(Management statements from interview, share price section updated)

HAMBURG (dpa-AFX) - After a strong 2023, forklift truck manufacturer Jungheinrich is optimistic about the current and coming year. Management raised some of its expectations for 2025 on Thursday, exceeding the estimates of analysts surveyed by Bloomberg. The mean values of the company's forecasts for 2024 are also above the experts' average expectations.

CEO Lars Brzoska is relying in particular on a recovery in business in the second half of the year, as he told the financial news agency dpa-AFX in an interview. Further growth could also be achieved through acquisitions, which CFO Volker Hues can well imagine, especially in North America.

The MDax-listed share gave back most of its morning gains around midday and was last trading up 0.3 percent at 33.88 euros. It thus remains within the broad range of 28 and 35 euros in which it has predominantly traded since the beginning of 2023.

Jungheinrich's turnover is expected to rise to between 5.3 and 5.9 billion euros this year, as the company announced in Hamburg. Earnings before interest and taxes (EBIT) are expected to be between 420 million euros and 470 million euros.

"We have reached the bottom, now the question is when we will reach the other end and things will pick up again," said Group CEO Brzoska in an interview with dpa-AFX. After the pandemic, the market for hallway tools had experienced a boom due to faltering supply chains and strong demand from online retailers. With the start of the war in Ukraine, the resulting shortage of materials, the weakening global economy and increased steel prices and personnel costs, Jungheinrich's business and that of competitors such as Kion suffered.

"In the first half of the year, we are not yet seeing markets picking up again, not even in the USA at the moment," Brzoska continued. He hopes for the second half of the year. However, he does not expect a boom like the one after the coronavirus pandemic, but certainly an improvement in the currently weak markets.

By the middle of the decade, Jungheinrich aims to break the 6 billion euro mark in terms of sales. Previously, the Board of Management had 5.5 billion euros on the cards. The targeted operating margin of 8 to 10 per cent was confirmed. The free cash inflow is expected to reach over 300 million euros; the management had previously expected a free cash flow of over 100 million euros.

In 2023, the key performance indicator, which attracted a lot of attention on the capital market in particular, was surprisingly positive. The Executive Board had expected cash outflows in its forecast. This was due to the acquisition of the US company Storage Solutions, which was mainly paid for in cash.

Turnover increased by 16% to 5.55 billion euros in 2023. Operating profit increased by eleven percent to 430 million euros. Earnings were therefore higher than experts had expected. However, the Group fell short of expectations in terms of earnings before interest and taxes. On balance, Jungheinrich earned 299 million euros, eleven percent more than in the previous year.

Shareholders are to receive a higher dividend. The Board of Management is proposing a dividend of 0.75 euros per preference share. According to CFO Hues, this still leaves enough capital to finance possible further acquisitions. "With the current balance sheet, we could easily realize several transactions on the scale of Storage Solutions," he said in an interview.

Jungheinrich acquired the US provider of warehouse automation at the beginning of last year for 375 million US dollars (342 million euros). oWe are working on increasing our global market presence, especially in North Americao, Hues continued. "Following the completed integration of Storage Solutions, we are now looking at further targets in the USA."

A payout of 0.75 euros per share would be the highest dividend paid by the family-owned company, which was founded in 1953 and went public in 1990. A year ago, 0.68 euros per share was paid. However, analysts had expected an even higher increase in the dividend for 2023.

The preference shares only account for just under half of Jungheinrich's capital. The rest are ordinary shares owned by the heirs of the company founder. Taken together, this makes the company worth a good 3.5 billion euros./lew/zb/men/he