Overall assessment of the economic situation
In the first half of 2017, the KION Group achieved significant growth in order intake and revenue. The increase in revenue in the second quarter surpassed the increase reported for the first three months of this year. Another factor besides the inclusion of Dematic and the resulting sharp rise in the Supply Chain Solutions segment was the dynamic growth in the new truck and service businesses of the Industrial Trucks & Services segment, with the KION Group benefiting from the continued strength of orders on hand in the EMEA and APAC regions. The Americas region also recorded substantial increases as a result of Dematic’s inclusion.
Based on adjusted EBIT of €367.1 million, the adjusted EBIT margin improved by 0.3 percentage points year on year to reach 9.6 per cent. In both the Industrial Trucks & Services and the Supply Chain Solutions segments, the adjusted EBIT margin was higher in the second quarter than in the first. Net income for the period amounted to €150.3 million for the first six months of 2017, which was €53.2 million more than in the corresponding prior-year period. Earnings per share stood at €1.35 (H1 2016: €0.97).
As a result of the aforementioned corporate actions, net financial debt decreased to 2.1 times the adjusted EBITDA on an annualised basis (end of 2016: 3.1 times).
Business situation and financial performance of the KION Group
Level of orders
Order intake increased to €3,852.3 million, which was up by 41.4 per cent compared with the prior-year period due to organic growth and acquisitions (H1 2016: €2,723.8 million). The order intake of the Industrial Trucks & Services segment amounted to €2,928.3 million, a year-on-year rise of 11.1 per cent (H1 2016: €2,635.2 million). In the Supply Chain Solutions segment, which comprises Dematic (since November 2016) including Egemin Automation and Dematic Retrotech (since March 2016), the value of order intake from realised project business came to €913.6 million (H1 2016: €79.8 million). At €2,196.0 million, the order book was slightly below the high level seen at the end of last year (31 December 2016: €2,244.7 million).