Market Development

Uncertainty about future economic development continued to impact demand in the material handling markets worldwide. During Q1-3/2012, the global industrial truck market has been adversely affected, but maintained a solid level of 718,000 units undergoing a 3% decline compared to the previous year. On a quarterly basis, global demand for industrial trucks slightly dropped by 2% in Q3/2012 compared to Q3/2011. In Europe, the debt crisis continued to weigh on sentiment with weak demand spreading from Southern Europe even into core countries. In Q1-3/2012 the Western European market remained 7% below the previous year level with most of the countries posting declines. On the upside, the Eastern European market reached its prior year level of 41,000 units supported by a strong third quarter and a robust Russian market development. The North American market continued to grow in Q3/2012, albeit slower than in the first six months, achieving a 7% increase in Q1-3/2012 over the prior year period. Emerging markets such as China and Brazil had a weak development for most of the year with still no significant activity upturn. In Q1-3/2012, demand for industrial trucks in the Chinese market was 11% below the previous year period and South & Central America remained 15% below the previous year level.