Supply Chain Solutions segment
Business performance and order intake
Following the leap in the volume of orders in the second quarter, the third quarter also saw a high volume of new contracts concluded with customers. In the nine-month period, the volume of orders rose sharply to €1,868.9 million (Q1 – Q3 2017: €1,406.3 million) despite negative currency effects. The weaker US dollar, in particular, reduced the value of order intake in the segment by a total of €99.9 million. > TABLE 08
Key figures – Supply Chain Solutions |
08 |
|||||||
in € million |
Q3 2018 |
Q3 2017* |
Change |
Q1 – Q3 2018 |
Q1 – Q3 2017* |
Change |
||
|
||||||||
Order intake |
598.5 |
492.7 |
21.5% |
1,868.9 |
1,406.3 |
32.9% |
||
Total revenue |
472.7 |
516.1 |
–8.4% |
1,522.2 |
1,597.6 |
–4.7% |
||
EBITDA |
55.9 |
62.6 |
–10.6% |
165.0 |
175.1 |
–5.8% |
||
Adjusted EBITDA |
56.1 |
73.1 |
–23.2% |
166.2 |
194.1 |
–14.4% |
||
EBIT |
20.9 |
4.9 |
>100% |
42.2 |
3.8 |
>100% |
||
Adjusted EBIT |
43.8 |
61.2 |
–28.4% |
130.3 |
159.8 |
–18.5% |
||
|
|
|
|
|
|
|
||
Adjusted EBITDA margin |
11.9% |
14.2% |
– |
10.9% |
12.1% |
– |
||
Adjusted EBIT margin |
9.3% |
11.9% |
– |
8.6% |
10.0% |
– |
||
Revenue
There was a moderate decline in the segment’s total revenue to €1,522.2 million (Q1 – Q3 2017: €1,597.6 million) owing to the delays in the awarding of projects by customers in previous quarters. After taking negative currency effects of €83.6 million into account, revenue rose by 0.5 per cent. Revenue from project business (business solutions) accounted for 74.5 per cent of total revenue (Q1 – Q3: 76.8 per cent); the remaining 25.5 per cent (Q1 – Q3 2017: 23.2 per cent) was attributable to the service business. The proportion of revenue generated in North America was up year on year at 68.2 per cent (Q1 – Q3 2017: 56.6 per cent).
Earnings
The segment’s adjusted EBIT decreased to €130.3 million (Q1 – Q3 2017: €159.8 million). This reflected not only the adverse effect of €11.3 million attributable to the US dollar’s depreciation against the euro but also the delays in the awarding of projects by customers in previous quarters, which led to temporary underutilisation of project-related personnel capacity. The adjusted EBIT margin was thus 8.6 per cent (Q1 – Q3 2017: 10.0 per cent). Including non-recurring items and purchase price allocation effects, EBIT came to €42.2 million and thereby considerably exceeded the figure for the first three quarters of 2017 of €3.8 million.
Adjusted EBITDA of €166.2 million (Q1 – Q3 2017: €194.1 million) resulted in an adjusted EBITDA margin of 10.9 per cent (Q1 – Q3 2017: 12.1 per cent).