forecast: €3.4 billion to €3.6 billion). Group revenue is also expected to fall between €3.5 billion and €3.7 billion (previous forecast: €3.4 billion to €3.6 billion). According to current estimates, earnings before interest and taxes (EBIT) should be between €180 million and €230 million in 2020 (previous forecast: €130 million to €180 million). A range of 5.1 per cent to 6.2 per cent is expected for the EBIT return on sales (previous forecast: 3.8 per cent to 5.0 per cent). Earnings before taxes (EBT) is expected to amount to between €155 million and €205 million (previous forecast: €105 million to €155 million). EBT return on sales should come to 4.4 per cent to 5.5 per cent (previous forecast: 3.1 per cent to 4.3 per cent).
It is also expected that Jungheinrich will not report net debt at the end of the financial year, but will reach a net credit position of well over €50 million (previous forecast: net debt of significantly less than €50 million). The ROCE for the 2020 financial year should be between 10 per cent and 14 per cent (previous forecast: between 8 per cent and 12 per cent).
Jungheinrich expects a slight increase in its market share in Europe against the 2019 financial year; this remains unchanged compared to the previous expectations (2019: 20.2 per cent).
This forecast is based on the assumption that the ongoing COVID-19 pandemic will not lead to further extensive lockdowns or even to plant closures before the end of the year and that the supply chains will remain largely intact to maintain production. The lower forecast threshold already takes into account certain – currently negative – developments caused by the coronavirus, which are affecting customers and suppliers.
The business development of the Jungheinrich Group as of 30 September 2020 was very satisfactory in light of the ongoing pandemic. Incoming orders amounted to €2,732 million (previous year: €3,014 million) and Group revenue after nine months amounted to €2,723 million (previous year: €2,972 million).
EBIT amounted to €150.2 million (previous year: €197.3 million). EBT amounted to €133.8 million (previous year: €183.3 million). Accordingly, EBIT return on sales was 5.5 per cent (previous year: 6.6 per cent) and EBT return on sales was 4.9 per cent (previous year: 6.2 per cent).
The interim statement of Jungheinrich AG as of 30 September 2020 will be published on 10 November 2020.