Earnings

The cost of sales grew at a slower rate than revenue, rising by 4.5 per cent to €2,695.8 million (Q1 – Q3 2015: €2,580.2 million). Gross profit improved to €1,151.9 million (Q1 – Q3 2015: €1,077.1 million), while the KION Group’s gross margin advanced to 29.9 per cent (Q1 – Q3 2015: 29.4 per cent).

Selling expenses grew by 7.2 per cent to €475.1 million in the first nine months of this year (Q1 – Q3 2015: €443.2 million) as a result of the increase in sales activities – partly in connection with the consolidation of Egemin Automation. Development costs in the same period decreased slightly year on year to €105.0 million (Q1 – Q3 2015: €106.1 million). At €290.7 million, administrative expenses were higher than in the corresponding prior-year period (Q1 – Q3 2015: €261.0 million), partly because of consultancy expenses incurred in connection with the Dematic acquisition. The ‘other’ item came to €37.1 million (Q1 – Q3 2015: €23.4 million). This included the share of profit (loss) of equity-accounted investments, which amounted to a profit of €9.9 million (Q1 – Q3 2015: profit of €7.8 million). > TABLE 07

There was a decline in the balance of financial income and financial expenses, leading to net financial expenses of €79.6 million (Q1 – Q3 2015: net financial expenses of €68.2 million). Non-recurring financial expenses of €25.7 million arose in February 2016 as a result of the new financing structure, but these have already been largely offset by the optimised financing.

Income tax expenses amounted to €74.2 million (Q1 – Q3 2015: €78.2 million). Current income taxes came to €52.1 million (Q1 – Q3 2015: €105.4 million). The tax rate was 31.1 per cent (Q1 – Q3 2015: 35.2 per cent).

The KION Group’s net income after taxes was €164.4 million (Q1 – Q3 2015: €143.8 million). Diluted and basic earnings per share for the reporting period came to €1.59 (Q1 – Q3 2015: €1.44).