Interim report for the first half-year of 2000 - More
Transcrição
Interim report for the first half-year of 2000 - More
Interim report for the first half-year of 2000 Positive earnings performance Sales up 12 percent Significant headway in restructuring Boss Change-over to US GAAP now complete Jungheinrich Aktiengesellschaft · Hamburg Incoming orders Dear Shareholders: The Jungheinrich Group got off to a good start in the first half of the 2000 financial year. The general state of the market for industrial trucks continued to improve in the first few months of the year, with the market volume in Europe reaching a new record high of 131,000 lift trucks (up 16%). Germany, France, the UK, Italy and Spain are the five biggest individual markets, accounting for a good 70% of total market volume. The Jungheinrich Group has done very well from this growth in demand, achieving an increase of 16% for the first half of the year in the number of units ordered. The Jungheinrich Group chalked up doubledigit growth in all its product segments, i.e. warehousing equipment and counterbalanced trucks. This is due in part to the innovative new products showcased by the Group at this year’s Hanover Fair – the world’s leading industrial show. Chief among these innovative products is the new low platform truck from the Swift series, currently the world’s smallest three-phase electric-powered industrial truck. The trend towards threephase technology – in which Jungheinrich is playing a leading role – is set to continue. On a similar note, the Group’s new initiatives in the strategically important area of financial services have also made a positive contribution. In recognition of their enhanced importance, the Group began the year by merging its financial service operations, with a combined contract value of over € 600 million, into a single entity: the proFIS Finanzservice GmbH. The business performance of the Jungheinrich Group in the current financial year is not only a result of the positive market trend and the continued expansion of the Group’s distribution and service operations, but also of efforts to improve the profit situation in our foreign subsidiaries Boss (UK) and MIC (France). Progress in restructuring the Leighton Buzzard plant and the healthy state of Boss’ order book have produced a steady reduction in the level of losses – and this despite the negative impact of the high exchange rate for the Pound. Likewise, the MIC production plant in Argentan, France, is showing the first signs of recovery. At the start of the 2000 financial year, the Jungheinrich Group changed its accounting methods over to the internationally recognised US GAAP accounting and valuation principles. Jungheinrich’s move to US GAAP certification comes in response to growing investor demand for the international benchmarking of company financial statements. The biggest changes to the Group’s previous balance-sheet practices are in the way the Group’s leasing business is treated, the main difference here being a contraction of revenue and a balance sheet extension. The previous year’s figures shown in the accounts have been adjusted for US GAAP. The dynamic growth on the market has resulted in a 14% increase in the value of incoming orders, from € 455 million for the same period in the previous year Incoming orders in million € + 14% 519 Anlagevermögen Domestic Change +6% 28,0 % 455 159 150 Vorräte, Forderungen, etc. 55,4 % Foreign Change + 18 % 305 16,6 % 1st half year 26,5 % 1999 52,7 % 360 20,8 % 2000 to € 519 million this year. All four brands owned by the Jungheinrich Group – Jungheinrich, Steinbock, Boss and MIC – had a share in this increase. The largest increase in the volume of orders came from outside Germany. Orders on hand The total volume of orders on the books at 30 June 2000 was worth € 252 million, an increase of 22% on the previous year’s figure of € 207 million, and a 37% increase over the order volume at the start of the year. By growing production capacity to meet the increased demand, the Jungheinrich Group was able to keep the order horizon at three months – the same level as the previous year. Sales Group sales increased in the first half of the year to € 719 million, up from € 64 million for the same period last year. This was a reflection of high production volumes, which at 30 June amounted to 31,700 units (up Sales in million € + 12% 719 Anlagevermögen Domestic Change +1% Vorräte, Forderungen, etc. Foreign Change + 18 % 640 28,0 % 213 211 55,4 % 429 16,6 % 1st half year 26,5 % 1999 52,7 % 506 20,8 % 2000 Sales structure staffing levels in our production plants – primarily in Germany – to keep pace with increased demand. Over the half year ended 30 June 2000, we took on a total of 77 new staff. Sales of new products 59 % Capital spending 27% 14% Used vehicles/ Hire and leasing business After-Sales from 28,400 trucks for the same period in the previous year). Foreign sales were a key factor fuelling the 12% growth rate, increasing their share in overall sales from 67% to 70% during the period under review. All business segments played a role in sales growth. The new-vehicle segment grew by 12%, and the service segment involving vehicle rentals and used vehicle sales grew at an above-average rate of 18%. Business from vehicle rentals and used vehicle sales benefited from the expansion of the Group’s European rental fleet by 2,000 units to a total of nearly 14,000 and a high capacity utilisation rate. The after-sales service segment grew by 11%. This segment is less prone than others to the effects of economic cycles, and its sizable growth is due in part to the high market presence of Jungheinrich vehicles and to the continued and systematic expansion of the Group’s customer service network on the ground in Europe. The Jungheinrich Group currently has some 2,800 mobile and workshop-based service technicians in Germany and abroad. Personnel As at 30 June 2000 the Jungheinrich Group had 9,068 employees, an increase of 353 as compared with last year. Two thirds of this increase represented new hires as part of the programme to expand our European distribution and customer service network. This year the Jungheinrich Group also established new sales companies in Greece and Turkey. We also had to increase