DGAP-News: A solid start to 2014 for the KION Group (news with additional features)

DGAP-News: A solid start to 2014 for the KION Group (news with additional 

DGAP-News: KION GROUP AG / Key word(s): Quarter Results
A solid start to 2014 for the KION Group (news with additional

08.05.2014 / 07:19


- Order intake increases in the first quarter of 2014 by more than 4 per
cent to EUR1.196 billion thanks to recovery in western Europe

- Order book improves significantly

- Revenue of EUR1.089 billion remains at same high level as previous year

- EBIT[1] margin at 8.0 per cent

- KION shares gain almost 11 per cent in first three months of 2014

Wiesbaden, 8 May 2014 - The KION Group has had a good start to 2014 thanks
to the economic recovery in western Europe and a robust performance by
growth markets. The total value of order intake grew by 4.4 per cent year
on year to reach EUR1.196 billion in the first quarter. At EUR1.089
billion, consolidated revenue remained at the same high level as in the
first three months of 2013. The world's largest specialist supplier of
industrial trucks and associated services saw its order book climb to
around EUR764 million, an increase of more than 10 per cent compared with
the end of 2013.

The KION Group's operating profit EBIT[1] came to EUR87.4 million (Q1 2013:
EUR92.8 million), while the EBIT[1] margin was 8.0 per cent (Q1 2013: 8.5
per cent).

KION shares also made substantial gains in the first three months of the
year. They closed at EUR34.03 on 31 March 2014, which was up by around 11
per cent on their 2013 year-end closing price of EUR30.73.

"As expected, the KION Group is benefiting from the growing economy in our
core market, western Europe," said Gordon Riske, Chief Executive Officer of
the KION Group. "Our excellent position in growth markets such as China and
our high-margin service business are further pillars of our successful
business model."

There was a marked improvement in the global market for industrial trucks
in the first quarter of 2014. Manufacturers registered around 272,000
orders - an increase of 9.7 per cent compared to the first three months of
2013. This was due to the nascent recovery in western Europe and strong
growth in both North America and Asia. More than a quarter of the trucks
ordered were destined for the Chinese market.

Business performance in detail

Against this backdrop of positive market conditions, the KION Group's order
intake rose by 3.1 per cent to 39,200 units in the first three months of
2014 (Q1 2013: approximately 38,000 units). In China, the world's largest
single market, the company grew faster than the market. There was also a
year-on-year increase in the total value of order intake, which climbed by
4.4 per cent to EUR1.196 billion (Q1 2013: EUR1.145 billion). Adjusted for
negative currency effects, the value of order intake was up by 6.1 per

Consolidated revenue advanced by 0.3 per cent to EUR1.089 billion, mainly
due to growth in western Europe. Adjusted for unfavourable currency
effects, however, revenue went up by 2.0 per cent.

Earnings before interest and tax (EBIT), adjusted for non-recurring items,
declined by 5.8 per cent to EUR87.4 million (Q1 2013: EUR92.8 million).
This was largely attributable to positive exchange differences included in
the figure for the first three months of 2013. These effects also impacted
on the EBIT[1] margin, which stood at 8.0 per cent in the first quarter of
2014 compared with 8.5 per cent in the same period of 2013.

Net income came to EUR27.8 million and was therefore down by 2.7 per cent
on the corresponding prior-year period (Q1 2013: EUR28.6 million), although
the latter had been affected by, among other things, non-recurring items in
connection with the sale of the hydraulics business. Earnings per share
amounted to EUR0.28.

Free cash flow declined in the first quarter from minus EUR5.9 million to
minus EUR22.3 million, primarily as a result of a lower EBITDA and slightly
higher working capital increase compared to prior year.

Total expenditure on research and development rose by 4.7 per cent to
EUR29.4 million in the first quarter. This equates to 2.7 per cent of
revenue, compared with 2.6 per cent in the corresponding quarter of last

The number of employees at 31 March 2014 was 22,267, which was almost the
same number as at the end of 2013.

Annual General Meeting on 19 May 2014 and Dividend

The Executive Board and Supervisory Board will propose a dividend of
EUR0.35 per share to the Annual General Meeting on 19 May 2014. Over the
coming years, the KION Group plans to gradually increase its dividend
payout ratio from 25 per cent to roughly 35 per cent.

In January 2014, major shareholders Goldman Sachs and KKR reduced their
shareholding to 34.5 per cent, while Weichai Power increased its stake to
33.3 per cent by exercising an option. The free float grew to 31.2 per
cent. Free-float market capitalisation stood at EUR1.051 billion on 31
March 2014.


The KION Group confirms the outlook for 2014 provided in the 2013 group
management report.

[1] EBIT adjusted for KION acquisition items and non-recurring items

The company

The KION Group - comprising the six brands of Linde, STILL, Fenwick, OM
STILL, Baoli and Voltas - is the largest manufacturer of industrial trucks
in Western and Eastern Europe, the global number two in the industry and
the leading non-domestic supplier in China. The Linde and STILL brands
serve the premium segment worldwide. Fenwick is the largest supplier of
material handling products in France, while OM STILL is a market leader in
Italy. The Baoli brand focuses on the economy segment, and Voltas is a
market leader in India in industrial trucks. The KION Group is present in
more than 100 countries and, in 2013, employed over 22,000 people and
generated revenue of EUR4.49 billion.


This document 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 materially
from those described in these forward looking statements due to certain
factors, e.g. changes in business, economic and competitive conditions,
regulatory reforms, results of technical studies, foreign exchange rate
fluctuations, uncertainties in litigation or investigative proceedings, and
the availability of financing. We do not undertake any responsibility to
update the forward-looking statements in this release.

Further information for the media

Michael Hauger
Head of Corporate Communications
Tel.: +49 (0)611 770 655

Frank Brandmaier
Head of Corporate Media Relations
Tel.: +49 (0)611 770 752

Further information for investors

Frank Herzog
Head of Corporate Finance
Tel.: +49 (0)611 770 303 

Silke Glitza
Head of Investor Relations and M&A
Tel.: +49 (0)611 770 450

End of Corporate News

Additional features:

Document: http://n.equitystory.com/c/fncls.ssp?u=KEXSGHALIF
Document title: PM KION Q1 EN


08.05.2014 Dissemination of a Corporate News, transmitted by DGAP - a
company of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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Language:    English                                                
Company:     KION GROUP AG                                          
             Abraham-Lincoln-Str. 21                                
             65189 Wiesbaden                                        
Phone:       +49 (0)611 770-0                                       
Fax:         +49 (0)611 770-690                                     
E-mail:      info@kiongroup.com                                     
Internet:    www.kiongroup.com                                      
ISIN:        DE000KGX8881                                           
WKN:         KGX888                                                 
Indices:     SDAX                                                   
Listed:      Regulierter Markt in Frankfurt (Prime Standard);       
             Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover,  
             München, Stuttgart                                     
End of News    DGAP News-Service  
267135 08.05.2014                                                      
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