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Investing.com -- Shares of Jungheinrich AG (ETR:JUNG_p) (ETR:JUN3) climbed 3% today following the announcement of what Jefferies described as "ambitious" Strategy 2030, which sets significant revenue and earnings targets that exceed current market expectations.
The company aims to achieve €10 billion in revenues and an adjusted EBIT margin of 10% by 2030, surpassing the consensus estimates of €6.76 billion in revenues and an 8.0% margin.
Jungheinrich’s growth strategy involves expanding its global presence, particularly in North America and the Asia-Pacific region, and capitalizing on innovation in warehouse automation, which is expected to outperform the market’s compound annual growth rate of 8%.
A new partnership with EP Equipment is also anticipated to contribute to product expansion in forklifts. The company’s DEEP program is set to drive productivity and efficiency, enhancing margins. Additionally, Jungheinrich aims for an 80% cash conversion rate, with investments focused on innovation and mergers and acquisitions, alongside a commitment to maintaining a reliable dividend.
Despite the ambitious long-term goals, Jungheinrich maintained its 2025 outlook, projecting orders between €5.5-6.1 billion, revenues between €5.4-6.0 billion, and EBIT between €430-500 million, aligning with consensus estimates. The company also expects free cash flow to exceed €300 million.
In the short term, Jungheinrich reported that incoming orders for the first quarter rose by 2% year-on-year (YoY) to €1,386 million, slightly ahead of consensus estimates. Orders on hand for new trucks remained robust, and the book-to-bill ratio stood at 1.06x. Management noted that the first quarter’s performance was in line with expectations despite economic and geopolitical challenges.
Revenues for the quarter also surpassed expectations by 2%, reaching €1,305 million, a 2% increase YoY, driven by growth in both new business and service sectors. The intralogistics segment saw nearly a 3% rise, while financial services experienced a slight decline.
Earnings before interest and taxes (EBIT) for the quarter were 3% higher than consensus, at €104.5 million, resulting in an EBIT margin of 8.0%, which is slightly above expectations. The improved margins reflect the ongoing effects of efficiency measures initiated last year.
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