Protecting employee health and safeguarding ability to deliver are the priorities for 2020

At the end of the 2019 financial year, Jungheinrich had generated revenue of more than 4 billion euros. As a result, the company achieved its strategic growth target for 2020 a year earlier than planned. Incoming orders amounted to 3.92 billion euros. EBIT came to 263 million euros. EBIT return on sales amounted to 6.4 per cent. Demand for electric trucks remained high. At over 97 per cent of all trucks sold last year, Jungheinrich recorded the highest ratio of electric truck sales in the sector. Demand on the market for material handling equipment fitted with lithium-ion technology was especially strong. In the 2019 financial year the company sold more than 20,000 lithium-ion batteries through new truck business and retrofitting. Jungheinrich founded JT Energy Systems GmbH with its partner Triathlon Holding GmbH and launched the construction of Europe’s largest development, manufacturing and reconditioning centre for lithium-ion batteries in the industry in Freiberg, Germany.

Jungheinrich believes that the coronavirus pandemic will have major consequences for the global economy in the 2020 financial year. It is not yet clear what the full extent of these consequences will be. In the current situation, protecting our employees and safeguarding our ability to deliver are our top priorities. Jungheinrich has established a crisis team for this purpose, headed by the Board of Management, that makes daily decisions based on the current appraisal of the situation. A number of preventive measures have also been put into place to protect the workforce. Production at all plants is ongoing, and after-sales service technicians are deployed throughout the world. So far, we have been able to prevent the situation having a negative impact on Jungheinrich’s supply chain and production processes, and our ability to deliver is currently stable.

Dr Lars Brzoska, Chairman of the Board of Management of Jungheinrich AG:

“In light of the economic headwinds over the course of the 2019 financial year, I am pleased that we were able to achieve our revenue target of 4 billion euros for 2020 a year earlier than planned with the Jungheinrich team. Despite the challenging conditions and the one-off negative impact on earnings, we were able to achieve respectable earnings of 263 million euros. Incoming orders and production declined as a result of the increasingly challenging economic conditions.

We are all facing a great challenge, both professionally and in our private lives. I would like to extend my personal gratitude to all employees, who dedicate themselves fully to their work and take responsibility every day, particularly in the current situation. We are all taking the situation seriously and the necessary measures were put in place early on. I am certain that Jungheinrich will take this unusual situation in its stride. We will continue to rely on our integrated business model and will consistently invest in important future technologies.

We published our forecast for the 2020 financial year in December. According to this forecast, we expect incoming orders to range between 3.50 billion and 3.80 billion euros and revenue between 3.60 billion and 3.80 billion euros. EBIT should come in between 150 million and 200 million euros, with a corresponding EBIT return on sales figure of between 4.0 and 5.5 per cent. Possible influences from effects that could be traced back to the spreading of the new coronavirus have not been taken into account in the aforementioned forecast values.”

 

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