LMH segment

Business performance and order intake

The Linde Material Handling segment reported a significant increase in orders and revenue, consolidating its position as one of the leading global manufacturers and the market leader in Europe. Order intake rose to €3,234.4 million, an increase of 11.5 per cent on the 2013 figure of €2,901.8 million, and thereby exceeded the €3 billion mark for the first time. Measured on the basis of the number of vehicles ordered, LMH and its brand companies were able to defend their market position in western Europe and in Asia, and expand in eastern Europe. In the case of counterbalance trucks and warehouse trucks, LMH visibly outperformed the global market in terms of growth. Contributing factors included the electric forklift trucks in the six to eight tonne load capacity category launched in the year under review and the broadening of the range of reach trucks and double stackers. In addition, order intake in terms of value included an increasing contribution from the service business, which was also boosted by the acquisition of the dealer Willenbrock at the end of 2013.

In 2014, LMH put in place the basis for Strategy 2020, preparing for the comprehensive modernisation of its Aschaffenburg facility and the construction of a new plant in the Czech Republic. Further activities included the design of the product and sales offensive in North America and the expansion of the sales and service network for all three brand companies in the segment: Linde, Baoli and Fenwick. The realignment of the heavy trucks business was also completed in the year under review.

Revenue

The LMH segment improved revenue by 6.8 per cent to €3,077.2 million (2013: €2,881.1 million). There were particularly strong gains in the service and spare-parts business, the rental business and the used trucks business. A significant contribution to revenue came from the full-year consolidation of the dealer Willenbrock. LMH generated a noticeable upturn in revenue from new trucks, driven primarily by greater unit sales of electric forklift trucks and warehouse trucks. This more than offset the modest contraction in revenue from diesel trucks, which was also partially caused by the realignment of the heavy trucks business. From a regional perspective, Germany, the United Kingdom and China were the main contributors to the revenue growth.

Earnings

Adjusted EBIT rose by 9.9 per cent year on year to €339.6 million (2013: €309.1 million). The inclusion of the dealer Willenbrock and the realignment of the heavy trucks business also had a positive impact on this figure. The adjusted EBIT margin was 11.0 per cent, a further improvement on the already high figure of 10.7 per cent in 2013.

With the inclusion of non-recurring items, EBIT fell year on year to €270.3 million (2013: €282.4 million). The main reason behind this decrease was the negative impact on EBIT from the equity-accounted investment in Linde Hydraulics, as already described at Group level.

Adjusted EBITDA for the LMH segment amounted to €486.6 million (2013: €444.5 million). This equated to an adjusted EBITDA margin of 15.8 per cent (2013: 15.4 per cent). > TABLE 021