Industrial Trucks & Services segment

Business performance and order intake

The operating units in the Industrial Trucks & Services segment increased orders for new trucks by 14.4 percent to 49.9 thousand units in the first quarter, with the KION Group generating double-digit growth in all product groups. There was also strong growth at regional level. Of this total, 62.1 per cent was accounted for by the Linde brand including Fenwick, 29.9 per cent by the STILL brand including OM STILL and the remaining 8.0 per cent by the brands Baoli and Voltas.

The total value of order intake rose by 12.5 percent to €1,414.6 million (Q1 2016: €1,257.3 million). > TABLE 07

Revenue

The segment’s total revenue amounted to €1,323.2 million, an increase of 10.5 percent compared with the first three months of last year (Q1 2016: €1,197.0 million). The new truck business generated especially strong growth of 13.4 percent. While revenue from electric forklift trucks and warehouse trucks was significantly higher year on year, there was a slight decline in revenue from diesel trucks overall. Within the service business, the aftersales and rental businesses made substantial gains. The proportion of external revenue in the Industrial Trucks & Services segment accounted for by service business came to 45.2 percent overall (Q1 2016: 46.6 percent).

Earnings

The positive trend in revenue combined with the efficiency measures implemented meant that adjusted EBIT at €129.1 million was higher than in the prior-year period (Q1 2016: €111.8 million). The adjusted EBIT margin for the segment increased to 9.8 percent (Q1 2016: 9.3 percent). Even after taking into account non-recurring items and purchase price allocation effects, EBIT was significantly higher year on year at €128.4 million (Q1 2016: €103.4 million).

Adjusted EBITDA stood at €228.1 million (Q1 2016: €200.6 million). This equated to an adjusted EBITDA margin of 17.2 percent (Q1 2016: 16.8 percent).