Jungheinrich acquires arculus GmbH and drives implementation of strategy 2025+

By MEq November 19, 2021 15:00

Jungheinrich sees positive results in the first three quarters of the 2021 financial year. Even amidst the challenging environment of strained global supply chains, the Group was able to increase its financial key figures, in some cases significantly, compared to the previous year.

Incoming orders after nine months exceeded the previous year’s figure by 31 percent at €3.58 billion. Group revenue increased to €3.02 billion. In a market environment that continues to be challenging, EBIT improved significantly by 72 percent to €258.4 million. EBIT return on sales increased to 8.6 percent. Net credit amounted to €295 million as of 30 September 2021. Orders on hand at Jungheinrich AG came to €1.43 billion as of the balance sheet date and were thus 71 percent higher than in the previous year. As a result of this positive development, Jungheinrich raised its forecast for incoming orders and earnings for the entire 2021 year in October.

Dr Lars Brzoska, Chairman of the Board of Management of Jungheinrich AG: “Despite global supply bottlenecks and much higher material costs, Jungheinrich saw very good business development in the first nine months of the current year. We have largely managed to avoid production standstills through targeted, timely management of our supply chains. This is a major accomplishment, and I would like to thank all the employees, partners and suppliers for making it possible. We will continue to fully implement measures to ensure Jungheinrich’s ability to deliver. The good result and solid orders on hand give us a tailwind for further business development and the continued implementation of our Strategy 2025+.”

Update Strategy 2025+
As part of its quarterly reporting, Jungheinrich is providing the first update on the ongoing implementation of its Strategy 2025+. In light of the current market and business development, the company reviewed and adjusted the strategy’s targets based on the updated expectations for the next few years, as previously announced. The new forecast now expects Group revenue to grow organically to €5.5 billion (previously: €4.6 billion ), the target EBIT return on sales to be in a range of 8 percent to 10 percent (previously: >8 percent) and the new key performance indicator ROCE to reach a value between 21 percent and 25 percent. EBIT per employee is expected to be around €23,000.
A number of Strategy 2025+ projects and measures were initiated around the world in the current year, and some have already been fully implemented.

Automation is key to the future growth of Jungheinrich. In light of this, the Group acquired arculus GmbH, a technology company based in Munich that operates in the autonomous mobile robots (AMR) sector, in the fourth quarter of 2021. arculus focuses on autonomous mobile robots, modular production platforms, and software solutions for mobile automation with its experienced team of hardware and software specialists at its sites in Munich, Ingolstadt, Stuttgart and Dresden. Many well-known automotive manufacturers and industrial clients from various other sectors are among arculus clients.

In acquiring arculus, Jungheinrich has added highly innovative hardware and software solutions in the rapidly growing autonomous mobile robots sector to its existing portfolio of automation systems. With arculus’s software management system recognized at IFOY Award 2021, AMR and AGV fleets from any manufacturer can be operated with the VDA 5050 interface. Dr Brzoska explains the advantages: “With the acquisition of arculus, we have been able to comprehensively expand our expertise in the automation field of action. Important areas of application – like good-to-person order picking – will see continued strong growth, not least because of the ever-increasing amount of e-commerce. With the team from arculus, we can achieve strong growth synergy and unlock important future fields of action in automated warehouse logistics. Together we are opening a new chapter in the history of the warehouse of the future.”

With the “New IT Plant” project, Jungheinrich has created a hybrid cloud foundation within the digitalization field of action that further interconnects people, machines, and software around the world to make new value-adding business models possible. At the same time, the digital fleet management system “Jungheinrich FMS” was further extended in 2021. The central, digital management of fleets, including the access management, detailed evaluation of operating hours and costs, and detailed recording of shocks give operators significant advantages in resource scheduling, maintenance, and the availability of trucks. New modules give customers additional advances in productivity and offer a high level of user-friendliness and proactive management of critical situations.

Electric mobility is Jungheinrich’s core skill. As part of Strategy 2025+, the Group is expanding its leading position in energy systems. The new generation of trucks with an integrated lithium-ion battery is an essential part of the strategic orientation in this area. In 2021, Jungheinrich brought two more new trucks with this battery concept to market. Both electric pallet trucks are significantly shorter than previous models thanks to this intelligent integration of the battery. This gives it special agility and maneuverability while driving and allows for precision even in the narrowest spaces. It also creates additional valuable storage space. Alongside this industry-leading compact size, they are both the most comfortable and safest trucks of their classes.

Activities in the DEEP program, which aims to further the digital transformation and increase Group efficiency, in 2021 have included completing the as-is-analysis, including defining the IT target architecture. To further increase customer-centricity, implementation projects have been started, particularly the development of a new ERP system.

Proximity to customers through having a local presence in an international network is one of the central factors for the success of the Jungheinrich business model. The strategic goal of Strategy 2025+ is to further expand the Group’s global footprint and achieve a 20 percent share of revenue outside of the core European market. This is why Jungheinrich intends to increase its growth mainly in North America, but also in Asia.

The core goal of Strategy 2025+ is to create sustainable value for all Jungheinrich stakeholders. Jungheinrich is aware of its economic, environmental, and social responsibility for the Group’s activities around the world. Sustainability significantly determines the company’s direction now and in the future and forms the foundation for cooperation at Jungheinrich and its impact. Goals and standards for this sustainable action throughout the whole company were developed as part of Strategy 2025+.

Since the first quarter of 2021, all Jungheinrich sites in Germany have been operating exclusively with green electricity; international branches and plants will gradually make the transition. In addition, the Group has begun to generate its own solar power at some of its sites, and all eligible properties will be equipped with photovoltaic facilities step by step. At the same time, the Group-wide company car fleet is also being converted to electric vehicles. Models are also being developed within the company at the moment to anchor sustainability principles in the product development process as well. This includes intensifying our work with suppliers and adjusting as necessary. Standards have been developed for working with suppliers, compliance with which will be regularly audited. The ambitions and measures to protect the climate and resources are proof that Jungheinrich takes its responsibility seriously. With our sustainable product portfolio, we want to be our customers’ first choice.