Supply Chain Solutions segment

Business performance and order intake

In 2017, the Supply Chain Solutions segment received orders from customers with a total volume of €2,099.2 million (2016: €431.2 million, including Dematic for two months). Around 75 per cent of order intake was accounted for by project business (business solutions) and around 25 per cent by the service business (customer services). Following muted intake in the first three quarters of the year, a number of delayed customer projects were eventually officially placed with Dematic at the end of the year. Approximately a third of order intake was received in the fourth quarter of 2017.

Revenue

Total segment revenue amounted to €2,006.3 million (2016: €366.0 million, including Dematic for two months). Project business accounted for 75.4 per cent of external revenue and the service business for 24.6 per cent. Improved efficiency at the plant in Monterrey, Mexico, resulted in a year-on-year increase in output, leading to a higher level of revenue from business solutions. The segment generated 56.9 per cent of its revenue in North America.

Earnings

The segment’s adjusted EBIT amounted to €181.4 million (2016: €6.0 million, including Dematic for two months), giving an adjusted EBIT margin of 9.0 per cent (2016: 1.6 per cent). Currency effects and higher cost prices for materials had an adverse impact. After taking into account non-recurring items and purchase price allocation effects, EBIT came to minus €23.8 million (2016: minus €31.7 million).

Adjusted EBITDA amounted to €210.3 million with an adjusted EBITDA margin of 10.5 per cent (2016: 3.0 per cent). > TABLE 024