Struggles persist for teen Heinrich.
Jungheinrich, the German forklift manufacturer, has announced a savings program aimed at optimising production, management, and administration, with the goal of reducing jobs by 1,000. This move comes in response to weak economic momentum, particularly in the company's core European market.
In the second quarter, Jungheinrich's orders increased by approximately 4% to around 1.4 billion euros, but the operating profit before interest and taxes (EBIT) fell by more than 6% to 106 million euros. Sales remained virtually unchanged at around 1.3 billion euros.
The savings program is expected to reduce the company's costs by around 100 million euros per year in the medium term, but will initially result in one-off expenses of around 90 million euros in the current year. These expenses are set to account for around two-thirds of the total in the current quarter, with the remaining one-third expected in the final quarter of the year.
The stock's decline follows two profit warnings issued by the company recently, and the share lost around 2% on Friday morning, making it one of the weakest performers in the MDAX. Despite the increase in orders, net profit for Jungheinrich was around 7% lower at 70 million euros in the second quarter.
For 2025, Jungheinrich's management now expects both orders and sales to be between 5.3 and 5.9 billion euros, significantly lower than the 434 million euros from the previous year. Peter Rothenaicher of Baader Bank attributed the weaker margin to the reasons behind the company's performance.
It's important to note that while Jungheinrich offers assistance systems like warehouseNAVIGATION and liftNAVIGATION that improve efficiency, accuracy, and throughput by automating forklift positioning and lifting functions, potentially leading to operational savings in warehouse logistics, there is no publicly available information about a specific savings program that details its features, impact, or timeline.
Jungheinrich's share price of preferred stock listed in the MDAX has risen by around 30% this year, outperforming the index for medium-sized companies which has risen by almost a quarter since the end of 2024. However, the stock has lost around one-fifth of its value in the past four weeks.
The company has also reported a significant intensification of international competition and increasing pressure on prices in new business. Jungheinrich's management has corrected its outlook twice in July, the first correction being due to weak business development and costs related to the new savings program, and the second correction due to negative effects related to the sale of its Russian business.
For precise, updated details on any official Jungheinrich savings program, it would be best to consult Jungheinrich’s direct corporate communications or contact their representatives.
- The savings program, aimed at streamlining production, management, and administration within Jungheinrich, is anticipated to reduce costs by around 100 million euros annually in the medium term, potentially impacting the company's finance and business operations.
- Despite Jungheinrich's offerings of efficiency-improving systems like warehouseNAVIGATION and liftNAVIGATE in the finance and industry sector, there is no publicly available information regarding a specific savings program that elaborates on its features, impact, or timeline.
