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 23 percent to 175 thousand in the period under review. Figures for the EMEA and Americas regions were down significantly compared with the first nine months of 2022. The impact of customers bringing forward their orders in 2022 in response to longer delivery times and the announcement of price rises was particularly pronounced in the first half of 2023. In the APAC region, unit sales were higher in the reporting period than in the prior-year period.
The value of order intake fell by 15.1 percent to €5,713.9 million in the nine-month period (Q1–Q3 2022: €6,732.1 million). In the new truck business, the decline in the number of units sold was partly offset by price increases. The fall in order intake in new business and the accelerated delivery of trucks meant that, as expected, the order book of €3,365.8 million as at September 30, 2023 was smaller than at the end of the previous year (December 31, 2022: €3,817.6 million) but was still well filled.
In the service business, the value of order intake rose sharply across all categories.
in € million |
Q3 |
Q3 |
Change |
Q1 – Q3 |
Q1 – Q3 |
Change |
||
|---|---|---|---|---|---|---|---|---|
Total revenue |
2,025.1 |
1,838.9 |
10.1% |
6,159.8 |
5,288.3 |
16.5% |
||
EBITDA |
444.4 |
310.0 |
43.4% |
1,245.1 |
888.9 |
40.1% |
||
Adjusted EBITDA |
447.8 |
309.8 |
44.5% |
1,251.2 |
905.1 |
38.2% |
||
EBIT |
230.7 |
102.4 |
> 100% |
606.2 |
270.6 |
> 100% |
||
Adjusted EBIT |
234.7 |
102.6 |
> 100% |
613.6 |
300.4 |
> 100% |
||
|
|
|
|
|
|
|
||
Adjusted EBITDA margin |
22.1% |
16.8% |
– |
20.3% |
17.1% |
– |
||
Adjusted EBIT margin |
11.6% |
5.6% |
– |
10.0% |
5.7% |
– |
||
|
|
|
|
|
|
|
||
Order intake |
1,756.6 |
1,904.9 |
–148.4 |
5,713.9 |
6,732.1 |
–1,018.2 |
||
Order book1 |
|
|
|
3,365.8 |
3,817.6 |
–451.8 |
||
|
||||||||
Revenue
Total revenue in the Industrial Trucks & Services segment increased by 16.5 percent to €6,159.8 million (Q1–Q3 2022: €5,288.3 million). The accelerated processing of the sizeable order book built up in 2022 continued to have a positive impact on revenue in the segment. In addition, price increases implemented in the previous year made a substantial contribution to revenue growth. The service business generated growth in all categories, with its revenue rising by a total of 8.4 percent.
At 48.1 percent, the proportion of the segment’s external revenue attributable to the service business was lower than in the prior-year period (Q1–Q3 2022: 51.7 percent).
Earnings
The adjusted EBIT of the Industrial Trucks & Services segment rose sharply to €613.6 million (Q1–Q3 2022: €300.4 million). This was partly thanks to the impact on earnings of the revenue growth derived from increases in the volume of business and in prices, the efficiency gains achieved in production, and the easing of material prices on the supply side.
The adjusted EBIT margin returned to double digits for the first time to stand at 11.6 percent in the third quarter; for the nine-month period, it stood at 10.0 percent (Q1–Q3 2022: 5.7 percent).
After taking into account non-recurring items and purchase price allocation effects, the segment’s EBIT increased to €606.2 million (Q1–Q3 2022: €270.6 million). In the prior-year period, EBIT had included an expense of €28.6 million for non-recurring items that mainly related to impairment losses on assets of the Russian subsidiaries. Adjusted EBITDA amounted to €1,251.2 million in the first nine months of 2023 (Q1–Q3 2022: €905.1 million), giving an adjusted EBITDA margin of 20.3 percent (Q1–Q3 2022: 17.1 percent).