Earnings and profitability

EBIT, EBITDA and ROCE

Earnings before interest and tax (EBIT) improved by 2.8 per cent to €434.8 million (2015: €422.8 million). Although there was a growth-related rise in gross profit, selling and administrative expenses also increased. Generally, the earnings figures went up as a result of the acquisition of Dematic, which was included in each of the figures for the first time, but only for two months. In addition, functional costs rose because of the negative effects from purchase price allocation – especially that relating to Dematic – and because of the non-recurring transaction costs associated with the Dematic acquisition. The non-recurring items in 2015 amounting to €33.0 million related mainly to expenses and impairment losses in connection with the efficiency measures initiated under the Strategy 2020.

EBIT adjusted for non-recurring items and purchase price allocation effects (adjusted EBIT) amounted to €537.3 million (2015: €482.9 million). The adjusted EBIT margin improved to 9.6 per cent (2015: 9.5 per cent). > TABLE 019

EBIT

 

 

019

in € million

2016

2015

Change

EBIT

434.8

422.8

2.8%

+ Non-recurring items

42.2

33.0

27.8%

+ PPA items

60.4

27.0

> 100%

Adjusted EBIT

537.3

482.9

11.3%

As a consequence of the inclusion of Dematic for two months, return on capital employed (ROCE) was 6.8 per cent (2015: 11.9 per cent). While adjusted EBIT increased, there was also a substantial rise in capital employed.

Earnings before interest, tax, depreciation and amortisation (EBITDA) reached €889.5 million, compared with €824.2 million in the prior year. Adjusted EBITDA rose to €931.6 million (2015: €850.0 million). This equated to an adjusted EBITDA margin of 16.7 per cent. > TABLE 020

EBITDA

 

 

020

in € million

2016

2015

Change

EBITDA

889.5

824.2

7.9%

+ Non-recurring items

42.2

25.8

63.5%

+ PPA items

0.0

0.0

–100.0%

Adjusted EBITDA

931.6

850.0

9.6%

Key influencing factors for earnings

Net financial income / expenses

Income taxes

Net income and appropriation of profit