Outlook
Based on the results for Q1-Q3 2017 the KION Group has slightly adjusted its outlook for the current financial year.
The outlook has been adjusted because order intake and revenue in the Supply Chain Solutions segment fell short of expectations. Growth in the Industrial Trucks & Services segment was unable to compensate, even though it was stronger than anticipated. The weaker performance in the Supply Chain Solutions segment is mainly attributable to customers’ hesitation to invest and delayed project decisions by customers.
Order intake for the Group is now expected to be between €7,550 and €7,900 million (previously €7,800 to €8,250 million). The target figure for consolidated revenue is in the range of €7,400 to €7,700 million (previously €7,500 to €7,950 million). The target range for adjusted EBIT is between €715 and €765 million (previously €740 to €800 million). Free cash flow is expected to be in a range between €320 and €380 million (previously €370 to €430 million). The target figure for ROCE is in the range of 9.0 to 10.0 per cent (previously 9.5 to 10.5 per cent).
Order intake of the Industrial Trucks & Services segment is expected to be between €5,650 and €5,800 million (previously €5,450 to €5,600 million). The target figure for revenue is in the range of €5,450 to €5,600 million (previously €5,300 to €5,450 million). The target range for adjusted EBIT remains unchanged at €605 to €630 million.
Order intake of the Supply Chain Solutions segment is expected to be between €1,900 and €2,100 million (previously €2,350 to €2,650 million). The target figure for revenue is in the range of €1,950 to €2,100 million (previously €2,200 to €2,500 million). The target range for adjusted EBIT is between €170 and €195 million (previously €195 to €230 million).
The outlook is based on the assumptions that material prices will not increase any further and that the exchange rate environment will remain stable.
Actual business performance may deviate from our forecasts due, among other factors, to the opportunities and risks described in the 2016 group management report. Performance particularly depends on macroeconomic and industry-specific conditions and may be negatively affected by increasing uncertainty or a worsening of the economic and political situation.
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Outlook |
16 |
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KION Group |
Industrial Trucks & Services |
Supply Chain Solutions |
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in € million |
2017 |
2017 |
2017 |
2017 |
2017 |
2017 |
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Order Intake* |
7,550 – 7,900 |
7,800 – 8,250 |
5,650 – 5,800 |
5,450 – 5,600 |
1,900 – 2,100 |
2,350 – 2,650 |
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Revenue* |
7,400 – 7,700 |
7,500 – 7,950 |
5,450 – 5,600 |
5,300 – 5,450 |
1,950 – 2,100 |
2,200 – 2,500 |
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Adjusted EBIT |
715 – 765 |
740 – 800 |
605 – 630 |
605 – 630 |
170 – 195 |
195 – 230 |
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Free cash flow |
320 – 380 |
370 – 430 |
– |
– |
– |
– |
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ROCE |
9.0% – 10.0% |
9.5% – 10.5% |
– |
– |
– |
– |
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