Yungkhaynry Jungheinrich

Jungheinrich - the company works in the field of industrial, warehouse and handling technologies.

Since 1953 the company with the central office in Hamburg offers products and services intended for development of intralogistics of the industrial companies.

Product assortment of Jungheinrich includes different types of the warehouse equipment, the rack systems, service, services in optimization of a warehouse. At the end of 2017 on the sales volume of the warehouse Jungheinrich equipment is one of leaders both in Europe, and in Russia.

Performance Indicators

2017: Growth of sales volume to 3.4 billion euros

The Jungheinrich concern completed 2017 financial year with a considerable gain on all key indicators. In many respects this positive trend is caused by the stable growth of business in a segment of logistics systems and also high sales volumes of the new equipment in the European market.

In 2017 the volume of net proceeds of the company in terms of money was 3435 million euros and increased by 11% thanks to demand growth in the European market: in Germany, Russia, France and Italy

• Net profit increased by 18% and reached 182 million euros
• Jungheinrich share in the European market reached 21.5%
• Growth of volume of incoming orders: +11% in terms of money and +13% in units of production
• Growth of sales volume in the market of Eastern Europe, including Russia: +20%
• The forecast of net proceeds for 2018: 3.6 - 3.7 billion euros

Hans-Georg Frey, chairman of the board of directors of Jungheinrich AG:

"The Jungheinrich concern once again confirmed the forecasts. Our international command as a part of 16,000 people effectively coped with assigned tasks. We successfully passed the next important milestone on the way to our strategic objective – to reach a point of 4 billion euros on indicators of annual sales volume by 2020.

Our strategic approach and in particular rate on such megatrends as development of electric vehicles, automation and digitalization, give notable advantages in the market. So, thanks to experience of Jungheinrich in the development area of accumulators, in 2017 we managed to win the largest delivery contract of the lifting and loading equipment in the history of the company – more than 1000 pieces of equipment equipped with Li-ion joint stock banks. More and more customers trust us automation of the warehouses for the solution of pressing intra logistic problems. As a result, today we can speak with confidence that Jungheinrich is a key supplier of the innovative solutions for intralogistics in the world.

Since 2013 we doubled the volume of net proceeds, consider only the account of internal resources. Today divisions of Jungheinrich are provided in 39 countries. And we will continue to expand the geography.

Based on positive trends of market development in 2018, we expect that incoming orders will bring from 3.75 billion to 3.85 billion euros, and the volume of net proceeds will be from 3.6 billion to 3.7 billion euros. The profit before taxes and percent, by our estimates, will be from 270 to 280 million euros".

Incoming orders and earlier received orders

The volume of incoming orders on the new lifting and loading equipment in kind, including purchase and lease, was 123 thousand pieces of equipment that is 13% more, than in previous year (109 thousand units). The volume of incoming orders in terms of money which was 3,560 million euros, including sale of the new and second-hand equipment, lease and providing an after-sale service exceeded an indicator of previous year (3,220 million euros) for 11%, or for 340 million euros. About a quarter of this amount was received thanks to increase in demand for solutions for logistics systems.

Production

Production volume with some delay reflects changes in the volume of incoming orders. In reporting year production volume was 120 thousand pieces of equipment and exceeded an indicator of previous year (106 thousand units) for 13%.

Net sales revenue

The consolidated net sales revenue reached 3,435 million euros that for 11%, or for 350 million euros, it is more in comparison with previous year (3,085 million euros). 88% fell to the share of Europe from them (in previous year – 87%). This growth was result of increase in demand in Germany, France, Russia and Italy.

Profit

Profit and percent (EBIT) increased before tax by 24 million euros, or for 10%, having been 259 million euros (in previous year – 235 million euros).

Net profit increased by 28 million euros, or for 18%, having reached the level of 182 million euros (in previous year – 154 million euros).

Research works

Expenses on research and development (Research and Development), including expenses on payment of services of the external organizations, increased in comparison with previous year by 77 million euros (last year this amount was 62 million euros). It corresponds to 5.3% (in previous year – 4.9%) from the net volume of sales of the new types of the lifting and loading equipment concerning Research and Development.

Employees

In reporting year the Jungheinrich concern increased the personnel potential again, having paid the main attention to sales in the European market. As of December 31, 2017, the number of employees of Group was 16,248 people (last year – 15,010 people). It corresponds to increase by 8%, or on 1,238 employees.

Assessment of the market and the forecast for 2018

In the light of positive economic indicators on a global scale we expect that growth of the world market of the lifting and loading equipment in 2018 will be in range between average and high rates and will make no more than 10%. The company considers that in some markets achievement of higher level of growth is possible.

In view of the economic and industry forecast which is stated above Jungheinrich expects that the cost of incoming orders in 2018 will be from 3.75 billion to 3.85 billion euros. Concern also we aim at some increase in a market share in Europe (in 2017 it made 21.5%). It is expected that the consolidated net sales revenue will make from 3.6 billion to 3.7 billion euros (in 2017 this amount reached 3.44 billion euros).

