In the third quarter of 2019, Kuka generated earnings before interest and taxes (EBIT) of 35.6 million euros. In the same period of the previous year, earnings amounted to 26.4 million euros. The EBIT margin also increased from 3.1 percent in the third quarter of the previous year to 4.3 percent in the third quarter of 2019.

The automation specialist attributes this positive development to efficiency measures that were introduced at the beginning of the year. "We took measures at an early stage with an efficiency programme to stabilize Kuka in economically turbulent times," said CEO Peter Mohnen. "Nevertheless, the economic conditions remain difficult. We will therefore continue to pursue this course consistently."

The persistently weak global economy and trade policy uncertainties are causing customers to hold back on investments. Added to this is the restructuring of a sub-division in the Robotics business segment, which is responsible for automated production solutions such as cells and special machines. These developments are likely to have a negative impact on EBIT from the fourth quarter onwards. Kuka therefore adjusted its forecast for the 2019 financial year in September and now expects sales of around 3.2 billion euros. The EBIT margin, including all reorganization expenses, should nevertheless be above the previous year's level of 1.1 percent, according to the company.

Declines in incoming orders
The Group recorded incoming orders of EUR 624.8 million in the third quarter of 2019. This corresponds to a decline of 16.7% compared to the third quarter of 2018 (750.1 million euros). Kuka is feeling the effects of this restraint in the automotive and electronics industries in particular. The Systems, Robotics and China business segments are particularly affected. Sales revenue fell slightly by 2.1 percent to 832.9 million euros (2018: 851 million euros). as