Earnings
EBIT and EBITDA
Earnings before interest and tax (EBIT) went up by 9.6 per cent year on year to reach €318.2 million (Q1 – Q3 2015: €290.2 million).
Although there was a growth-related rise in gross profit of 6.9 per cent, selling and administrative expenses also increased. Adjusted EBIT excluding non-recurring items and KION acquisition items amounted to €366.1 million (Q1 – Q3 2015: €331.0 million). The adjusted EBIT margin improved to 9.5 per cent (Q1 – Q3 2015: 9.1 per cent). > TABLE 05
EBIT |
|
|
|
|
|
05 |
in € million |
Q3 2016 |
Q3 2015 |
Change |
Q1 – Q3 2016 |
Q1 – Q3 2015 |
Change |
Net income for the period |
67.3 |
49.5 |
36.1% |
164.4 |
143.8 |
14.3% |
Income taxes |
–28.7 |
–34.3 |
16.3% |
–74.2 |
–78.2 |
5.1% |
Net financial expenses |
–16.4 |
–24.9 |
34.4% |
–79.6 |
–68.2 |
–16.7% |
EBIT |
112.4 |
108.8 |
3.4% |
318.2 |
290.2 |
9.6% |
+ Non-recurring items |
7.7 |
5.9 |
31.5% |
27.7 |
20.5 |
35.1% |
+ KION acquisition items |
6.6 |
6.6 |
0.1% |
20.2 |
20.3 |
–0.3% |
Adjusted EBIT |
126.8 |
121.2 |
4.6% |
366.1 |
331.0 |
10.6% |
|
|
|
|
|
|
|
Adjusted EBIT margin |
9.9% |
9.8% |
– |
9.5% |
9.1% |
– |
Earnings before interest, tax, depreciation and amortisation (EBITDA) increased to €630.6 million, compared with €581.6 million in the corresponding period of 2015. Adjusted EBITDA rose to €654.0 million (Q1 – Q3 2015: €599.9 million). This equates to an adjusted EBITDA margin of 17.0 per cent (Q1 – Q3 2015: 16.4 per cent). > TABLE 06
EBITDA |
|
|
|
|
|
06 |
in € million |
Q3 2016 |
Q3 2015 |
Change |
Q1 – Q3 2016 |
Q1 – Q3 2015 |
Change |
EBIT |
112.4 |
108.8 |
3.4% |
318.2 |
290.2 |
9.6% |
Amortisation and depreciation |
105.4 |
98.3 |
7.3% |
312.4 |
291.3 |
7.2% |
EBITDA |
217.9 |
207.1 |
5.2% |
630.6 |
581.6 |
8.4% |
+ Non-recurring items |
6.2 |
4.9 |
24.9% |
23.4 |
18.4 |
27.4% |
+ KION acquisition items |
0.0 |
–0.0 |
100.0% |
0.0 |
0.0 |
–100.0% |
Adjusted EBITDA |
224.1 |
212.0 |
5.7% |
654.0 |
599.9 |
9.0% |
|
|
|
|
|
|
|
Adjusted EBITDA margin |
17.5% |
17.1% |
– |
17.0% |
16.4% |
– |
Key influencing factors for earnings
The cost of sales grew at a slower rate than revenue, rising by 4.5 per cent to €2,695.8 million (Q1 – Q3 2015: €2,580.2 million). Gross profit improved to €1,151.9 million (Q1 – Q3 2015: €1,077.1 million), while the KION Group’s gross margin advanced to 29.9 per cent (Q1 – Q3 2015: 29.4 per cent).
Selling expenses grew by 7.2 per cent to €475.1 million in the first nine months of this year (Q1 – Q3 2015: €443.2 million) as a result of the increase in sales activities – partly in connection with the consolidation of Egemin Automation. Development costs in the same period decreased slightly year on year to €105.0 million (Q1 – Q3 2015: €106.1 million). At €290.7 million, administrative expenses were higher than in the corresponding prior-year period (Q1 – Q3 2015: €261.0 million), partly because of consultancy expenses incurred in connection with the Dematic acquisition. The ‘other’ item came to €37.1 million (Q1 – Q3 2015: €23.4 million). This included the share of profit (loss) of equity-accounted investments, which amounted to a profit of €9.9 million (Q1 – Q3 2015: profit of €7.8 million). > TABLE 07
(Condensed) income statement |
07 |
|||||
in € million |
Q3 2016 |
Q3 2015 |
Change |
Q1 – Q3 2016 |
Q1 – Q3 2015 |
Change |
Revenue |
1,283.2 |
1,236.5 |
3.8% |
3,847.7 |
3,657.2 |
5.2% |
Cost of sales |
–891.7 |
–867.5 |
–2.8% |
–2,695.8 |
–2,580.2 |
–4.5% |
Gross profit |
391.5 |
369.0 |
6.1% |
1,151.9 |
1,077.1 |
6.9% |
Selling expenses |
–156.3 |
–148.5 |
–5.3% |
–475.1 |
–443.2 |
–7.2% |
Research and development costs |
–33.0 |
–35.4 |
6.8% |
–105.0 |
–106.1 |
1.1% |
Administrative expenses |
–98.5 |
–82.9 |
–18.8% |
–290.7 |
–261.0 |
–11.4% |
Other |
8.7 |
6.6 |
32.5% |
37.1 |
23.4 |
58.1% |
Earnings before interest and taxes (EBIT) |
112.4 |
108.8 |
3.4% |
318.2 |
290.2 |
9.6% |
Net financial expenses |
–16.4 |
–24.9 |
34.4% |
–79.6 |
–68.2 |
–16.7% |
Earnings before taxes |
96.1 |
83.8 |
14.6% |
238.6 |
222.0 |
7.5% |
Income taxes |
–28.7 |
–34.3 |
16.3% |
–74.2 |
–78.2 |
5.1% |
Net income for the period |
67.3 |
49.5 |
36.1% |
164.4 |
143.8 |
14.3% |
Net financial income/expenses
There was a decline in the balance of financial income and financial expenses, leading to net financial expenses of €79.6 million (Q1 – Q3 2015: net financial expenses of €68.2 million). Non-recurring financial expenses of €25.7 million arose in February 2016 as a result of the new financing structure, but these have already been largely offset by the optimised financing.
Income taxes
Income tax expenses amounted to €74.2 million (Q1 – Q3 2015: €78.2 million). Current income taxes came to €52.1 million (Q1 – Q3 2015: €105.4 million). The tax rate was 31.1 per cent (Q1 – Q3 2015: 35.2 per cent).
Net income for the period
The KION Group’s net income after taxes was €164.4 million (Q1 – Q3 2015: €143.8 million). Diluted and basic earnings per share for the reporting period came to €1.59 (Q1 – Q3 2015: €1.44).