Earnings and profitability

EBIT, EBITDA and ROCE

Earnings before interest and tax (EBIT) advanced by 21.8 per cent to €422.8 million. The prior-year figure of €347.0 million had included an impairment loss of €13.5 million relating to the equity investment in Linde Hydraulics. This had led to a substantial increase in non-recurring items, which amounted to a net expense of €57.0 million in 2014, compared with a net expense of only €33.0 million in 2015. This mainly comprised expenses and impairment losses in connection with the efficiency measures initiated under the Strategy 2020.

Earnings before interest and tax, adjusted for non-recurring items and KION acquisition items (adjusted EBIT), rose to €482.9 million, an increase of 9.0 per cent compared with the previous year (2014: €442.9 million) and the highest ever figure in the history of the Company. The adjusted EBIT margin was unchanged year on year at 9.5 per cent. Most of the significant improvement in gross profit (up by 11.6 per cent) was offset by higher expenses in the individual functional divisions resulting from currency effects, changes to collective bargaining agreements and other factors.

At 11.9 per cent, return on capital employed (ROCE) was slightly above the prior-year figure (2014: 11.4 per cent). The increase in adjusted EBIT was partly offset by a moderate rise in the capital employed. > TABLE 018

EBIT

 

 

018

in € million

2015

2014

Change

Net income

221.1

178.2

24.0%

Income taxes

–109.2

–80.0

–36.4%

Net financial expenses

–92.6

–88.8

–4.3%

EBIT

422.8

347.0

21.8%

+ Non-recurring items

33.0

57.0

–42.1%

+ KION acquisition items

27.0

38.9

–30.4%

Adjusted EBIT

482.9

442.9

9.0%

Earnings before interest, tax, depreciation and amortisation (EBITDA) reached €824.2 million, compared with €714.2 million in the prior year. Adjusted EBITDA rose to €850.0 million (2014: €780.4 million). This equates to an adjusted EBITDA margin of 16.7 per cent, the same as it had been in 2014. > TABLE 019

EBITDA

 

 

019

in € million

2015

2014

Change

EBIT

422.8

347.0

21.8%

Amortisation and depreciation

401.4

367.2

9.3%

EBITDA

824.2

714.2

15.4%

+ Non-recurring items

25.8

55.6

–53.6%

+ KION acquisition items

0.0

10.7

–99.7%

Adjusted EBITDA

850.0

780.4

8.9%

Key influencing factors for earnings

Net financial income / expenses

Income taxes

Net income and appropriation of profit