Industrial Trucks & Services segment
Business performance and level of orders
Due to the slowdown in market growth, the number of new trucks ordered in the Industrial Trucks & Services segment fell by 30.0 percent compared with the prior-year period to 122 thousand. Figures for the EMEA and Americas regions were down significantly year on year. The high level of demand in the prior-year period had been fueled by the fact that customers placed their orders earlier than they had originally intended. This was a response to longer delivery times in connection with supply chain disruption and to the announcement of price increases. By contrast, unit sales in the APAC region in H1 2023 were up on the prior-year figure following a strong second quarter.
The value of order intake decreased by 18.0 percent year on year to €3,957.3 million (H1 2022: €4,827.2 million). In the new truck business, the negative impact of the decline in units sold was partly offset by the price increases. Despite the market-driven fall in order intake in new business, the order book remained well filled at €3,603.7 million at the end of June 2023 compared with €3,817.6 million at the end of 2022.
In the service business, the value of order intake rose sharply across all categories.
in € million |
Q2 |
Q2 |
Change |
Q1 – Q2 |
Q1 – Q2 |
Change |
||
|---|---|---|---|---|---|---|---|---|
Total revenue |
2,129.9 |
1,731.0 |
23.0% |
4,134.7 |
3,449.4 |
19.9% |
||
EBITDA |
418.5 |
284.7 |
47.0% |
800.7 |
578.9 |
38.3% |
||
Adjusted EBITDA |
419.9 |
285.2 |
47.2% |
803.3 |
595.3 |
35.0% |
||
EBIT |
202.0 |
82.9 |
> 100% |
375.6 |
168.2 |
> 100% |
||
Adjusted EBIT |
202.3 |
83.6 |
> 100% |
378.9 |
197.8 |
91.5% |
||
|
|
|
|
|
|
|
||
Adjusted EBITDA margin |
19.7% |
16.5% |
– |
19.4% |
17.3% |
– |
||
Adjusted EBIT margin |
9.5% |
4.8% |
– |
9.2% |
5.7% |
– |
||
|
|
|
|
|
|
|
||
Order intake |
2,000.8 |
2,745.1 |
–744.3 |
3,957.3 |
4,827.2 |
–869.9 |
||
Order book1 |
|
|
|
3,603.7 |
3,817.6 |
–213.9 |
||
|
||||||||
Revenue
Total revenue in the Industrial Trucks & Services segment increased by a substantial 19.9 percent to €4,134.7 million (H1 2022: €3,449.4 million). The accelerated processing of the sizeable order book built up in 2022 had a positive impact on revenue in the segment. In addition, price increases implemented in the previous year began to filter through into revenue growth earlier than expected. The service business grew by 10.2 percent thanks mainly to the increase in the volume of revenue generated across all categories.
At 48.0 percent, the proportion of the segment’s external revenue attributable to the service business was lower than in the prior-year period (H1 2022: 52.2 percent).
Earnings
The adjusted EBIT of the Industrial Trucks & Services segment rose sharply to €378.9 million (H1 2022: €197.8 million). This rise in earnings derived not only from the revenue growth driven by increases in the volume of business and in prices but also from the efficiency gains achieved in production as a result of the steps taken in 2022 to strengthen operational agility.
The marked improvement in the Industrial Trucks & Services segment’s profitability was reflected in the adjusted EBIT margin, which stood at 9.2 percent compared with 5.7 percent in the first half of 2022.
After taking into account non-recurring items and purchase price allocation effects, EBIT increased to €375.6 million (H1 2022: €168.2 million). In the prior-year period, EBIT had included an expense of €28.7 million for non-recurring items that mainly related to impairment losses on assets of the Russian subsidiaries. Adjusted EBITDA amounted to €803.3 million in the first six months of 2023 (H1 2022: €595.3 million), giving an adjusted EBITDA margin of 19.4 percent (H1 2022: 17.3 percent).