Warehouse Management

Warehouse Management (WMS) Systems & Software, picking, Third party logistics, Inventory control, TMS, YMS, Cross docking, Virtual Warehouse and Web based WMS for optimal stock control in the warehouse.

The 2017 financial year at Jungheinrich: double-digit growth – forecast met

08-Mar-2018
The 2017 financial year at Jungheinrich: double-digit growth – forecast met
Jungheinrich is pressing ahead on its growth path and has closed the 2017 financial year with a considerable increase in all key indicators. In particular, this positive trend is driven by new truck business in the core market of Europe and strong growth in the logistics systems business.

Hans-Georg Frey, Chairman of the Board of Management of Jungheinrich AG:
“Jungheinrich has once again delivered, meeting its forecast. Together with our 16,000 employees, we are continuing our strong growth and hitting new heights. As a result, key milestones have once again been achieved on the road to our target of €4 billion in net annual sales for 2020.

Our strategic position – especially in respect of the megatrends of electric mobility, automation, digitalisation and interconnectivity – gives us a major edge. Thanks to our energy expertise, which is unparalleled in the industry, we managed to win the largest truck contract in the company’s history in 2017 – more than 1,000 trucks, all fitted with lithium-ion technology. More and more customers are entrusting us with the automation of their warehouses in order to meet their intralogistics challenges in the field of e-commerce. As a result, Jungheinrich is successfully positioning itself as an innovative provider of tailor-made warehousing solutions.

Jungheinrich is a different company compared to five years ago – since 2013, we have increased net sales by 50 per cent, almost solely by organic means. We are now represented in 39 countries with our own direct sales operations. We will continue to pursue this course.

Based on the anticipated positive market trend in 2018, we expect incoming orders of between €3.75 billion and €3.85 billion and net sales of between €3.6 billion and €3.7 billion. We believe that EBIT will be between €270 million and €280 million.”

Our 2017 Annual Report along with further information can be found at www.jungheinrich.com

Market
In 2017, the global market for material handling equipment recorded very strong year-on-year growth of 18 per cent, or 213 thousand units. Half of this was due to the extremely high demand from the Chinese market, which soared by 39 per cent. Of particular importance here was the steep rise in the number of orders for IC engine-powered counterbalanced trucks. Excluding China, the global market grew by 12 per cent. And just over 50 per cent of the 11 per cent rise in market volume in North America was also due to higher demand for IC engine-powered forklift trucks. Demand in Europe, Jungheinrich’s core market, rose by 12 per cent, with Western Europe up by 10 per cent and Eastern Europe up by 20 per cent.

Incoming orders and orders on hand
Incoming orders in the new truck business, based on units, which includes orders for both new forklifts and trucks for short-term rental, totalled 123 thousand units, 13 per cent above the previous year (109 thousand units). This was the result of the sharp rise in demand, particularly in Europe. At €3,560 million, the value of incoming orders, which covers the new truck business, short-term rental, used equipment and after-sales services business fields, exceeded the previous year’s figure (€3,220 million) by 11 per cent, or €340 million. Around a quarter of this was due to the increase in demand for logistics systems solutions. Orders on hand in the new truck business amounted to €692 million as of 31 December 2017 (previous year: €610 million). These orders account for four months of production.

Production
The production volume follows developments in incoming orders, with a delay. At 120 thousand units, the production volume in the reporting year exceeded the previous year’s figure of 106 thousand units by 13 per cent. The increase in the production volume was due to the increase in warehousing equipment units. With a share of 80 per cent of the total product volume, they constitute the company’s largest product segment.

Net Sales
Consolidated net sales reached €3,435 million, an increase of 11 per cent or €350 million compared to the previous year (€3,085 million). Europe accounted for 88 per cent (previous year: 87 per cent) of net sales. This growth was the result of increases in Germany, France, Russia and Italy. International sales increased by 11 per cent to €2,584 million (previous year: €2,332 million); the foreign ratio was therefore 75 per cent (previous year: 76 per cent). Net sales generated outside of Europe amounted to €415 million (previous year: €403 million). This represents

12 per cent of consolidated net sales (previous year: 13 per cent).

Earnings
EBIT increased by €24 million, or 10 per cent, to €259 million (previous year: €235 million). At 7.5 per cent, EBIT return on sales did not quite reach the level recorded in the previous year (7.6 per cent). At €243 million, EBT was up 13 per cent against the previous year (€216 million). EBT return on sales came to 7.1 per cent (previous year: 7.0 per cent). Net income increased by €28 million, or 18 per cent, to €182 million (previous year: €154 million) and a corresponding increase was recorded in the earnings per preferred share, which rose to €1.80 (previous year: €1.52).

Dividend
Due to the positive earnings performance, the Jungheinrich AG Board of Management proposes a 14 per cent higher dividend payout of €0.48 per ordinary share (previous year: €0.42) and €0.50 per preferred share (previous year: €0.44). This proposal would result in a total dividend payout of €50 million (previous year: €44 million) and a payout ratio of 28 per cent (previous year: 29 per cent). Jungheinrich follows a policy of consistent dividend payouts. The target is to pay out between 25 and 30 per cent of the net income to shareholders.

Research and development
Research and development (R&D) expenditure – including the commission of third-party services – has risen again against the previous year at €77 million (previous year: €62 million). This equates to 5.3 per cent (previous year: 4.9 per cent) of the net sales generated by new trucks relevant to R&D.

