KION Group significantly improves earnings in Q3 2023: Outlook adjusted

KION Group significantly improves earnings in Q3 2023: Outlook adjusted

• Adjusted EBIT of Group in Q3 2023 significantly better than expected
• ITS segment reports significantly better-than-expected performance in Q3 2023
• KION Group adjusts outlook for fiscal year 2023

Frankfurt am Main, October 13, 2023 – The KION Group will continue to increase its profitability in the third quarter of the current fiscal year, significantly exceeding market expectations, thanks to strong momentum in the Industrial Trucks & Services (ITS) segment. Drivers for the significantly better-than-expected earnings are continued stability of the supply chain enabling higher production volumes, and positive effects from the commercial and operational agility measures initiated last year.

For the third quarter of 2023, based on the preliminary results at Group level, the Executive Board of KION GROUP AG expects adjusted EBIT to amount to approximately €224 million (Q3 2022: € -101.1 million). For the ITS segment, adjusted EBIT for the third quarter of 2023 is expected to be approximately €235 million (Q3 2022: €102.6 million). For the Supply Chain Solutions (SCS) segment, the KION Group expects an adjusted EBIT of approximately €16 million (Q3 2022: € -182.0 million).

The KION Group expects revenue at Group level for the third quarter of 2023 to be approximately €2.730 billion (Q3 2022: €2.706 billion), of which approximately €2.025 billion is expected to be generated by the ITS segment (Q3 2022: €1.839 billion) and approximately €719 million is expected to be generated by the SCS segment (Q3 2022:
€874.4 million). Free cash flow is expected to improve to approximately €101 million (Q3 2022: € -380.4 million).

Based on the preliminary results in the third quarter of 2023, the Executive Board of KION GROUP AG today, on October 13, 2023, adjusted the forecast for the fiscal year 2023 for the Group and the ITS and SCS segments, which was originally published on March 2, 2023 and last adjusted in July 2023, as follows:
 

Due to the continuing positive effects of the measures initiated, the full-year outlook for adjusted EBIT in the ITS segment has been raised again. The order intake in the SCS segment in the current fiscal year includes mainly long-term projects which will not yet convert into revenue in the current year. Therefore, the full year outlook for the SCS segment was revised downwards slightly.

For the third quarter of 2023, the Group expects order intake of approximately €2.621 billion (Q3 2022: €2.517 billion), of which approximately €1.757 billion is expected for the ITS segment (Q3 2022: €1.905 billion) and approximately
€872 million for the SCS segment (Q3 2022: €614.4 million).

KION GROUP AG will announce the final results for the third quarter of 2023 on October 26, 2023.
 

The Company

The KION Group is among the world’s leading suppliers of industrial trucks and supply chain solutions. Its portfolio encompasses industrial trucks such as forklift trucks and warehouse trucks, as well as integrated automation technology and software solutions for the optimization of supply chains, including all related services. Across more than 100 countries worldwide, the KION Group’s solutions improve the flow of material and information within factories, warehouses, and distribution centers.

The MDAX-listed Group is the largest manufacturer of industrial trucks in the EMEA region in terms of units sold in 2021. In China, it is the leading foreign manufacturer (as measured by revenue in 2021) and number three overall. The KION Group is also one of the world’s leading providers of warehouse automation (as measured by revenue in 2021).

With an installed base of more than 1.7 million industrial trucks at the end of 2022, the KION Group’s customers include companies of various sizes in numerous industries on six continents. The Group currently has more than 41,000 employees and generated revenue of around €11.1 billion in 2022.

Current KION Group images can be found in our image database at https://mediacenter.kiongroup.com/categories and on the websites of our various brand companies.

(fgr/be)
 

Disclaimer 

This release and the information contained herein are for information purposes only and do not constitute a prospectus or an offer to sell or a solicitation of an offer to buy any securities in the United States or in any other jurisdiction.

This release contains forward-looking statements that are subject to various risks and uncertainties. Future results could differ significantly from the results that are currently expected due to various risk factors and uncertainties such as changes in economic or industry-specific conditions, changes in the market environment or political situation, changes in domestic or international legislation, interest rate or exchange rate fluctuations, legal disputes and investigations, and the availability of financial resources. We do not assume any responsibility for updating the forward-looking statements in this release.

Further information for the media
 

Frank Grodzki
Vice President External Communications & Group Newsroom
Tel: +49 (0)69 201 107 496
Mobile: +49 (0)151 6526 2916
frank.grodzki@kiongroup.com

Christopher Spies
Senior Manager Corporate Communications

Tel: +49 (0)69 201 107 725
Mobile: +49 (0)151 1406 5227
christopher.spies@kiongroup.com

Further information for investors

Sebastian Ubert
Vice President Investor Relations
Tel: +49 (0)69 201 107 329
sebastian.ubert@kiongroup.com

Raj Junginger
Senior Manager Investor Relations
Tel: +49 (0)69 201 107 942
raj.junginger@kiongroup.com