Despite the continued difficult market conditions, Jungheinrich AG recorded overall robust business development in the first half of the 2024 financial year.
Incoming orders for all business areas – new business, rental and used equipment as well as after-sales services – remained stable in the reporting period at EUR 2.665 million compared to the previous year (EUR 2.684 million). The order backlog from new business amounted to EUR 1.520 million at the end of the first half of 2024.
Compared to the order backlog of EUR 1,441 million at the end of 2023, this represents an increase of EUR 79 million or 5.5 percent. Group sales in the first half of the year amounted to EUR 2,622 million, on par with the previous year’s level of EUR 2,658 million. Growth in after-sales service and positive developments in the financial services business almost compensated for the decline in sales in new business.
Sales in Germany developed negatively in the reporting period. Revenues fell by 3.5 percent to EUR 579 million (previous year: EUR 600 million). EBIT was EUR 215 million, EUR 21 million below the previous year’s figure (EUR 236 million). Measures introduced in the previous year to improve earnings partially compensated for the cost increases from collective bargaining effects and the increase in personnel in the previous year. The EBIT return on sales was 8.2 percent (previous year: 8.9 percent).
Free cash flow, i.e. the sum of cash flows from operating activities and investing activities, rose significantly by EUR 354 million to EUR +172 million (previous year: EUR 182 million).
“The first half of the year was characterized by challenging economic conditions. The persistently weak development of the German economy was particularly noticeable in the first six months of the current financial year. However, with an EBIT return on sales of 8.2 percent, Jungheinrich recorded a robust margin – whereby we benefited here from the measures already initiated in the previous year to increase earnings. We will continue to drive forward the implementation of our 2025+ strategy and confirm our forecast for the current financial year,” explains Dr. Lars Brzoska, CEO of Jungheinrich AG.
The main research and development (R&D) activities during the reporting period focused on the design of new industrial trucks, with a particular emphasis on the further development of efficient energy storage systems based on lithium-ion technology.
In addition, the focus was on the development of mobile robots and the optimization of automated systems. Another focus of R&D was digital products. Across the Group, an average of 1,005 employees were involved in development projects during the reporting period (previous year: 980).
As of June 30, 2024, Jungheinrich employed a total of 20,871 full-time employees across the Group, 41 percent of whom were in Germany and 59 percent abroad.
The decline in the reporting period compared to the figure at the end of December 2023 (21,117) is the result of a cautious personnel policy against the backdrop of difficult market conditions. The number of temporary workers, whom Jungheinrich employs almost exclusively in its domestic plants, also fell Group-wide to 357 as of June 30, 2024 (December 31, 2023: 438).
For the 2024 financial year, Jungheinrich continues to expect order intake in a range of EUR 5.2 billion to EUR 5.8 billion (2023: EUR 5.2 billion). Assuming stable supply chains and taking into account the current interest and inflation levels, the company expects consolidated sales of between EUR 5.3 billion and EUR 5.9 billion (2023: EUR 5.5 billion). The prerequisite for this is that the geopolitical situation does not worsen.
