Jungheinrich’s Incoming Orders Post Double-Digit Growth

Jungheinrich expects annual sales of about two billion euros / earnings improved again

Hamburg—The Jungheinrich Group continued its profitable course for growth in the third quarter of 2007. Incoming orders and net sales advanced further year on year, with earnings achieving yet another improvement. The company anticipates closing the year with consolidated net sales of approximately two billion euros for the first time.

Global demand for material handling equipment advanced by eight per cent in the third quarter of 2007. The period from January to September saw a climb of ten per cent to 696 thousand trucks (prior year: 632 thousand units). After nine months, Europe was once again the strongest growth driver, recording a rise of 18 per cent. Eastern Europe achieved an increase of 44 per cent, clearly outpacing Western Europe’s growth momentum (some 14 per cent). The Asian market expanded by nearly 15 per cent in the period under review. Posting an increase of roughly 21 per cent, China was yet again Asia’s growth engine. North America remained on the decline, shrinking by a total of twelve per cent. However, this downward trend weakened again in the third quarter.

In the third quarter, incoming orders advanced eleven per cent to 527 million euros (prior year: 474 million euros). The cumulative value of incoming orders was up twelve per cent to 1,568 million euros (prior year: 1,399 million euros). Orders on hand from Jungheinrich’s new truck business thus continued to rise, totalling 384 million euros as of September 30, 2007—up 23 per cent on the 313 million euros achieved in the corresponding period last year. This represents a 46 per cent gain over the level achieved by the end of 2006. The order range was extended to a good four months.

In the third quarter, the Jungheinrich Group’s net sales jumped about seven per cent to 480 million euros (prior year: 449 million euros). Cumulative net sales after nine months were up 15 per cent to 1,435 million euros (prior year: 1,249 million euros). New truck business made the single-largest contribution, climbing 19 per cent, followed by the short-term hire and used equipment business, which advanced 15 per cent. After-sales services, which constantly benefit from the rising market penetration, posted an increase of seven per cent. By September 30, the foreign ratio had risen to 75 per cent (prior year: 73 per cent).

Earnings before interest and taxes (EBIT) advanced by a disproportionately high twelve per cent to 33.0 million euros in the third quarter (prior year: 29.4 million euros). The corresponding return on sales was 6.9 per cent (prior year: 6.5 per cent). Following the first nine months, operating income had risen to 95.2 million euros (prior year: 79.8 million euros). The comparable return on sales improved to 6.6 per cent (prior year: 6.4 per cent).

Net income generated in the third quarter merely posted a marginal gain due to the higher tax quota, rising to 16.7 million euros (prior year: 16.3 million euros). The company closed the first nine months of the year with 52 million euros in net income (prior year: 49.4 million euros). Corresponding earnings per share amounted to 1.53 euros (prior year: 1.45 euros).

“So far, 2007 has been exceptional for both our sector and Jungheinrich. We expect the market to post further growth in 2008, albeit with less momentum. Therefore, we anticipate that our positive business and earnings trend will continue. We are pretty confident as far as 2008 is concerned,” says Hans-Georg Frey, chairman of the company’s board of management.

Jungheinrich ranks among the world’s leading companies in the material handling equipment, warehousing and material flow engineering sectors. The company has become a logistics service provider with manufacturing operations, which offers its customers a comprehensive range of forklift trucks, shelving systems and services covering the entire field of intralogistics. Jungheinrich shares are traded on all German stock exchanges.