"Protecting the health of our employees and customers and safeguarding our ability to deliver are top priorities for Jungheinrich. It pays off that we already made ourselves weatherproof last summer and were therefore able to react immediately to the first signs of crisis," says Jungheinrich CEO Dr. Lars Brzoska.

The uncertainty surrounding the future impact of the COVID-19 pandemic on global economic development does not currently allow for a reliable assessment of business development over the remainder of the year. Against this backdrop, the Board of Management of Jungheinrich AG decided last week to withdraw the forecast for the 2020 financial year published in the 2019 Annual Report. Since the beginning of April, there has been a considerable drop in demand across all regions and product segments, which will lead to a significant decline in incoming orders and sales. The forecast will be updated as soon as the global containment efforts result in a weakening of the pandemic and the impact on Jungheinrich's further business development during the rest of 2020 can be reliably quantified.

"Jungheinrich has a forward-looking business model, a solid liquidity reserve and a healthy balance sheet structure. Through their dedicated work, our teams around the world are successfully helping us to overcome the challenges with our crisis management. I am firmly convinced that we will emerge stronger from this crisis on this basis.

I would like to sincerely thank all customers, partners and suppliers for their trusting cooperation in these difficult times. I would also like to thank all Jungheinrich employees who are currently performing exceptionally well. With their work, they are ensuring that the important supply chains of companies in the so-called critical infrastructure, including food production and distribution, pharmaceuticals, medical technology, supermarkets and the transportation industry, function reliably worldwide. We are proud of this special commitment and cohesion of our team," says Brzoska.

Development January to March 2020: market development

The global market volume for industrial trucks fell by 9% in the first quarter of 2020 compared to the same quarter of the previous year. The noticeable decline is largely due to the sharp drop in demand in China. The COVID-19 pandemic had already peaked there in the first quarter of 2020. The product segment most affected by the decline in demand worldwide is IC engine-powered counterbalanced trucks. Around 70% of the 36 thousand fewer trucks ordered were in this product segment.

Business development of Jungheinrich

At 32.1 thousand vehicles in the first quarter of 2020, the number of incoming orders for new business, which includes orders for new vehicles and rental equipment, was 3% below the previous year's figure (33.2 thousand vehicles). At € 1,016 million, the value of incoming orders, which includes all business areas - new business, rental and used equipment as well as after-sales service - remained at the previous year's level (€ 1,021 million) in the reporting period. At the end of the quarter under review, the order backlog for new business amounted to € 889 million and was therefore € 98 million or 10% lower than the previous year's figure (€ 987 million). Compared to the order backlog value of € 787 million at the end of 2019, there was an increase of € 102 million or 13%.

At €920 million, consolidated net sales were 3 per cent lower than in the previous year (€948 million), primarily due to the decline in new truck business. The Jungheinrich Group closed the first quarter of 2020 with earnings before interest and taxes (EBIT) of €53.7 million (previous year: €59.6 million). The EBIT return on sales (EBIT-ROS) amounted to 5.8 per cent (previous year: 6.3 per cent). Earnings before taxes (EBT) from January to March 2020 therefore amounted to € 43.5 million (previous year: € 56.5 million). The EBT return on sales (EBT-ROS) amounted to 4.7% (previous year: 6.0%). As at March 31, 2020, net debt amounted to € 104 million (December 31, 2019: € 172 million).

Forecast

In view of the great uncertainty about the future impact of the COVID-19 pandemic on global economic development, the Board of Management of Jungheinrich AG withdrew the forecast for the 2020 financial year published in the 2019 Annual Report on April 27, 2020. The current spread of the pandemic in all regions of the world and the containment measures adopted by governments do not currently allow a reliable assessment of Jungheinrich's business development over the rest of the year. The forecast will be updated as soon as the global containment efforts result in a weakening of the pandemic and the effects on Jungheinrich's further business development during the rest of 2020 can be reliably quantified.