LMH segment

Business performance and order intake

The LMH segment reported a significant increase in orders and revenue, strengthening its position as one of the leading global manufacturers of industrial trucks and the market leader in Europe. Order intake went up by 12.4 per cent to €3,516.3 million (2014: €3,128.4 million). There were particularly strong increases in the number of orders in western Europe and the eastern European EU states. In China, LMH benefited from the demand for electric forklift trucks and warehouse trucks and bucked the market trend with an increase in total unit sales that was partly due to strong sales of Baoli diesel trucks in the economy segment. Currency effects of €124.7 million also had a positive impact on order intake.

In connection with the Strategy 2020, LMH pressed ahead with the construction of the new plant in the Czech Republic, which went into operation at the beginning of 2016. There was also a continued drive to strengthen the sales and service network in North America. In India, LMH is building awareness of its brand, which is being targeted at the premium segment. It is utilising the existing infrastructure of the Voltas brand (KION India), whose own new truck business expanded in the year under review.

Revenue

Revenue went up by 11.5 per cent to €3,429.8 million (2014: €3,077.2 million). The main influencing factor was the increase in new truck business, a trend that was primarily attributable to the growing demand for warehouse trucks and electric forklift trucks in western Europe. There was also growth across all areas of the service business, with particularly sharp rises in after-sales and rental business. Positive currency effects contributed €125.2 million to the increase in revenue.

Earnings

As a result of the increase in revenue, adjusted EBIT advanced by 13.0 per cent to reach €383.9 million (2014: €339.6 million). The adjusted EBIT margin stood at 11.2 per cent, slightly higher than the margin of 11.0 per cent in 2014. EBIT including non-recurring items improved to €363.4 million (2014: €270.3 million).

Adjusted EBITDA stood at €543.2 million (2014: €486.6 million). This equates to an adjusted EBITDA margin of 15.8 per cent, the same as in 2014. > TABLE 021