(NEW: Further details and analytical votes)
Frankfurt (dpa-AfX)-The forklift manufacturer Kion (Kion Group) is increasing to the cost brake. The board of directors had decided on an efficiency program, the company surprisingly said in Frankfurt on Tuesday. Organizational structures are to be adapted, work processes are to be more efficient and the personnel is expected to be broken down in order to maintain competitive and investment ability. However, this initially costs money, which is why the board expected the results in the current year among the estimates of analysts. According to preliminary figures, the group surpassed the market expectations in 2024.
The paper listed in the MDAX recently increased over 12 percent and has noticed the highest level since the end of July. This was also awarded the share of the competitor Jungheinrich, which was also listed in the mean value segment.
The price losses of the Kion share of the past twelve months have been reduced to around 9 percent thanks to the course jump. However, the longer -term trend is likely to be particularly displeasing: in the past three years, the paper has still more than halved.
Kion and his fellow campaigners burden the weak economy – especially in Europe. Customers are reluctant to build new logistics centers and camps. In addition, Chinese competitors push into the European market with their significantly cheaper vehicles and expand their position. Europe summarizes Kion with Africa and the Middle East to the EMEA region, in which the Frankfurters make around 80 percent of their forklift business.
Jefferies analyst Lucas Ferhani negatively evaluated the reference to the competition from China. He praised the numbers. Both business areas would have cut off a lot. In addition to the traditional production of staners and warehouse technology, Kion also offers automation technology and software, for example sorting systems and those for filling pallets.
Last year, Kion’s order intake fell by almost five percent to 10.3 billion euros. However, analysts had even less on the slip of paper here and with other indicators. In the reporting period, sales rose slightly to 11.5 billion euros compared to 2023. Of this, there were adjusted to special effects as well as interest and taxes (adjusted EBIT) with 917 million euros around 16 percent more dependent than in the previous year. Kion plans to present the final figures and the forecast for the current year on February 27th.
The Frankfurters want to implement the desired cost measures according to business development, especially in Europe. On request, a company spokesman did not want to provide any information about the size of HR reduction. The necessary discussions with the employee side should now begin. The group currently employs more than 42,000 people.
According to his own statement, JPMorgan analyst Akash Guppa had not expected an efficiency program. However, if the measures are successfully implemented, in his opinion they should give an important impulse so that Kion achieves its medium -term goal of creating an operational margin of more than 10 percent by the end of 2027. Guppa continued to create space for new investments.
The reductions resulting from the measures put Kion at 140 to 160 million euros annually, fully from 2026. First of all, one -off expenses of 240 to 260 million euros will be due in the current year. As a result, Kion expects that the free cash inflow and the result in the shareholders will remain behind the market expectations in 2025. Analysts had previously expected an average of 413 million euros in profit and a cash flow of 666 million euros.
In 2024, according to the preliminary figures, this cash flow was 702 million euros, which was slightly below the level of 2023. Jefferies analyst Ferhani nevertheless called the value “outstanding”. After the pandemic, Kion put a lot of work in relation to the operating capital, he recognized. At the time, the high energy costs and the lack of individual parts ensured that thousands of forklifts did not come from the farm among the Frankfurters./lew/tav/he
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