Condensed income statement of the KION Group | ||||||
€ million |
Q3 |
Q3 |
Change |
Q1-Q3 |
Q1-Q3 |
Change |
|
|
|
|
|
|
|
Revenue |
1,128 |
1,044 |
8.1% |
3,439 |
3,157 |
8.9% |
Cost of sales |
-818 |
-764 |
-7.2% |
-2,481 |
-2,302 |
-7.8% |
Gross profit |
310 |
281 |
10.4% |
957 |
854 |
12.1% |
Selling expenses |
-135 |
-126 |
-7.1% |
-409 |
-386 |
-5.9% |
Research and development costs |
-29 |
-29 |
-0.2% |
-91 |
-86 |
-6.4% |
Administrative expenses |
-80 |
-70 |
-14.6% |
-226 |
-203 |
-11.6% |
Other |
14 |
8 |
76.0% |
45 |
43 |
5.3% |
Earnings before interest and taxes (EBIT) |
80 |
63 |
25.9% |
276 |
222 |
24.2% |
Net finance cost |
-56 |
-84 |
32.7% |
-182 |
-198 |
7.8% |
Earnings before taxes |
24 |
-20 |
>100% |
93 |
24 |
>100% |
Income taxes |
-15 |
-6 |
<-100% |
-59 |
-46 |
-27.6% |
Net income (+) / loss (-) for the period |
9 |
-26 |
>100% |
34 |
-22 |
>100% |
Our revenue growth can be broken down by product category as follows:
Revenue by product category | ||||||
€ million |
Q3 |
Q3 |
Change |
Q1-Q3 |
Q1-Q3 |
Change |
|
|
|
|
|
|
|
New business |
620 |
555 |
11.7% |
1,897 |
1,685 |
12.6% |
Hydraulics |
39 |
42 |
-7.0% |
132 |
125 |
5.1% |
Service offering |
469 |
447 |
4.9% |
1,410 |
1,346 |
4.7% |
- After sales |
285 |
268 |
6.5% |
853 |
788 |
8.2% |
- Rental business |
110 |
113 |
-2.0% |
317 |
325 |
-2.6% |
- Used trucks |
46 |
44 |
4.6% |
157 |
166 |
-5.9% |
- Other |
27 |
22 |
22.3% |
83 |
67 |
25.0% |
Total revenue |
1,128 |
1,044 |
8.1% |
3,439 |
3,157 |
8.9% |
Q3/2012
Revenue
Group revenue in Q3/2012 amounted to €1,128 million, a growth of 8% compared to €1,044 million in Q3/2011. Revenue growth in Q3/2012 mainly came from the UK, France and North America.
New truck business - our largest product category - contributed revenues of €620 million in Q3/2012, an increase of €65 million, or 12%, from €555 million in Q3/2011. Revenue from the hydraulics business decreased by €3 million and amounted to €39 million in Q3/2012. Service offering improved from €447 million in Q3/2011 to €469 million in Q3/2012. Within the service business, the after sales business performed best and grew by 6% from €268 million in Q3/2011 to €285 million in Q3/2012.
Cost of Sales
The cost of sales in Q3/2012 rose by 7% to €818 million from €764 million in Q3/2011 and therefore at a lower rate than our revenue. This reflects our constant efforts to realise further efficiency improvements.
Gross Profit and Gross Margin
Our gross profit rose by 10% to €310 million in Q3/2012 from €281 million in Q3/2011. This came as a result of the higher business volume and an under-proportional increase in cost of sales compared to our revenue growth. Gross margin improved from 26.9% in Q3/2011 to 27.5% in Q3/2012.
Selling Expenses
Along with the revenue growth, selling expenses increased by €9 million, or 7%, to €135 million in Q3/2012 from €126 million in Q3/2011. As a percentage of revenue, selling expenses were slightly reduced from 12.0% in Q3/2011 to 11.9% in Q3/2012.
Research and Development Costs
In Q3/2012, our research and development expenses amounted to €29 million and remained stable compared to the prior year period. The costs incurred mainly related to research and development of new products, facelifts and series support of existing trucks as well as to research and development of new technologies, such as the hybrid IC or the Li-Ion technology.
General and Administrative Expenses
Our general and administrative expenses increased by 15% to €80 million in Q3/2012 compared to €70 million in Q3/2011. As a percentage of revenue, our administrative expenses increased from 6.7% in Q3/2011 to 7.1% in Q3/2012 mainly due to a higher number of employees.
Other Income and Expense
Other income and expense primarily consists of gains and losses related to foreign exchange rate differences resulting from the measurement of financial assets and receivables denominated in a foreign currency. These items are included in the line item “Other” in the condensed income statement. Additionally, gains and losses related to the sale, disposal or impairment of long-lived assets are included. Our net other income increased by €3 million to €9 million from €7 million in Q3/2011.
Profit from Equity Investments/Other Financial Result
Profit from equity investments consists of all gains and losses that we realize on associates and joint ventures, which we account for under the equity method and in which we have no controlling interest. These items are included in the line item “Other” in the condensed income statement. Due to an improved performance of our equity and other investments, the profit from equity investments/other financial result grew to €4 million in Q3/2012 compared to €1 million in Q3/2011.
Q1-3/2012
Earnings before Interest and Taxes (EBIT), Adjusted EBIT, Adjusted EBITDA
The following tables show the adjustments to calculate Adjusted EBIT and Adjusted EBITDA:
Adjusted EBIT | ||||||
€ million |
Q3 |
Q3 |
Change |
Q1-Q3 |
Q1-Q3 |
Change |
|
|
|
|
|
|
|
Net income (+) / loss (-) for the period |
9 |
-26 |
>100% |
34 |
-22 |
>100% |
Income taxes |
-15 |
-6 |
<-100% |
-59 |
-46 |
-27.6% |
Financial result |
-56 |
-84 |
32.7% |
-182 |
-198 |
7.8% |
EBIT |
80 |
63 |
25.9% |
276 |
222 |
24.2% |
+ Non-recurring items |
17 |
12 |
38.0% |
16 |
12 |
32.2% |
+ KION acquisition items |
9 |
8 |
8.3% |
27 |
26 |
6.8% |
= Adjusted EBIT |
106 |
84 |
26.0% |
319 |
260 |
22.8% |
Adjusted EBITDA | |||||||||||||
€ million |
Q3 |
Q3 |
Change |
Q1-Q3 |
Q1-Q3 |
Change | |||||||
| |||||||||||||
|
|
|
|
|
|
| |||||||
EBIT |
80 |
63 |
25.9% |
276 |
222 |
24.2% | |||||||
Amortization and depreciation1 |
88 |
83 |
6.3% |
256 |
244 |
5.1% | |||||||
EBITDA |
168 |
146 |
14.8% |
532 |
466 |
14.2% | |||||||
+ Non-recurring items |
17 |
12 |
37.8% |
15 |
12 |
32.9% | |||||||
+ KION acquisition items |
0 |
2 |
-91.8% |
1 |
4 |
-79.4% | |||||||
= Adjusted EBITDA |
185 |
160 |
15.6% |
548 |
482 |
13.8% |