Business in Russia

In Russia it is organized in 1993.

For March, 2018 Yungkhaynrikh podjemno-pogruzochnaya tekhnika LLC has seven branches – in Moscow, St. Petersburg, Yekaterinburg, Novosibirsk, Krasnodar, Nizhny Novgorod and Voronezh and also more than 70 service centers in all Russia.

2018

Opening of branch in Samara

The German concern Jungheinrich (Yungkhaynrikh) announced on May 29, 2018 expansion of network of representations in the territory of the Russian Federation. After recent opening of offices in Nizhny Novgorod and Voronezh, operating activities were started by branch in Samara — the eighth Russian division of Jungheinrich.

The branch will be responsible for business development of Jungheinrich in the territory of the Samara region. It is expected that the coverage of representation will also include the Republic of Tatarstan and the Ulyanovsk region.

The total area of the Samara branch Jungheinrich is about 670 square meters on which office spaces, the showroom, a finished goods warehouse and spare parts and also a zone of service maintenance and recovery / u-tekhniki are placed. The warehouse is completed with the complete nomenclature of the lifting and loading and warehouse equipment of Jungheinrich for operational accomplishment of regional orders and providing the equipment in lease.

Repair and maintenance of the equipment in the Samara region are provided by own mobile team of highly qualified specialists of Jungheinrich.

In the Samara region the companies in the field of mechanical engineering, metal working, electrical power, chemical and other industries and also retailers, logistic operators and distributors are among primary clients of Jungheinrich.

Hans-Herbert Schultz is appointed the CEO of Jungheinrich in Russia

On April 12, 2018 the Jungheinrich concern announced staff changes in the Russian representative office.

In Russia Hans-Herbert Schultz who also reserved a position of the vice president of Jungheinrich for Northeast Europe is appointed the CEO of Jungheinrich.

Hans-Herbert Schultz released Luke Snayders heading the Russian office since 2014 which, in turn, since the beginning of 2018 is appointed by the CEO of Jungheinrich in Great Britain from this duty.

Alexey Makaryev who will be responsible for operating activities and sale of concern in Russia is appointed the deputy CEO of Yungkhaynrikh podjemno-pogruzochnaya tekhnika LLC.

Opening of branch in Voronezh

The German concern Jungheinrich (Yungkhaynrikh) announced on March 1, 2018 opening of the seventh representation in the territory of the Russian Federation — in the city of Voronezh. The purpose of start of branch — to strengthen positions of concern in the Central Black Earth economic region of Russia.

As of March 1, the representation located at the address by st. of Tekstilshchiki, 2B started operating activities. On the total area of 450 square meters office spaces, the showroom, a finished goods warehouse and spare parts and also a zone of service maintenance and second-hand recovery of the equipment are placed.

The warehouse "Yungkhaynrikh" in Voronezh

The warehouse is completed with the complete nomenclature of the lifting and loading and warehouse equipment of Jungheinrich for operational accomplishment of regional orders and providing the equipment in lease. Repair and TO of the equipment in the Black Earth are provided by own mobile team of highly qualified specialists of Jungheinrich as a part of 9 people.

History

2017: Plans for opening of divisions in Colombia, Peru and Ecuador

At the end of December, 2017 the Jungheinrich company announced intention to create in 2018 divisions in Colombia, Peru and Ecuador. Besides, since January 1 the concern will take under management of Grupo Agencia Alemana — the company which for many years performed sales of solutions of Jungheinrich in the markets of South America. As the result, Jungheinrich will be able to sell the products in Colombia, Peru and Ecuador directly — without participation of distribution companies. As a result the network of direct sales of concern will cover 39 countries.

Now the Jungheinrich group will be presented at international market by the home companies enabling direct implementation of the lifting and loading and warehouse equipment of Jungheinrich in 39 countries of the world. It confirms allows to implement growth strategy consistently. After several years of successful cooperation with Grupo Agencia Alemana which performed sales of our products in the Southern American region we are ready to turn on Colombia, Peru and Ecuador in Jungheinrich network. As a result we will have more opportunities for optimal use of potential of local market, - Dr. Dr. Lars Brzoska, the board member of Jungheinrich responsible for marketing and sales commented on an event.

According to the company, Colombia, Peru and Ecuador are among most quickly developing countries of South America. Positive change of a situation in economy of these countries laid the foundation for business development of Jungheinrich in the region. After creation of Jungheinrich branches in Brazil (in 2001) and in Chile (in 2016), the concern actively strengthens the positions in South America.

2016

Sales growth to 3.08 billion euros

As the main drivers of growth sales of the new equipment and division Logistics systems acted. New records are set on such indicators as the entering orders, net proceeds, production volume and also all profitability indicators.

