At 38 million euros (prior year: 36 million euros), expenditures by the Jungheinrich Group on research and development in the fiscal year that just ended remained high. Lithium-ion batteries, which have been explored as a potential energy storage of the future, were used in a mass-manufactured product—a low platform truck—for the first time in the year being reviewed. Capital expenditures on tangible and intangible assets rose in 2011 by 19 million euros to 52 million euros (prior year: 33 million euros). Hans-Georg Frey: “This increase reflects our company's investing activity, which is oriented towards growth and shaping the future." This includes the two large-scale capital expenditures initiated in 2011: the construction of a new spare parts centre in Kaltenkirchen (budget: some 35 million euros) and the erection of the factory in Qingpu (Shanghai), China (about 15 million euros), which will ensure an even better supply of products designed to meet the needs of the Asian market—a major sales region. The construction of a new warehousing and system equipment plant in the vicinity of the current production site in Moosburg (Bavaria) with a budget of approximately 40 million euros resolved in early 2012 is fully in line with this year’s motto: ‘Investing in the Future.’ All three of the investment objects are scheduled to be commissioned in 2013.

Current business situation and outlook for 2012

Jungheinrich got off to a good start to the new year: The value of incoming orders across all business areas rose by 14 per cent in the first two months of 2012 to 380 million euros compared to the year-earlier period (prior year: 333 million euros). Orders on hand in new truck business were up 13 per cent to 371 million euros during the same period of time. By the end of February 2012, net sales amounted to an accumulated 328 million euros, which was 18 per cent more than the 279 million euros recorded by the same time in the previous year.

Despite the considerable deterioration of the economic environment—especially in Europe—the prospects for the material handling equipment industry should be generally stable, moving laterally and harbouring slight opportunities for growth, albeit with regional differences, which may be significant in some cases. Therefore, the market should lose considerable momentum following the strong growth achieved last year. Now, Jungheinrich thus only expects the world material handling equipment market to expand by less than 5 per cent in terms of units to some 1 million units. Market growth is likely to take place above all in Asia, Latin America and the USA.

“Based on the market’s anticipated growth and in line with the development of business in the first few weeks of the current year, we expect incoming orders to at least range between 2.0 and 2.1 billion euros, with consolidated net sales displaying corresponding movement. The sales trend should benefit from the high level of orders on hand at the beginning of the year and from potential opportunities for growth above and beyond that. It still cannot be ruled out that the market may shrink significantly contrary to this assessment, primarily owing to the sovereign debt crisis in Europe. In such an event, given that our company is positioned as a full-line supplier and intralogistics service provider with a large proportion of business accounted for by services, it is well equipped for proving itself successfully even against the backdrop of a negative market scenario, as its structures in administration, sales and production are more effective and flexible today," says Hans-Georg Frey.

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