Kion sees strong results – share price jumps
German logistics company Kion saw its share price jump by 5% last Thursday on the back of strong quarterly and full-year earnings results. The group saw a 26% rise in operating profit, year n year, driven by greater demand for their forklift trucks and automated warehouse equipment. Earnings before interest and taxes (EBIT) were equally impressive, coming in at €549 million – a clear beat on consensus estimates of €543 million.
Investors responded positively to Kion’s earnings report last week
SOURCE: Yahoo Finance
Describing 2017 as “an exciting time to be fulfilling our customers’ needs,” the group’s CEO Gordon Riske discussed how the year had played out in his annual letter to shareholders. He wrote:
“The past year has been another exciting and momentous one for us, and we maintained our path of profitable growth. Our revenue and the value of our order intake increased significantly, due to both organic growth and the acquisition of Dematic. The rise in orders received by the Industrial Trucks & Services segment – our traditional business of forklift trucks, warehouse technology and related services – was particularly impressive. 2017 was the first time that more than 200,000 trucks were ordered within the space of one year – a figure that represented a 13% increase on 2016.”
Kion expects business to continue increasing in 2018, and raised its guidance accordingly. For full year 2018, the company said it now expects orders to come in between €8.05 billion and €8.55 billion, revenue in the range of €7.7 billion to €8.2 billion, and adjusted EBIT between €770 million and €835 million.
Dominion holds Kion Group in its Global Trends Managed Fund.
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