Employees
In the year under review, Jungheinrich once again increased its personnel capacities, with the primary focus on European sales. As of 31 December 2017, the Group had 16,248 employees (previous year: 15,010). This equates to an increase of 8 per cent, or 1,238 employees. The largest number of new employees in Europe joined the sales companies in Germany, Poland, Italy, the UK and France. Outside of Europe, the Brazilian sales team saw a particular rise in personnel. As of 31 December 2017 Jungheinrich had a labour force of

3,192 people in the Hamburg metropolitan region, thereof 1,184 people in Hamburg.

Assessment of the market and forecast for 2017

In light of the positive economic indicators on a global scale, we anticipate that growth in the global market for material handling equipment in 2018 will be in the mid-to-high single-digit percent range. We believe higher growth levels are also a possibility in certain markets. For our core market Europe, we also anticipate growth in the mid-to high single-digit percent range.

Taking into account the economic and sector forecast above, Jungheinrich anticipates incoming orders worth between €3.75 billion and €3.85 billion in 2018 (previous year: €3.56 billion). We are also aiming for a slight increase in market share in Europe (2017: 21.5 per cent). Consolidated net sales are expected to fall between €3.6 billion and €3.7 billion (2017: €3.44 billion).

Experts in Their Fields: Ardex Automates Material Flow and Logistics with inconso and SAP EWM
1 week ago
Renovotec Launches Warehouse ‘Network Healthcheck’ Service
2 weeks ago
Jungheinrich Miniload STC 2B1A: Automated small parts warehouse for VAHLE Group in Kamen
2 weeks ago
How Vimto created a ‘liquid’ supply chain with Distributed Warehousing
2 weeks ago
B2A Technology automates the new 27,000 m2 warehouse of the Castel Group
3 weeks ago
BEUMER opens sales office "West" for retrofitting systems from any supplier
3 weeks ago
Automatic sheet metal storage system ensures efficient processes
4 weeks ago
Logistics Service Provider B+S Logistik Achieves Rapid Ecommerce Growth using Descartes pixi* WMS
1 month ago
inconso’s SAP Recognized Expertise for SCM/EWM Again Confirmed by SAP
1 month ago
Indigo WMS toasts success with new Loch Lomond Whiskies project
1 month ago
Semi-automatic logistics solution for Germany's largest noodle factory
1 month ago
More in store
1 month ago
inconso presents extended features and availability as SaaS with new release
1 month ago
‘Secure Start’ for warehouse projects
2 months ago
Trago Mills opens new 200,000 square foot megastore complete with Jungheinrich
2 months ago
Always Keeping an Eye on Stock: ELSEN GmbH & Co. KG Uses Infor for Warehouse Management
2 months ago
Amir Reza Sinai is the new managing director of the subsidiary in Thailand A fresh breeze in Asia
2 months ago
Jungheinrich UK announces new Sales Director
2 months ago
Jungheinrich: "Your Connection To Success"
2 months ago
Jungheinrich Annual General Meeting: Strong 2017 – good start to 2018
2 months ago
Bergzeit Relies on the Warehouse Management System inconsoWMS S
3 months ago
Managing increasing customer demand proving difficult for online retailers
3 months ago
Active Nutrition International Takes PowerBar and Dymatize Online Using the Descartes pixi* WMS
3 months ago
Indigo Appoints Group CEO And Expands Executive Leadership Team
3 months ago
Dematic Introduces Enhanced Goods-To-Person Solution To Better Extend Order Cutoff Times
3 months ago
TGW's Rovolution robot picker marks new era in materials handling automation
3 months ago
Harro Foods to roll out Accord Warehouse Management System
3 months ago
Diamond Logistics and pi-top: Growing Together
3 months ago
rfxcel Launches Fully Integrated Edge Solution with Partner Navitas
3 months ago
HYDAC and inconso Expand Cooperation
3 months ago
‘Power Buy the Hour’ mobile app launched for game changing range of Jungheinrich rental packages
3 months ago
Jungheinrich WMS named “Best Factory Software 2018”
3 months ago
First Jungheinrich Miniload
3 months ago
Doosan keeps manufacturing in motion at MACH 2018
4 months ago
World premiere of the ETV 216i: The world’s first reach truck with built-in lithium-ion battery
4 months ago
Dematic launches Robotics Center of Excellence
4 months ago
Global Foods picks BCP to improve warehouse efficiency
4 months ago
Alstef and BA Robotic Systems Group to merge with the support of Future French Champions
4 months ago
Vado Invests In TouchPath Warehouse Management System
4 months ago
Peoplevox chosen as Magento’s WMS Partner
4 months ago
Intermedia Solutions Grows Business With ProSKU
4 months ago
Vanderlande joins forces with Toyota Material Handling at CeMAT
4 months ago
inconsoWMS X Controls Distribution Center of MEPHISTO
4 months ago
Jungheinrich: "Your Connection To Success"
4 months ago
TGW extends Triumph International's logistics centre
5 months ago
Infor and Integration Point Partner to Create Comprehensive, Network-based Global Trade Management Solution
5 months ago
Coastal Pet leads Indigo to further US expansion
5 months ago
inconso AG Expands Management Board
5 months ago
Vanderlande’s evolutions to be showcased at LogiMAT
5 months ago