Shares in Jungheinrich have fallen by 6.4% after the company reported a second-quarter profit margin that wasn't as high as expected. The German warehouse product manufacturer revealed that its earnings before interest and taxes for the quarter rose by 38% to EUR115.7 million ($127 million), resulting in a margin of 8.5%, up from 7.4% last year. However, analysts at Citi had predicted an EBIT margin of 9.2%. Despite this, Jungheinrich maintained its guidance for the full year.
Financial Performance
In the second quarter, Jungheinrich recorded a revenue increase of 20% to EUR1.37 billion, while incoming orders also grew by 18% to EUR1.33 billion. The company's outlook for the full year remains unchanged, with expected incoming orders ranging between EUR5.0 billion and EUR5.4 billion, revenue between EUR5.1 billion and EUR5.5 billion, and an EBIT margin of 7.8% to 8.6%.
Analysts' Perspective
Analysts at Citi expressed their concern about the company's guidance, stating that they had anticipated an improvement in the EBIT margin in the second half of the year. The current forecast suggests a significant decline in margins during this period, with the midpoint indicating a 6.6% EBIT margin.
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