Condensed Statement of Income

Condensed income statement of the KION Group

€ million

Q3
2012

Q3
2011

Change

Q1-Q3
2012

Q1-Q3
2011

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
2012

Q3
2011

Change

Q1-Q3
2012

Q1-Q3
2011

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
2012

Q3
2011

Change

Q1-Q3
2012

Q1-Q3
2011

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
2012

Q3
2011

Change

Q1-Q3
2012

Q1-Q3
2011

Change

1

Amortization and depreciation includes amortization, depreciation and impairment of assets

 

 

 

 

 

 

 

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%

Q3/2012

Q1-3/2012

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