Forklift truck manufacturer Kion is hoping for a tailwind from lower capital costs and the continuing trend towards automation.

In the medium to long term, the positive market trends for supply chain solutions are intact, the company announced on Thursday. The forklift truck business should also pick up somewhat. Demand is increasing in Asia and Europe in particular, while business in America is somewhat weaker. For the current year, the company is forecasting sales of between 11.2 and 12 billion euros - although this includes a decline in sales. In 2023, the company generated unprecedentedly high revenue of 11.4 billion euros.

Adjusted operating profit is expected to rise to between 790 and 940 million euros in the current year, compared to 790 million euros in 2023, almost three times as much as in the previous year on this basis. Kion CEO Rob Smith was satisfied with this. "We were able to significantly increase profitability in both our segments and for the Group," he said. This has laid a solid foundation for further business development. Shareholders will now receive a dividend of 70 cents per share, compared to 19 cents a year ago.

In contrast, the company recorded a seven percent decline in incoming orders to 10.9 billion euros. In particular, business in the Supply Chain Solutions segment, which includes warehouse automation, was weaker. Many customers had postponed investments in new warehouse space and the associated technology due to the rise in interest rates, the company said. The higher-margin services business performed better.

Nevertheless, the figures were well received on the stock exchange: The shares gained a good seven percent to 46.48 euros, their highest level for around one and a half years. Analyst Peter Rothenaicher from Baader Helvetia Bank praised the strong order intake and the confident outlook. "Kion is still well on track to put the difficult two years behind it and make progress towards its medium-term targets," wrote analyst Alexander Hauenstein from DZ Bank. "We see the trends towards more e-commerce and automation of warehouse technology confirmed."

(Report by Christina Amann, edited by Sabine Wollrab. If you have any questions, please contact our editorial team at Berlin.Newsroom@thomsonreuters.com (for politics and the economy) or Frankfurt.Newsroom@thomsonreuters.com (for companies and markets)