Kion Group's Full Second-Quarter Results Confirm Customer Prestock and Margin Pressure

Kion Group reported full second-quarter results after releasing high-level results and revised guidance earlier. We are maintaining our fair value estimate and narrow moat rating. The second quarter was noisy against easy year-ago comparisons, with customer prestocking ahead of price increases, a tight supply chain, and raw material increases. As a result, we don't read too much into revenue and order growth for this quarter. However, the business continues to show reinvestment needs to support growth but also continues to keep a lid on margins and returns. Management lowered expectations for 2023 ongoing savings by EUR 15 million to a minimum of EUR 80 million with more support for selling, general, and administrative expenses necessary.