Strong second quarter for Wacker Neuson
Compact equipment major revises outlook for the year upwards after reporting rises of 11% and 9% in quarterly and half-yearly revenues
International light and compact equipment manufacturer Wacker Neuson has reported revenues of EUR 425.2 million for the second quarter of 2017, an increase of 11% over the EUR 381.4 million it reported for the same period last year.
The company said in a statement that the figures are a record for quarterly revenue and also revealed that profitability had improved significantly, standing at EUR 46.7 million before interest and tax (EBIT) – a rise of 41% percent on the EUR 33.2 million reported for the second quarter of last year. The resulting EBIT margin stood at 11%, compared to the previous 8.7%.
Bolstered by the positive outlook for the second half of 2017, the company has raised its revenue forecast for the current fiscal year, added the statement.
Meanwhile, half-yearly revenue climbed 9% to EUR 763.7 million this year, compared to EUR 697.8 million last year. Half-yearly EBIT increased by 20% relative to the previous year to EUR 61.0 million and the EBIT margin amounted to 8%. When adjusted to discount one-off effects in the first quarter, the EBIT margin for the first half-year is slightly higher at 8.2%.
In its largest market, Europe, which currently accounts for around 73% of revenue, the group reported a 6% rise in revenue compared with the previous year. Revenue gains were higher in the Americas.
“We reported a 32% rise in revenue in North and South America for the second quarter and an increase of 23% for the first six months of the year. We are particularly pleased to see strong growth in compact equipment, especially with our skid steer loaders, wheel loaders and telescopic handlers. We have also made further progress on expanding our dealer network,” said Cem Peksaglam, CEO of Wacker Neuson SE.
“Our light equipment business is developing particularly strongly at the moment. Worksite technology is leading the way here, with products such as generators and light towers performing especially well in North America. We are also seeing strong results from compaction technology, in particular with products connected to our alliance with Hamm AG,” added Peksaglam.
In contrast, there was a drop in revenue in Asia-Pacific, which contributes around 3% of the group’s total revenue. This decrease was primarily linked to a one-off effect in the first quarter of 2016 involving dealers in China stocking up on compact equipment, which increased the baseline for comparisons, said the statement. Business in Australia and New Zealand showed double-digit revenue growth for the first half of 2017. In the second quarter of 2017, revenue increased by 65% in Asia-Pacific.
A strategic alliance between global market leader for agricultural machines, John Deere, and Group member Kramer, which was announced in July, puts the company on course to further expand its compact agricultural equipment footprint in Europe, the statement added.
Speaking about the forecast for the rest of the year, Peksaglam added: “We are positive about the second half of 2017 due to the healthy order situation and positive mood across all key markets. In Europe, we expect the construction industry to continue on its positive growth path. In Americas, we expect the strong performance of the first six months to continue, fuelled in particular by business with compact equipment.”
The company has raised its revenue forecast for the year to between EUR 1.45 and EUR 1.50 billion, from the previous EUR 1.40 to EUR 1.45 billion, corresponding to an increase of between 7 and 10%, from the previous 3 to 7%.
