Jungheinrich looks to 2021 financial year with confidence
In spite of the economic impact of the global pandemic, Jungheinrich was able to close the 2020 financial year on a very positive note. Incoming orders and sales were valued at EUR 3.8bn (previous year EUR 4.07bn) and earnings before interest and taxes (EBIT), an indicator of a company’s profitability, was listed at EUR 218m (previous year EUR 263m). The cash flow from operating activities exceeded the previous year at EUR 551m (previous year EUR 345m).
Jungheinrich CEO Dr. Lars Brzoska, said, “Against the background of the general and market conditions made more difficult by the COVID-19 pandemic, we are satisfied with the course of business for the year. Thanks to early measures to reduce costs and increase efficiency, as well as our resolute safeguarding of liquidity, we were able to successfully limit the negative effects of the pandemic on our business.”
At the end of 2020, a net credit of EUR 194m was recorded. At the same time last year, the Group had net debt of EUR 172m, showing an improvement of EUR 366m. This was driven by lower investments, the reduction in the rental fleet and the release of working capital. By the end of 2021, the group is aiming for a net credit of well over EUR 200m.
In view of the positive market development in recent months and in view of the IMF’s growth expectations for the global economy of 5.5 percent in the current year, Jungheinrich expects the global market for material handling equipment to grow in the mid to high single digit percentage range in 2021.
Brzoska said: “The crisis year of 2020 was an extraordinary test for all of us, both professionally and personally. Due to our strong line-up, we were able to successfully pass this. We have proven how resilient and crisis- proof Jungheinrich is . Even if the current year still harbors corona-related uncertainties, we are approaching it optimistically due to the expected positive market development . We are concentrating on our profitable growth, increasing efficiency and successfully implementing our strategy.”
The company undertook extensive COVID-19 crisis management including the formation of a central crisis team, supported by local teams in the organisational units and plants to identify emerging risks at an early stage and to minimise their effects on the company through timely, suitable and coordinated measures. The top priority was the protection of the workforce, customers and business partners. Alongside this, extensive precautions were taken to minimise the impact of the pandemic on supply chains and production.
As a thank you for this extraordinary work and in recognition of the additional burden caused by the crisis, Jungheinrich paid its staff a special corona bonus totaling EUR 13.5m at the end of the year.
Brzoska said, “It is thanks to the outstanding commitment of our employees that we were able to achieve such a result together, in the year of the greatest medical and economic crisis since the Second World War.”
Based on their 2025+ corporate strategy, Jungheinrich will continue to focus on increasing profitability, efficiency and sustainability. The business had already achieved its strategic growth target for 2020 a year earlier than planned and has now set itself the goal of creating sustainable values for all of its stakeholders – customers, employees, shareholders, business partners and society as a whole.
The group is also placing particular focus on expanding its presence in the markets of Europe, China and North America.
Forecast for 2021 sales, incoming orders and EBIT are above previous year’s level.
Brzoska said, “We want to be the first choice for our customers in the long term and offer them added value through future-oriented solutions and technologies. At the same time, as a group, we want to help shape economic, ecological and social developments. To do this, we are making Jungheinrich more profitable, efficient and sustainable.”