Industrial Trucks & Services segment
Business performance and order intake
In the first half of 2021, the Industrial Trucks & Services segment generated strong growth across all product categories in the new truck business. The number of orders rose by 74.8 percent year on year to 155.5 thousand units. This increase compared with the first half of 2020 was primarily attributable to increased demand in the main EMEA sales region, where counterbalance trucks, and particularly electric forklift trucks, were among the products that contributed to the growth.
In the APAC region, the KION Group’s growth outstripped that of the market, mainly due to higher unit sales of counterbalance trucks (diesel and electric forklift trucks) and warehouse equipment in China. In the Americas region, the Industrial Trucks & Services segment registered almost double the number of orders, meaning that its growth also outstripped that of the market.
The value of order intake rose by 51.0 percent to €4,021.1 million (H1 2020: €2,663.4 million). Currency effects reduced order intake by a total of €41.2 million.
in € million |
Q2 |
Q2 |
Change |
Q1 – Q2 |
Q1 – Q2 |
Change |
||||
|---|---|---|---|---|---|---|---|---|---|---|
Order intake |
2,220.7 |
1,264.8 |
75.6% |
4,021.1 |
2,663.4 |
51.0% |
||||
Total revenue |
1,601.0 |
1,267.5 |
26.3% |
3,119.7 |
2,714.8 |
14.9% |
||||
Order book2 |
|
|
|
2,264.6 |
1,384.1 |
63.6% |
||||
EBITDA |
328.3 |
180.6 |
81.8% |
644.6 |
463.1 |
39.2% |
||||
Adjusted EBITDA |
335.6 |
200.5 |
67.4% |
650.8 |
483.1 |
34.7% |
||||
EBIT |
139.8 |
–3.4 |
> 100% |
270.9 |
94.4 |
> 100% |
||||
Adjusted EBIT |
147.6 |
16.8 |
> 100% |
278.6 |
114.8 |
> 100% |
||||
|
|
|
|
|
|
|
||||
Adjusted EBITDA margin |
21.0% |
15.8% |
– |
20.9% |
17.8% |
– |
||||
Adjusted EBIT margin |
9.2% |
1.3% |
– |
8.9% |
4.2% |
– |
||||
|
||||||||||
Revenue
The Industrial Trucks & Services segment’s total revenue rose sharply, by 14.9 percent, to €3,119.7 million in the reporting period (H1 2020: €2,714.8 million). Revenue in the new truck business was up by 14.0 percent, despite the current difficulties with the procurement of materials. All relevant product categories contributed to this growth, with the biggest increases generated from warehouse trucks and electric forklift trucks. There was also a year-on-year rise in the service business, which was up by 15.7 percent overall.
At 52.3 percent, the proportion of the segment’s external revenue accounted for by the service business was slightly higher than in the prior year (H1 2020: 52.0 percent). Currency effects reduced segment revenue by €27.6 million.
Earnings
Rising by €163.9 million, the adjusted EBIT in the Industrial Trucks & Services segment for the first half of 2021 more than doubled compared with the very low figure for the prior-year period to reach €278.6 million (H1 2020: €114.8 million). This improvement was due to the substantial increase in revenue and the slower rise in fixed costs. This includes the savings already achieved in connection with the capacity and structural program. However, there was a countervailing effect from the increase in personnel expenses, which was mainly attributable to variable remuneration components. In the first half of the year, the prevailing increases in commodity prices and the global delivery bottlenecks had not yet had a material influence on the segment’s productivity and profitability, even though there had already been some delays to the completion of new trucks. The adjusted EBIT margin recovered to 8.9 percent (H1 2020: 4.2 percent). After taking into account non-recurring items and purchase price allocation effects, EBIT rose to €270.9 million (H1 2020: €94.4 million). Adjusted EBITDA improved to €650.8 million (H1 2020: €483.1 million), giving an adjusted EBITDA margin of 20.9 percent (H1 2020: 17.8 percent).