Kuka announced its results for the past financial year. The automation specialist recorded a decline in order intake of 3.5% to 3.19 billion euros (2018: 3.31 billion euros). Turnover fell slightly by 1.5% to 3.19 billion euros. The book-to-bill ratio amounted to 1.00 in the 2019 financial year, down slightly on the previous year (2018: 1.02). The company emphasizes that despite the difficult market environment, EBIT increased from EUR 34.3 million in 2018 to EUR 47.8 million in the current financial year. This was possible because the Group reacted to the changed conditions in good time and introduced comprehensive efficiency measures in January 2019. As a result, the cost structure was improved, particularly in the central functions. The EBIT margin rose from 1.1% to 1.5% in 2019. The number of employees was 14,014 as at December 31, 2019 (previous year: 14,235). The efficiency program initiated at the beginning of 2019 also included a socially responsible reduction of 350 jobs at the Augsburg site. This was completed at the end of the year.

The Group expects the market environment to remain difficult in 2020, which will be exacerbated by the coronavirus crisis. "The pandemic is presenting our society and the economy with completely new challenges. We are also feeling this at Kuka, all around the world," said CEO Peter Mohnen. He emphasized that instead of discussing the market situation, it is now important to set the right levers for the future: Over the next three years, the Group plans to invest around half a billion euros in research and development in order to drive innovation. Each division is actively focusing its innovations on growth areas. The aim is to expand the business into new markets, software and digital services. At the same time, sustainability is to be driven forward. The company is therefore working to conserve resources in an even more targeted manner when improving its portfolio and to reduce energy requirements in its own and customers' facilities.

The business units at a glance

Kuka Systems is primarily responsible for plant engineering in the automotive sector. Here, order intake fell by 10.6% from €959.8 million in 2018 to €858.0 million in the reporting year. The decline reflects the noticeable reluctance of customers to place orders. The technology-driven trend in the automotive industry towards converting existing production lines instead of installing new systems contributed to a significant reduction in market size. At EUR 925.4 million, sales were nevertheless at the same level as in 2018 (EUR 925.4 million). Sales from the lower order volume were compensated for by the start of production at KTPO (Kuka Toledo Production Operations in Ohio/USA). The book-to-bill ratio fell from 1.04 to 0.93 compared to the same period in the previous year. EBIT amounted to €26.9 million and was therefore 8.8% below the previous year's figure of €29.5 million.

Earnings were negatively impacted by the difficult order situation and deterioration in projects in Europe. The high complexity of these projects led to delays in project processing and consequently to additional costs. The EBIT margin fell from 3.2% to 2.9% in the current financial year.

Lower order intake and sales in Robotics

Kuka Robotics generated incoming orders of EUR 1,037.1 million in the 2019 financial year, which corresponds to a decrease of 13.3% compared to the previous year (2018: EUR 1,196.5 million). Sales fell by 7.1% to 1,159.2 million euros in the reporting year (2018: 1,247.3 million euros). Due to the persistently difficult global economic situation, customers continue to hold back on placing orders. The book-to-bill ratio was 0.89 (2018: 0.96). The lower sales volume as well as the difficult economic situation in a sub-division of the Robotics segment, which has been strained for years, had a negative impact on earnings. This sub-segment supplies automated manufacturing solutions such as cells and special machines worldwide. In September 2019, Kuka announced a restructuring program for this area, which had a negative impact on EBIT in the low double-digit million range in the reporting year. EBIT in the Robotics segment amounted to EUR 37.7 million after EUR 80.9 million in the same period of the previous year. Accordingly, the EBIT margin of 3.3% was also below the previous year's figure of 6.5%. In the previous year, a low double-digit million euro amount from the sale of company shares had a positive effect on EBIT.

Logistics division on the upswing

Swisslog's logistics division recorded a strong increase in incoming orders of 24.8% to EUR 750.2 million after EUR 601.1 million in the 2018 financial year. This increase was achieved thanks to the consistent implementation of the growth strategy. Swisslog is benefiting from continued high global customer demand in its focus markets of e-commerce/retail and consumer goods. Sales revenue amounted to EUR 600.0 million and was 1.2% below the previous year's level of EUR 607.1 million. The book-to-bill ratio rose to 1.25 (2018: 0.99). EBIT rose significantly to EUR 10.5 million after EUR -0.2 million in the same period of the previous year. The EBIT margin rose to 1.8% after 0.0% in 2018.

Forecast suspended

The impact of the coronavirus crisis on the forecast results cannot be estimated at this time. Therefore, no sales and earnings forecast can currently be given. This has already been pointed out in the annual report. Kuka is working on positioning itself for the time after the coronavirus pandemic.