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    KGX   DE000KGX8881

KION GROUP AG

(KGX)
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PRESS RELEASE : KION Group raises its outlook for 2021 due to emerging revenue growth

07/26/2021 | 02:10pm EDT
DGAP-News: KION GROUP AG / Key word(s): Change in Forecast 
KION Group raises its outlook for 2021 due to emerging revenue growth (news with additional features) 
2021-07-26 / 20:09 
The issuer is solely responsible for the content of this announcement. 
=---------------------------------------------------------------------------------------------------------------------- 
KION Group raises its outlook for 2021 due to emerging revenue growth 
- Outlook for the financial year 2021 raised for almost all target figures - Group's free cash flow and order intake in 
the Supply Chain Solutions segment confirmed 
- Order intake provisionally increases in the first half of 2021 by 33.7 percent to EUR5.88 billion compared with the 
prior-year period 
- At a provisional EUR5.41 billion, the order book as of June 30, 2021, grows by 21.8 percent compared with the end of 
2020 
- Revenue expected to rise by 26.5 percent to EUR4.97 billion 
- Provisional adjusted EBIT more than doubles to EUR462 million (H1 2020: EUR204.8 million) 
- Adjusted EBIT margin expected to recover by more than 4 percentage points to 9.3 percent 
- Net income for the period expected to be EUR291 million (H1 2020: EUR50.6 million) 
- Provisional free cash flow of EUR301 million (H1 2020: minus EUR219.6 million) strengthens the Group's financial position 
 
