Supply Chain Solutions segment
Business performance and order intake
At €1,947.6 million, order intake in the Supply Chain Solutions segment was 4.2 per cent up on the very high figure reported for the prior-year period (Q1 – Q3 2018: €1,868.9 million). A key factor in this increase was the sharp rise in order intake during the third quarter, when a number of significant orders were secured from new customers in Europe and Asia. Moreover, the resurgent US dollar increased the value of order intake by €63.7 million. > TABLE 08
in € million |
Q3 2019 |
Q3 2018 |
Change |
Q1 – Q3 2019 |
Q1 – Q3 2018 |
Change |
||||||
Order intake |
838.6 |
598.5 |
40.1% |
1,947.6 |
1,868.9 |
4.2% |
||||||
Total revenue |
600.6 |
472.7 |
27.1% |
1,811.5 |
1,522.2 |
19.0% |
||||||
EBITDA |
80.0 |
55.9 |
43.1% |
215.8 |
165.0 |
30.8% |
||||||
Adjusted EBITDA |
80.5 |
56.1 |
43.5% |
220.7 |
166.2 |
32.8% |
||||||
EBIT |
42.7 |
20.9 |
>100% |
106.6 |
42.2 |
>100% |
||||||
Adjusted EBIT |
64.4 |
43.8 |
47.0% |
176.2 |
130.3 |
35.2% |
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|
|
|
|
|
|
|
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Adjusted EBITDA margin |
13.4% |
11.9% |
– |
12.2% |
10.9% |
– |
||||||
Adjusted EBIT margin |
10.7% |
9.3% |
– |
9.7% |
8.6% |
– |
Revenue
The external revenue of the Supply Chain Solutions segment rose by 19.0 per cent to reach €1,811.5 million (Q1 – Q3 2018: €1,522.2 million). This marked increase was attributable to the healthy order book in the project business (business solutions). The rise in segment revenue was driven both by business solutions and by the service business, which reported revenue growth of 20.8 per cent and 14.1 per cent respectively in the period under review. The share of segment revenue generated by the service business stood at 24.5 per cent (Q1 – Q3 2018: 25.5 per cent). Business in North America contributed 65.9 per cent of external segment revenue. This decrease compared with the figure of 68.2 per cent in the prior-year period was mainly a reflection of the growing volume of business in Europe.
Earnings
Buoyed by the rise in revenue and a disproportionately small increase in selling expenses and administrative expenses, the segment’s adjusted EBIT jumped by 35.2 per cent to €176.2 million (Q1 – Q3 2018: €130.3 million). This improvement in earnings was also due to the fact that project-related personnel capacity had been underutilised in the prior-year period. The adjusted EBIT margin improved significantly to reach 9.7 per cent (Q1 – Q3 2018: 8.6 per cent). After taking into account non-recurring items and purchase price allocation effects, EBIT came to €106.6 million (Q1 – Q3 2018: €42.2 million).
Adjusted EBITDA amounted to €220.7 million (Q1 – Q3 2018: €166.2 million); the adjusted EBITDA margin was 12.2 per cent (Q1 – Q3 2018: 10.9 per cent).