• The world market of the pogruzo-unloading and warehouse equipment in 2016 showed height of +7%, the Russian market: +37%
• Jungheinrich production volume for the first time exceeded 100,000 pieces of equipment. 106 thousand pieces of equipment are made that is 16% more in comparison with last year (91 thousand units). Thus, production for the first time exceeded 100 thousand units.
• The volume of the entering orders: 3.22 billion euros, +14% by last year (2.82 billion euros)
• Revenue: 3.085 billion euros, +12% by last year (2.75 billion euros)
• Net profit: 154 million euros, +12% by last year (138 million euros)
• EBIT: 235 million euros, +10% by last year (213 million euros)
• The plan for revenue for 2017: 3.3 - 3.4 billion euros

In 2016 Jungheinrich continued research and development designed to increase the technology level of the company and to propose to the market the innovative solutions. Investments into Research and Development together with payment for work, executed by the third parties, reached the record amount of 62 million euros (in previous year – 55 million euros).

According to the salary sheet for December 31, 2016 the number of employees reached record 15010 (in 2015 – 13962 employees) from which 8499 worked outside Germany (last year – 7884 employees) and 6511 – in Germany (last year – 6078 employees). 186 new employees were hired in connection with acquisition or organization of the new companies.

Obtaining status of SAP integrator

On December 7, 2016 the Jungheinrich company announced obtaining the status Extended Warehouse Management in the field of warehouse management systems and obtaining the appropriate certificate of SAP company.

Jungheinrich included in a product portfolio the SAP solution EWM which is a part of a system of integrated management of supply chains of SAP SCM and contains a full range of necessary functions for effective management of a modern warehouse.

Advertizing Jungheinrich, (2016)

Having expanded with it potential in the field of IT, Jungheinrich offers optimal warehouse technologies and IT solutions for any type of a warehouse – regardless of the size and the level of automation. Long-term experience and unique knowledge in the field of design, implementation and service of logistics systems make concern the universal supplier proposing complete solutions and unique programs of support.

Having added a product line in the field of management of a warehouse of the SAP solution EWM, Jungheinrich now it is capable to offer the clients even more flexible and adaptive technology that is especially important for clients whose IT platform is implemented only based on SAP. Dr Markus Heinecker, managing director of Jungheinrich Systemlösungen GmbH company

It is supposed, certification of SAP will help to strengthen Jungheinrich positions in the field of implementation of system logistic solutions.

2015

Sales growth to 2.75 billion euros

2015 for Jungheinrich became successful: results exceeded ambitious forecasts:

• The volume of incoming orders grew by 11%, to 2.82 billion euros
• The market share grew worldwide and in the key market of Western Europe
• Production volume for the first time exceeded 90,000 units of production
• Net sales grew by 10%, to 2.75 billion euros
• Profit before interest payment and taxes PDPN (EBIT) rose by 10%, to 213 million Euros
• The offered preferred share dividends grew by 14%

The chairman of the board of Jungheinrich AG Hans-Georg Frey notes:

"the 2015th financial year became extremely successful for Jungheinrich again. We exceeded the ambitious forecasts for key financial indicators: to incoming orders, net sales and profit – also increased the share in the key market, in Europe, and around the world. Moreover, in 2015 the consolidated profit of concern grew to 138 million Euros. Worthy level of volume of incoming orders at the end of last year remained in 2016, and gives to us the grounds for confidence in the relation of the first half of the year 2017".

In 2015 incoming orders in units of production made 97.1 thousand fork loaders that is 13% higher than the corresponding digit of previous year (85.6 thousand loaders). This gain definitely exceeds the general indicator on the industry in the world where growth actually was not observed: 1.1 million units of production in 2015 (previous year – 1.09 million units). Besides, this indicator also exceeds the positive trend mentioned in the European market: a gain for 8%, up to 373 thousand units of production (previous year – 345 thousand units). In total, it allowed Jungheinrich to increase the share in the European and world market.

In financial expression indicators according to incoming orders on all divisions of business of Jungheinrich grew by 11% and made 2,817 million Euros (previous year – 2,535 million Euros). Having reached digit 91.2 thousand pieces of equipment, production volume of concern for the first time exceeded a mark of 90 thousand units. The consolidated net sales increased by 10% - to 2,754 million Euros (previous year – 2,498 million Euros).

Profit before interest contribution and taxes (PDPN, EBIT) also grew by 10%, having reached 213 million Euros (previous year - 193 million Euros). Profit before taxation (PDN, EBT) reached 198 million Euros that is 13% higher than previous year (175 million Euros).

Strategically important steps – such as acquisition of the MIAS group specializing in production of cranes pilers for the purpose of the further growth of division of logistics systems and also expansion of network of direct sales and service of concern which will include Australia, Malaysia, the Republic of South Africa and Romania now were successfully implemented. For December 31, 2015, partly thanks to absorption, the number of personnel of group reached an absolute record – 13,962 people.

Opening of branch in Nizhny Novgorod

In 2015 the German concern Jungheinrich (Yungkhaynrikh) opened branch in Nizhny Novgorod, the sixth representation in the territory of the Russian Federation.