Supply Chain Solutions segment
Business performance and order intake
Order intake in the Supply Chain Solutions segment jumped by 35.1 percent to €2,631.5 million (Q1–Q3 2019: €1,947.6 million). Following the strong level of order intake in the first half of the year, which was due in large part to big-ticket orders from e-commerce customers, additional modernization and expansion orders in the third quarter resulted in order intake that was even higher than the excellent level in the prior-year period. The US dollar regained some of its strength overall, resulting in negative currency effects that reduced order intake by a total of €10.2 million.
The encouraging level of order intake and the resulting increase in the volume of orders on the books have ensured a good level of project-related capacity utilization for the quarters ahead.
in € million |
Q3 |
Q3 |
Change |
Q1 – Q3 |
Q1 – Q3 |
Change |
|---|---|---|---|---|---|---|
Order intake |
887.6 |
838.6 |
5.8% |
2,631.5 |
1,947.6 |
35.1% |
Total revenue |
664.0 |
600.6 |
10.6% |
1,879.8 |
1,811.5 |
3.8% |
EBITDA |
87.4 |
80.0 |
9.2% |
230.5 |
215.8 |
6.8% |
Adjusted EBITDA |
87.5 |
80.5 |
8.8% |
231.7 |
220.7 |
5.0% |
EBIT |
50.3 |
42.7 |
17.7% |
117.1 |
106.6 |
9.8% |
Adjusted EBIT |
71.9 |
64.4 |
11.6% |
184.0 |
176.2 |
4.4% |
|
|
|
|
|
|
|
Adjusted EBITDA margin |
13.2% |
13.4% |
– |
12.3% |
12.2% |
– |
Adjusted EBIT margin |
10.8% |
10.7% |
– |
9.8% |
9.7% |
– |
Revenue
The Supply Chain Solutions segment’s total revenue for the first three quarters of the year stood at €1,879.8 million, which was slightly higher, by 3.8 percent, than the figure for the prior-year period (Q1–Q3 2019: €1,811.5 million). The negative currency effects included in that figure totaled €8.8 million. Revenue from the segment’s long-term project business (business solutions) increased by 2.0 percent. Revenue from the service business was up by a satisfying 8.9 percent year on year thanks to additional modernization and expansion orders. The proportion of the segment’s external revenue accounted for by the service business thus rose to 25.7 percent (Q1–Q3 2019: 24.5 percent). The proportion of external revenue generated in North America stood at 60.8 percent, which was down from 65.9 percent in the first three quarters of 2019 due in part to an increase in revenue in Europe.
Earnings
The Supply Chain Solutions segment’s adjusted EBIT amounted to €184.0 million, which was 4.4 percent above the figure for the first nine months of 2019 (Q1–Q3 2019: €176.2 million). The adjusted EBIT margin stood at 9.8 percent, which was slightly higher than the margin of 9.7 percent in the first three quarters of 2019. More efficient project execution and stronger growth in the higher-margin service business compensated for the increase in selling expenses and administrative expenses aimed at supporting future growth that were incurred in the reporting period. After taking into account non-recurring items and purchase price allocation effects, EBIT came to €117.1 million (Q1–Q3 2019: €106.6 million).
Adjusted EBITDA amounted to €231.7 million (Q1–Q3 2019: €220.7 million); the adjusted EBITDA margin was 12.3 percent (Q1–Q3 2019: 12.2 percent).