Robust Business Development at Jungheinrich

Jungheinrich AG recorded a robust business development in the first half of the fiscal year 2024, despite a continuing challenging market environment. The order intake, which encompasses all business areas – new business, rental and used equipment, as well as customer service – remained stable during the reporting period at 2,665 million euros compared to the previous year (2,684 million euros). The order backlog for new business reached a value of 1,520 million euros at the end of the first half of 2024. This represents an increase of 79 million euros or 5.5 percent compared to the backlog value of 1,441 million euros at the end of 2023.

(Hamburg) The group revenue amounted to 2,622 million euros in the first half of the year, remaining at the level of the previous year of 2,658 million euros. Increases in customer service and a positive trend in the financial services business nearly offset the declining revenues in new business. However, revenue in Germany developed negatively during the reporting period, decreasing by 3.5 percent to 579 million euros (previous year: 600 million euros). EBIT was 215 million euros, which is 21 million euros below the previous year’s value (236 million euros). Measures initiated in the previous year to enhance results helped to partially offset the cost increases from tariff effects and the personnel buildup that occurred last year. The EBIT margin reached 8.2 percent (previous year: 8.9 percent). The free cash flow, as the sum of cash flows from operating activities and investing activities, improved significantly by 354 million euros to +172 million euros (previous year: -182 million euros).

“The first half of the year was characterized for Jungheinrich by challenging economic conditions. In particular, the continued weak development of the German economy has been noticeable in the first six months of the current fiscal year. Nevertheless, with an EBIT margin of 8.2 percent, Jungheinrich records a robust margin. We have benefited from the measures initiated in the previous year to enhance results. We will continue to consistently drive the implementation of our Strategy 2025+ and confirm our forecast for the current fiscal year,” explains Dr. Lars Brzoska, CEO of Jungheinrich AG.

Significant Activities in Research and Development

Significant activities in the area of research and development (R&D) during the reporting period focused on the design of new industrial trucks. The emphasis was on the further development of efficient energy storage systems based on lithium-ion technology. Additionally, the development of mobile robots and the optimization of automated systems were in focus. Another R&D focus was on digital products. The number of employees engaged in development projects across the group averaged 1,005 during the reporting period (previous year: 980).

As of June 30, 2024, Jungheinrich employed 20,871 employees on a full-time basis, of which 41 percent were in Germany and 59 percent abroad. The decline during the reporting period compared to the value at the end of December 2023 (21,117) resulted from a cautious personnel policy in light of the challenging market environment. The number of temporary workers, who are mostly employed in Jungheinrich’s domestic plants, also decreased to 357 as of June 30, 2024 (December 31, 2023: 438).

Measures to Enhance Results Initiated

For the fiscal year 2024, Jungheinrich continues to expect an order intake in a range of 5.2 billion euros to 5.8 billion euros (2023: 5.2 billion euros). For group revenue, the company anticipates a range between 5.3 billion euros and 5.9 billion euros (2023: 5.5 billion euros), assuming stable supply chains and considering the current interest and inflation environment. It is assumed that the geopolitical situation does not worsen. Jungheinrich expects EBIT in the current fiscal year to be between 420 million euros and 470 million euros (2023: 430 million euros). The management has already initiated appropriate measures to enhance results in 2023, which will take effect in the current year and particularly counteract rising personnel costs. Additionally, burdensome effects from purchase price allocations amounting to 13 million euros and from variable compensation amounting to 11 million euros from the acquisitions made in 2023 are taken into account.

Photo: © Jungheinrich