KION Group is off to a strong start in the fiscal year 2023
Based on preliminary figures, the KION Group recorded better-than-expected business performance in the first quarter of 2023 thanks to the Industrial Trucks & Services (ITS) segment. The significant increase in adjusted EBIT in the ITS segment to an expected €177 million (previous year: €114.2 million) mainly reflected the improving supply chain situation and pull-forward benefits from operational and commercial agility. As a result, the preliminary adjusted EBIT margin for ITS rose to 8.8 percent (previous year: 6.6 percent). Accordingly, the KION Group’s adjusted EBIT was better than expected. “The strong development in the ITS segment shows that the measures we have introduced are taking effect. That is why we have raised our outlook. The Group is well on the way to sustainably increasing profitability,” said Rob Smith, CEO of KION GROUP AG. The development of revenue and adjusted EBIT at SCS was in line with KION Group expectations. Order volumes in the SCS segment were significantly lower than the prior year’s level due to continued restraint in customers’ investment decisions causing delays in new orders. Free cash flow is expected to be clearly positive at €105 million (previous year: €-432.6 million). In addition to operating profit, stable net working capital compared with year-end 2022 was a major contributory factor. Due to the strong first quarter at ITS, the Executive Board of KION GROUP AG has adjusted the outlook for the fiscal year 2023 for the Group and for the ITS segment as follows:
KION Group’s key performance indicators for the first quarter, which ended March 31, 2023 (preliminary results)
[1] Adjusted for purchase price allocation items and non-recurring items
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