Frankfurt am Main, July 26, 2021 - The KION Group is on an impressive path of recovery and, according to provisional 
figures, recorded significant year-on-year improvements in all key performance indicators in the first half of 2021. 
For the first six months of the current year, the Group provisionally recorded sharp growth in order intake and revenue 
along with even stronger improvement in its earnings, with both operating segments - Industrial Trucks & Services (ITS) 
and Supply Chain Solutions (SCS) - contributing to this growth. Combined with a positive outlook for the financial year 
2021 in line with the current forecasts for the global economy and, in particular, the fact that the KION Group's 
upturn in revenue looks set to continue for the remainder of the year, KION has also raised its target figures for 2021 
as a whole. 
Provisional performance of the Group as a whole in H1 2021 
"The first six months of the year have been very successful for us. And we intend to continue benefiting from the 
recovery of the global market - despite the uncertainties caused by rising commodity costs and potential supply issues 
in procurement," says Gordon Riske, Chief Executive Officer of KION GROUP AG. "We have laid solid foundations for this 
in terms of our technology, production capabilities, and financial strength." 
The KION Group's order intake provisionally increased by 33.7 percent to EUR5.88 billion in the first half of 2021 (H1 
2020: EUR4.400 billion). This exceptionally strong increase is primarily a reflection of pent-up demand in the Industrial 
Trucks & Services (ITS) segment. In particular, the pandemic-related restrictions in place in 2020 resulted in a 
significant boost to demand in the current reporting period. The effect of customers bringing forward their purchases 
in anticipation of global supply bottlenecks and significantly longer lead times had a positive impact as well. There 
was also a year-on-year rise in the service business, which was up by more than 15 percent. Against a backdrop of 
continued rapid growth in the market as a whole, the Industrial Trucks & Services (ITS) segment recorded its highest 
ever level of order intake in a half-year period. The increase in the Supply Chain Solutions (SCS) segment was 
attributable not just to the service business but also, in particular, to the project business. In the prior-year 
period, order intake in the segment had been far less affected by the coronavirus pandemic than order intake in the 
Industrial Trucks & Services (ITS) segment. Currency effects reduced the value of the KION Group's order intake by a 
total of around EUR115 million. According to provisional figures, the Group's order book increased to EUR5.41 billion 
compared with the end of 2020 (December 31, 2020: EUR4.441 billion). The Industrial Trucks & Services (ITS) segment made 
the biggest contribution to this growth, but the order book in the Supply Chain Solutions (SCS) segment also increased 
again. 
Consolidated revenue provisionally increased too, by 26.5 percent to EUR4.97 billion (H1 2020: EUR3.927 billion). The 
year-on-year revenue growth in the Supply Chain Solutions (SCS) segment was particularly pronounced at around 53 
percent. In addition to the high overall volume of orders, this was because the segment worked through big-ticket 
orders for warehouse automation that had been placed in North America and Europe in 2020. The Industrial Trucks & 
Services (ITS) segment also saw a jump in its revenue, by nearly 15 percent. This was partly due to the 
pandemic-related restrictions on production in the prior-year period and to the resulting pent-up demand, particularly 
at the beginning of 2021. Currency effects reduced the provisional figure for consolidated revenue by approximately 
EUR128 million overall. 
Adjusted EBIT for the first six months of 2021 provisionally amounted to EUR462 million, which was more than double the 
figure of EUR204.8 million for the first half of 2020. The provisional adjusted EBIT margin recovered significantly to 
9.3 percent (H1 2020: 5.2 percent). This improvement in profitability was attributable to the higher gross margin 
combined with a relatively low increase in selling expenses, development costs, and administrative expenses. The 
provisional figure for net income increased sharply to EUR291 million (H1 2020: EUR50.6 million). Basic earnings per share 
provisionally rose to EUR2.21 (H1 2020: EUR0.46). Provisional free cash flow amounted to around EUR301 million (H1 2020: 
minus EUR219.6 million), which strengthened the Group's financial position. This increase in free cash flow was due 
mainly to the rise in operating profit but also - despite the growth in the volume of business - to the relatively low 
growth in net working capital as at the reporting date. 
Provisional figures show that the number of employees (stated in full-time equivalents) rose by 4.2 percent, from 
36,207 as at December 31, 2020 to 37,718 as at June 30, 2021. 
"We are well on course for success once again - our revenue is up sharply and profitability has also recovered 
markedly. Following last year's pandemic-related decline, we are now edging close again to our medium-term target range 
for the adjusted EBIT margin of 10 to 12 percent," says Anke Groth, Chief Financial Officer of KION GROUP AG. 
Market continues to bounce back 
According to the latest report by the World Bank, the global economy performed much better in the first half of 2021 
than in the same period of 2020. The pace of recovery varied between regions and between sectors depending on the 
particular course of the pandemic and the extent of economic and fiscal stimulus measures. In the eurozone, the 
sluggish and patchy rollout of vaccines and the restrictions on travel that were still in effect in some places slowed 
the pace of recovery. The US economy recovered more quickly than other developed economies because of larger government 
stimulus packages. Economic growth continued to pick up again in China too, driven by public investment, exports, and 
rising domestic demand. 
Provisional segment performance in detail 
In the first half of 2021, according to provisional figures, the Industrial Trucks & Services (ITS) segment generated 
strong growth across all product categories in the new truck business. The number of new trucks ordered provisionally 
advanced by nearly 75 percent year on year to more than 155 thousand units. This year-on-year increase relative to the 
first half of 2020 is primarily attributable to higher demand in the main sales market, the EMEA region. Counterbalance 
trucks contributed to this growth, particularly the electric variants. 
In the APAC region, the KION Group's growth outstripped that of the market, mainly due to higher unit sales of 
counterbalance trucks (diesel and electric forklift trucks) and warehouse equipment in China. In the Americas region, 
the Industrial Trucks & Services (ITS) segment registered almost double the number of orders, meaning that its growth 
also outstripped that of the market. 
The total value of order intake in the Industrial Trucks & Services (ITS) segment is provisionally up by 51 percent to 
EUR4.02 billion (H1 2020: EUR2.663 billion). Currency effects reduced order intake by roughly EUR41 million overall. The 
segment's provisional total revenue rose sharply, by nearly 15 percent, to EUR3.12 billion in the reporting period (H1 
2020: EUR2.715 billion). Revenue in the new truck business was up by 14.0 percent, despite the current difficulties with 
the procurement of materials. All relevant product categories contributed to this growth. The biggest increases were 
generated from warehouse equipment and electric forklift trucks. There was also a year-on-year rise in the service 
business, which was up by more than 15 percent. The proportion of the segment's external revenue attributable to the 
service business was slightly higher than in the prior year (H1 2020: 52.0 percent). Currency effects reduced segment 
revenue by almost EUR28 million. Rising by nearly EUR164 million, the provisional figure for adjusted EBIT for the first 
half of 2021 in the Industrial Trucks & Services (ITS) segment more than doubled compared with the very low figure for 
the prior-year period to reach over EUR278 million (H1 2020: EUR114.8 million). This improvement was due to the substantial 
increase in revenue and the relatively slower rise in fixed costs. The current upward trajectory of commodity prices 
and global delivery bottlenecks had not yet had a material influence on the segment's productivity and profitability in 
the first half of 2021, even though there had already been some delays to the completion of new trucks. The segment's 

(MORE TO FOLLOW) Dow Jones Newswires

July 26, 2021 14:09 ET (18:09 GMT)

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Analyst Recommendations on KION GROUP AG
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Financials
Sales 2021 9 996 M 11 715 M 11 715 M
Net income 2021 502 M 588 M 588 M
Net Debt 2021 916 M 1 074 M 1 074 M
P/E ratio 2021 21,1x
Yield 2021 1,37%
Capitalization 10 552 M 12 365 M 12 367 M
EV / Sales 2021 1,15x
EV / Sales 2022 1,04x
Nbr of Employees 37 718
Free-Float 54,7%
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Mean consensus OUTPERFORM
Number of Analysts 16
Last Close Price 80,50 €
Average target price 98,44 €
Spread / Average Target 22,3%
EPS Revisions
Managers and Directors
Gordon Riske Chief Executive Officer
Anke Groth Chief Financial Officer & Labour Director
Michael Macht Chairman-Supervisory Board
Henry Puhl Chief Technology Officer
Hans-Peter Ring Member-Supervisory Board
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