Industrial Trucks & Services segment
Business performance and order intake
In the period January to September 2021, the Industrial Trucks & Services segment generated strong growth across all product categories in the new truck business, although the growth rates in the third quarter were slower as the recovery had begun in the same quarter of the previous year. The number of new trucks ordered came to 218.6 thousand units, which was up by 59.0 percent compared with the first nine months of 2020.
This increase was largely attributable to higher order intake for counterbalance trucks and warehouse trucks in the EMEA region. In the APAC region, the KION Group saw significant growth in the number of counterbalance truck orders, primarily due to the increased number of units in China. Growth in the business with warehouse trucks was even stronger. The number of orders in the Americas region nearly doubled, which was mainly attributable to a sharp rise in orders in North America.
The value of order intake improved by 40.1 percent to €5,731.1 million (Q1–Q3 2020: €4,089.7 million). Currency effects reduced order intake by a total of €23.3 million.
|
in € million |
Q3 |
Q3 |
Change |
Q1 – Q3 |
Q1 – Q3 |
Change |
||||
|---|---|---|---|---|---|---|---|---|---|---|
|
Order intake |
1,710.0 |
1,426.3 |
19.9% |
5,731.1 |
4,089.7 |
40.1% |
||||
|
Total revenue |
1,630.1 |
1,410.3 |
15.6% |
4,749.8 |
4,125.1 |
15.1% |
||||
|
Order book2 |
|
|
|
2,315.9 |
1,384.1 |
67.3% |
||||
|
EBITDA |
336.7 |
277.5 |
21.3% |
981.3 |
740.7 |
32.5% |
||||
|
Adjusted EBITDA |
333.5 |
279.0 |
19.5% |
984.3 |
762.2 |
29.1% |
||||
|
EBIT |
147.3 |
92.8 |
58.7% |
418.3 |
187.2 |
> 100% |
||||
|
Adjusted EBIT |
144.5 |
94.6 |
52.8% |
423.1 |
209.3 |
> 100% |
||||
|
|
|
|
|
|
|
|
||||
|
Adjusted EBITDA margin |
20.5% |
19.8% |
– |
20.7% |
18.5% |
– |
||||
|
Adjusted EBIT margin |
8.9% |
6.7% |
– |
8.9% |
5.1% |
– |
||||
|
||||||||||
Revenue
The total revenue of the Industrial Trucks & Services segment amounted to €4,749.8 million, an increase of 15.1 percent compared with the prior-year period (Q1–Q3 2020: €4,125.1 million). Revenue in the new truck business was up by 16.3 percent, despite the ongoing bottlenecks in the procurement of materials. All relevant product categories recorded a year-on-year rise, with the biggest increases generated in the warehouse truck and electric forklift truck categories. The service business expanded by 14.1 percent, thereby growing at a similar rate to the new truck business.
At 52.0 percent, the proportion of the segment’s external revenue attributable to the service business was on a par with the prior-year period (Q1–Q3 2020: 52.5 percent). Currency effects reduced segment revenue by €14.6 million.
Earnings
The adjusted EBIT of the Industrial Trucks & Services segment increased by €213.8 million to €423.1 million, which was roughly twice as high as the figure for the prior-year period (Q1–Q3 2020: €209.3 million). This improvement was due to increased volumes and the very limited rise in fixed costs. However, the adverse impact of bottlenecks in global supply chains again resulted in delays to the production of new trucks in the third quarter. Moreover, profitability is increasingly being squeezed by the sharp rise in commodity prices. The savings achieved in connection with the capacity and structural program had a positive impact. Taken together, these effects resulted in a significantly improved gross margin compared with the prior-year period. Increased personnel expenses, which were partly attributable to variable remuneration components, led to a rise in selling and administrative expenses in particular. Overall, the adjusted EBIT margin improved to 8.9 percent in the first nine months of the year (Q1–Q3 2020: 5.1 percent). After taking into account non-recurring items and purchase price allocation effects, EBIT rose to €418.3 million (Q1–Q3 2020: €187.2 million). Adjusted EBITDA increased to €984.3 million (Q1–Q3 2020: €762.2 million), giving an adjusted EBITDA margin of 20.7 percent (Q1–Q3 2020: 18.5 percent).