Industrial Trucks & Services segment
Business performance and order intake
In the first nine months of 2022, the number of new trucks ordered in the Industrial Trucks & Services segment rose by 3.9 percent to 227.2 thousand. This increase was attributable to the high volume of orders placed in the first quarter, whereas the number of units ordered declined in the second and third quarters. The segment recorded moderate growth in the EMEA and APAC regions. The growth rate in the Americas region was far higher than in the prior-year period.
In the first three quarters of 2022, the value of order intake amounted to €6,732.1 million, an increase of 17.5 percent year on year (Q1-Q3 2021: €5,731.1 million). The 12.1 percent rise in new business was mainly driven by in-year price adjustments in response to higher cost for materials. In the service business, the value of order intake rose sharply across almost all categories. Only for used trucks was the value of order intake close to the prior-year period, and this was due to limited availability.
Currency effects boosted order intake by a total of €89.2 million.
in € million |
Q3 |
Q3 |
Change |
Q1 – Q3 |
Q1 – Q3 |
Change |
||
|---|---|---|---|---|---|---|---|---|
Order intake |
1,904.9 |
1,710.0 |
11.4% |
6,732.1 |
5,731.1 |
17.5% |
||
Total revenue |
1,838.9 |
1,630.1 |
12.8% |
5,288.3 |
4,749.8 |
11.3% |
||
Order book1 |
|
|
|
4,257.8 |
2,877.8 |
48.0% |
||
EBITDA |
310.0 |
336.7 |
–7.9% |
888.9 |
981.3 |
–9.4% |
||
Adjusted EBITDA |
309.8 |
333.5 |
–7.1% |
905.1 |
984.3 |
–8.0% |
||
EBIT |
102.4 |
147.3 |
–30.5% |
270.6 |
418.3 |
–35.3% |
||
Adjusted EBIT |
102.6 |
144.5 |
–29.0% |
300.4 |
423.1 |
–29.0% |
||
|
|
|
|
|
|
|
||
Adjusted EBITDA margin |
16.8% |
20.5% |
– |
17.1% |
20.7% |
– |
||
Adjusted EBIT margin |
5.6% |
8.9% |
– |
5.7% |
8.9% |
– |
||
|
||||||||
Revenue
Total revenue in the Industrial Trucks & Services segment increased by 11.3 percent to €5,288.3 million (Q1–Q3 2021: €4,749.8 million). This was mainly due to working through the sizeable order book for new business amassed up to the end of 2021. Moreover, the segment was able to issue invoices for a high number of finished industrial trucks just before the end of the third quarter. However, customer orders secured in 2022 at the higher sales prices did not yet have a significant impact on segment revenue in the reporting period. The ongoing shortages of bought-in parts and components continued to delay the delivery of trucks to customers, especially in the EMEA region. The service business grew by 10.7 percent, driven mainly by the aftersales and rental businesses.
At 51.7 percent, the share of the segment’s external revenue generated by the service business was virtually unchanged on the prior-year period (Q1–Q3 2021: 52.0 percent). Currency effects increased segment revenue by €75.0 million.
Earnings
The adjusted EBIT of the Industrial Trucks & Services segment fell to €300.4 million (Q1–Q3 2021: €423.1 million). The boost to earnings from revenue growth and lower variable remuneration components was offset by the substantial negative effect of much higher costs for materials, energy, and logistics as well as production inefficiencies. Although this increase in costs was contained thanks to the operational countermeasures put in place, the ITS segment’s gross margin dropped significantly.
The adjusted EBIT margin declined to 5.7 percent in the first nine months of 2022 (Q1–Q3 2021: 8.9 percent).
After taking into account non-recurring items and purchase price allocation effects, EBIT also fell sharply and came to €270.6 million (Q1–Q3 2021: €418.3 million). The non-recurring items in the Industrial Trucks & Services segment amounted to an expense of €29.9 million and predominantly consisted of the impairment losses recognized on business in Russia in the first quarter. Adjusted EBITDA was €905.1 million (Q1–Q3 2021: €984.3 million), giving an adjusted EBITDA margin of 17.1 percent (Q1–Q3 2021: 20.7 percent).