By Andrea Figueras
Shares in Kion have taken a hit as the company reported a decline in its order book for the first nine months of the year compared to last year's high levels.
At 0848 GMT, shares were down 3.7% to EUR31.37.
Kion, a German supplier of forklifts and warehouse equipment, saw its net profit increase to 228.3 million euros ($241.2 million) for the first nine months, up from EUR66.9 million during the same period last year.
Revenue grew 1.3% to EUR8.35 billion, and adjusted earnings before interest and taxes more than doubled to EUR571.9 million, compared to EUR210.6 million in the previous year.
However, the order book fell to EUR6.63 billion from EUR7.08 billion in 2022, while the order intake decreased to EUR7.93 billion from EUR9.17 billion during the same time frame last year.
According to a research note by Citi analysts, Kion, like other companies in the capital goods sector, experienced a surge in its order backlog in 2022 due to supply chain constraints and customers ordering goods in advance.
Citi stated that investors will be keeping an eye on the order slowdown and the sustainability of margins in the upcoming year.
Despite the decrease in orders, Kion has upgraded its full-year adjusted EBIT targets, thanks to better-than-expected performance in the Industrial Trucks & Services segment. The company now expects to achieve a minimum of EUR780 million, up from the previous forecast of a minimum of EUR680 million.
However, revenue guidance has been downgraded to EUR11.2 billion from EUR11.4 billion in the previous outlook.