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In light of the ongoing significant uncertainties in the procurement markets, which are massively exacerbated by the military conflict in Eastern Europe and renewed COVID-19 lockdowns, the Executive Board of KION GROUP AG decided on Monday, April 4, 2022, to withdraw the forecast for the fiscal year 2022 for the KION Group and its operational segments published on March 3, 2022.
(Frankfurt/Main) “Due to the expected significantly longer-lasting supply shortages, the continuing sharply rising material and logistics costs, as well as renewed COVID-19 lockdowns, particularly affecting the Asian market, the forecast for the fiscal year 2022 can no longer be maintained,” said Rob Smith, CEO of KION GROUP AG. From today’s perspective, neither the further course of the military conflict in Eastern Europe nor the COVID-19 pandemic or their economic impacts can be reliably assessed. “There are significant uncertainties in assessing the business development of the Group for the remainder of the fiscal year,” Smith summarized.
New Forecast in the Course of the Year
Furthermore, current insights indicate that the adjusted EBIT of the Group in the first quarter of 2022 will be significantly below the comparative figure of the previous year of €215 million, despite strong order intake and revenue, but within the current expectations of the capital market. The adjusted EBIT is expected to be primarily influenced by a lack of parts availability and sharply increased material costs in the range of the fourth quarter of 2021. In addition, KION Group anticipates non-cash-effective one-off and special effects in the first quarter of 2022 amounting to a significantly double-digit million figure. These are related to a possible impairment of the assets used for the business with Russia.
The free cash flow for the first quarter of 2022 will also be significantly negative compared to the previous year’s figure of €262 million.
Figures for the First Quarter on April 28, 2022
“Our diversified positioning as a full-service provider in the field of intralogistics, our strong global presence, and our solid financial base are good prerequisites for mastering these new challenges alongside the pandemic,” said Smith. “The fundamental drivers of our industry remain intact. We continue to focus on profitable growth and the implementation of our strategy, ‘KION 2027’.”
Photo: © KION
