(Reuters) -German forklift truck maker Jungheinrich said on Monday it had agreed to sell its Russian unit to a Russian financial investor and asset manager, and was cutting its full-year profit forecast as a result.
Due to the sale of Russia-based Jungheinrich Lift Truck OOO, Jungheinrich said it now expects earnings before interest and income taxes (EBIT) to be between 160 million euros and 230 million euros ($186 million-$268 million) for the year, down from a previously forecast 280 million to 350 million euros.
It also expected earnings before taxes (EBT) of 130 million to 200 million euros, against a previous forecast of 250 million to 320 million, with a return on capital employed (ROCE) of between 5% and 9%, from previously 10%-14%.
The company said that the sale price agreed for its Russian subsidiary, with an investor it did not name, was significantly below the book value of the participation as of December 31, 2024. This was due to a requirement by the Russian Government Commission on the Control of Foreign Investments for the sale price to be a maximum of 40% of the market value of the affected Russian company as determined by a Russian valuation expert, it said.
Jungheinrich kept its full-year guidance for incoming orders and revenue unchanged.
($1 = 0.8587 euros)
(Reporting by Linda Pasquini; editing by Matthias Williams and Susan Fenton)