Number of staff (as at 30 June) Anlagevermögen Domestic Change +4% Vorräte, Forderungen, etc. Foreign Change +4% 8,715 9,068 26,5 % 4,111 55,4 % 4,604 16,6 % 1st half year + 4% 1999 4,266 52,7 % 4,802 20,8 % 2000 In the period under review, spending on plant, machinery and equipment, excluding additions to the rental and leasing fleet, totalled € 10 million – € 7 million below the previous year’s level. Main areas of spending involved measures to expand the Group’s sales and customer service infrastructure in Europe, expenditures on machinery, plant and equipment to increase the productivity of the Group’s largest multi-brand plant in Germany (Norderstedt), and a programme to expand and optimise the Group’s central parts distribution operation in Norderstedt. The volume of capital spending will steadily increase in the third and final quarters as each of the main project areas are successively brought to completion. Earnings position The Jungheinrich Group once more enjoyed positive growth in profits in the first half of 2000. A first-quarter increase in earnings was sustained and extended in the second quarter. The Group’s foreign subsidiaries in the UK (Boss) and France (MIC) played their part in the growth of the Group’s operating result to the end of the half-year. As such, the Group managed to top the comparatively high operating result generated in the first half of 1999. The changeover to US GAAP at the start of 2000 meant that a significant portion of the costs for packages for special measures adopted for Boss and MIC – costs which had already been shown in the consolidated financial statements for 1999 in accordance with the German Commercial Code (HGB) – would now have to be shown again in the financial statements for 2000. Even so, the consolidated earnings before interest and taxes (EBIT) for the first half of 2000 have increased to € 31.5 million (up from € 29.7 million in the previous year) – above original expectations. The profit before taxes was € 26.7 million (as compared with € 24.5 million in the previous year). Jungheinrich shares At the Annual Shareholders’ Meeting this year as well as the special meeting of preferential shareholders on 19 June, the Board of Management was authorised, for the purpose of creating new authorised capital, to increase the company’s share capital through the issuance of new non-voting bearer preference shares in return for cash contributions. The Board was authorised, with the approval of the Supervisory Board, to increase the share capital either by a single share issue or by several share issues, up to a ceiling of € 6,000,000. This authorisation is valid until 30 June 2005. Outlook On the basis of the healthy interim accounts for the first half of 2000 we anticipate that the remainder of the year will continue to be characterised by a favourable overall business climate and a positive business trend. We anticipate that market volume in Europe will grow to over 240,000 trucks (previous year: 222,000 units). On this basis, we will consolidate and expand our market presence in Europe and invest further capital in the burgeoning market for logistics solutions. For the overall 2000 year, we anticipate that the Jungheinrich Group will have a production volume of more than 62,000 units (1999: 57,000 units) and record an increase in consolidated sales to some € 1.5 billion (1999: € 1.35 billion). The consolidation process underway in our industry continued apace in the first half of this year, with several new company mergers and cross-shareholding deals. The competitive environment is thus changing, and we will be monitoring the activities of our competitors very closely in order to seize every available opportunity to optimize our international competitive position. To improve differentiation of the Group’s four brands, we have decided to market our Steinbock Boss brand under the name of Steinbock with effect from 1 July 2000. We are currently reviewing the market positioning of our four brands, Jungheinrich, Steinbock, Boss and MIC, with a view to strengthening the position of each. This year, e-commerce is one of the key drivers of growth for Jungheinrich as a logistics provider. On the one hand, we will be using our products to support clients who understand the importance of their own internal logistics in transacting online sales. And on the other, we will also be using e-commerce to open up another valuable distribution channel for our products. In addition, procurement via the Internet offers ample scope for cost savings. For the 2000 year as a whole, we look forward to a continuation of the current positive profit trend, despite the anticipated sustained pressure on new-vehicle prices. This positive trend will be driven by our healthy order book situation and the progress made in restructuring our foreign subsidiaries. For the heavy truck segment, which is not part of our core business, we are striving for a partnership-based solution by the end of the year. Based on the new course launched during the first few months of the year, including an extension of partnership-based development projects and expanded services throughout Europe, we are optimistic going into the second half of the year. 23 August 2000 Board of Management Group figures at a glance 1st half year 1st half year 1999 2000 Change million € million € Incoming orders 455 519 14% Domestic 150 159 6% Foreign 305 360 18% 28,400 31,700 12% Orders on hand (as at 30 June) 207 252 22% Number of staff (as at 30 June) 8,715 9,068 4% Domestic 4,111 4,266 4% Foreign 4,604 4,802 4% 17 10 – 41% 1,353 640 719 12% Domestic 459 211 213 1% Foreign 894 429 506 18% 52.3 29.7 31.5 6% 38.3 24.5 26.7 9% Industrial truck production (units) Capital spending 1) Reporting as per US-GAAP Sales2) EBIT 2) 3) EBT 2) 4) 31-12-1999 1) Plant, machinery and equipment, excluding rental and leasing vehicles Previous year’s figures have been retrospectively adjusted for the US GAAP balance sheet rules as obtained in said reporting period. 3) Earnings before interest and taxes. 4) Earnings before taxes. 2) Jungheinrich Aktiengesellschaft Friedrich-Ebert-Damm 129 D-22047 Hamburg Telephone: 0049 40 69 48 14 48 Telefax: 0049 40 69 48 15 99 Internet: http://www.jungheinrich.com e-mail: [email protected]