Segment report
The Executive Board divides the KION Group into financial services activities, the activities grouped in the ‘Other’ segment and the Linde Material Handling (LMH) and STILL brands for management purposes. Segment reporting follows the same breakdown, taking into account the relevant organisational structures and corporate strategy of the KION Group.
The KPIs used to manage the brand segments are order intake, revenue and adjusted EBIT. Segment reporting therefore includes a reconciliation of externally reported consolidated earnings before interest and tax (EBIT) – including KION acquisition items and non-recurring items – to the adjusted EBIT for the segments (‘adjusted EBIT’).
Earnings before tax (EBT) and return on equity (ROE) are the KPIs used to manage the Financial Services segment. ROE is calculated on the basis of average equity employed excluding net income (loss) for the current period. As at 30 September 2014, ROE – earnings before tax as a percentage of average equity – remained unchanged compared with 31 December 2013 at 13.0 per cent.
The following tables show information on the KION Group’s operating segments for the third quarters of 2014 and 2013 and for the first nine months of 2014 and 2013. >> Tables 29 – 32
Segment report Q3 2014
|
Segment report Q3 2014 |
>>TABLE 29 |
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|
in € million |
LMH |
STILL |
Financial Services |
Other |
Consolidation / |
Total |
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|
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|
|
|
|
|
|
|
|
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|
Revenue from external customers |
682.3 |
360.2 |
84.6 |
11.9 |
− |
1,139.0 |
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|
Intersegment revenue |
78.5 |
80.5 |
65.2 |
50.1 |
–274.4 |
– |
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|
Total revenue |
760.8 |
440.7 |
149.8 |
62.0 |
–274.4 |
1,139.0 |
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|
Earnings before taxes |
84.4 |
24.5 |
1.3 |
–4.6 |
–17.8 |
87.8 |
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|
Financial income |
45.5 |
0.5 |
16.9 |
1.9 |
–12.5 |
52.2 |
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|
Financial expenses |
–4.5 |
–8.7 |
–16.4 |
–16.8 |
12.9 |
–33.5 |
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|
= Net financial expenses |
41.0 |
–8.3 |
0.5 |
–14.9 |
0.4 |
18.7 |
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|
EBIT |
43.4 |
32.8 |
0.8 |
10.4 |
–18.2 |
69.1 |
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|
+ Non-recurring items |
34.8 |
0.2 |
0.0 |
2.4 |
− |
37.5 |
||||
|
+ KION acquisition items |
4.6 |
0.6 |
0.0 |
0.0 |
− |
5.2 |
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|
Adjusted EBIT |
82.8 |
33.6 |
0.8 |
12.8 |
–18.2 |
111.8 |
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|
Loss from at-equity investments |
–33.8 |
–0.0 |
0.0 |
0.0 |
– |
–33.8 |
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|
Capital expenditures1 |
15.1 |
11.4 |
0.0 |
3.0 |
− |
29.4 |
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|
Depreciation2 |
21.3 |
10.2 |
0.0 |
4.1 |
− |
35.6 |
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|
Order intake |
740.4 |
446.8 |
148.6 |
61.9 |
–255.4 |
1,142.2 |
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Segment report Q3 2013
Segment report Q1 – Q3 2014
Segment report Q1 – Q3 2013
The non-recurring items mainly comprise consultancy costs, as well as expenses in connection with severance payments, social plan costs and costs relating to the relocation of production and closure of production facilities. In addition, the purchase-price-related depreciation, amortisation and impairment (PPA) are eliminated from the non-operating profit (loss) of Linde Hydraulics reported in the profit (loss) from equity-accounted investments. The non-recurring items included expenses in connection with the impairment charge of €32.0 million recognised on the equity-accounted investment in Linde Hydraulics, which relate to the LMH segment. Non-recurring items resulted in an overall net expense of €47.0 million in the first nine months of 2014 (Q1 – Q3 2013: net expense of €11.9 million).
The KION acquisition items relate to the acquisition of the KION Group, which was formed at the end of 2006 when it was spun off from Linde AG, Munich. These items comprise net write-downs on the hidden reserves identified as part of the purchase price allocation.