Jungheinrich Q1 results hold-up despite difficult market
Jungheinrich’s quarterly result for the first quarter of 2020 show that in the first three months of the year incoming orders were of the same level value as the previous year. Incoming orders by unit fell by 3% compared to the same period last year, while the global market for material handling equipment fell by 9%.
The 9% fall is largely a result of the sharply reduced demand in China: the COVID-19 pandemic had already reached its high point there in the first quarter of 2020. The IC engine-powered counterbalanced trucks product segment is most affected by the decline in demand. Around 70% of the 36 thousand fewer trucks on order come from this product segment.
Production at the Jungheinrich plants continued at an adjusted level and supply chains are reported to be largely intact. The only break in production was because of supply chain delays in the Moosburg plant, with production resumed immediately after Easter. Overseas Jungheinrich locations operated without greater restrictions even in the face of local governmental regulations. After-sales service technicians are active all over the world to the extent that this is possible under local conditions.
Jungheinrich’s chairman of the board of management, Dr Lars Brzosk, said, “Protecting the health of our employees and our customers as well as safeguarding our delivery capability are the top priorities for Jungheinrich. Our efforts last summer to make the company more weatherproof paid off and we were therefore able to react immediately to the first signs of crisis.”
The uncertainty surrounding the future consequences of the COVID-19 pandemic on global economic development means reliable estimates cannot currently be made about the business development over the remainder of the year. In light of this, the Board of Management of Jungheinrich AG decided a few weeks ago to retract the forecast for the 2020 financial year published in the 2019 annual report. Since the beginning of April, all regions and product segments have seen significant decline in demand, which will lead to a significant drop in incoming orders and revenue. The forecast will be updated as soon as global containment efforts cause the pandemic to slow down and the impact on the further business development of Jungheinrich over the rest of 2020 becomes reliably quantifiable.
“Jungheinrich has a future-oriented business model, a solid liquidity reserve and a healthy statement of financial position. Through their dedicated work, our teams all over the world are successfully helping us to overcome challenges through our crisis management. I am firmly convinced that on this basis we will emerge from this crisis stronger.
I would like to thank all customers, partners and suppliers for their faithful cooperation in these difficult times. I would also like to thank all Jungheinrich employees, who are currently performing exceptionally. With their work they are ensuring that important supply chains of companies that are part of critical infrastructure in particular, such as food production and distribution, pharmaceuticals, medical technology, supermarkets and transport, can reliably function all over the world. We are proud of the special effort and solidarity of our team,” said Brzoska.