Wacker Neuson Reports Highest 9M Revenue Since Merger

Despite the difficult economic climate, Munich-based light and compact equipment manufacturer Wacker Neuson reported an upturn in business in the third quarter of 2013. The Group remains committed to its forecast for 2013. Wacker Neuson Group revenue for the third quarter rose 8.6 percent relative to the previous year to reach EUR 276.3 million (Q3 2012: EUR 254.5 million). Adjusted to discount currency fluctuations, this corresponds to an increase of 13 percent. 

The Group’s corporate strategy continues to pay dividends. "We are taking targeted measures to expand our presence in Europe and the Americas and are also broadening our industry focus. In addition to our core business, we are expanding our reach in other markets. This is the right path forward for the Group, as demonstrated by the 21-percent rise in compact equipment revenue relative to the previous year," adds Peksaglam. The services segment reported a 7-percent increase on the previous year. Revenue from the light equipment segment fell by 2 percent in Q3. The light equipment business was particularly hard hit by currency fluctuations. When adjusted to discount currency fluctuations, revenue generated by this segment increased by 5 percent.

The Group reported a favorable rise in earnings in the third quarter. At EUR 41.2 million, profit before interest, tax, depreciation and amortization (EBITDA) increased by 21 percent relative to the previous year (Q3 2012: EUR 34.1 million). This corresponds to an EBITDA margin of 14.9 percent (Q3 2012: 13.4 percent). Profit before interest and tax (EBIT) amounted to EUR 26.5 million (Q3 2012: EUR 20.1 million). The EBIT margin thus rose to 9.6 percent (Q3 2012: 7.9 percent).

In the first quarter of 2013, construction activity got off to a slow start due to harsh weather conditions in the northern hemisphere and uncertainties across European markets. This squeezed Group revenue by 6 percent relative to the previous year. The Group rapidly made up for this downturn, reporting a 5-percent rise in revenue relative to the previous year at the close of the first six months of 2013. Revenue for the first nine months of 2013 amounted to EUR 862.4 million. This corresponds to a rise of 6 percent relative to the previous year (9M 2012: EUR 812.6 million) and is also a new 9M record for the Group. 

The results of the first quarter impacted profit for the first nine months of the year. EBITDA rose slightly to EUR 110.9 million (9M 2012: EUR 110.3 million), resulting in an EBITDA margin of 12.9 percent (9M 2012: 13.6 percent). EBIT came to EUR 66.9 million (9M 2012: EUR 69.3 million) and the EBIT margin to 7.8 percent (9M 2012: 8.5 percent). 

The company’s financial situation remains strong. Net financial debt amounted to EUR 214 million, which is lower than the figure posted for the first half of 2013 (Q2 2013: EUR 255 million). At 23 percent, gearing remains below the industry average. Due to a drop in investments over 2013, positive free cash flow of EUR 22 million was generated in the first nine months of 2013.

"We expect current positive business trends to continue into the coming weeks. Since currency trends dampened our revenue in the third quarter, however, we remain uncertain as to how further fluctuations in Q4 will impact the Group. That said, we still expect to achieve our forecast for the current year," explains Peksaglam. The Group still expects revenue for 2013 to rise to around EUR 1.2 billion (2012: EUR 1,091 million) and the EBITDA margin to exceed 13.0 percent (2012: 13.0 percent).

Key emerging markets such as China, India, Mexico, Turkey and Russia are opening up new market opportunities. Wacker Neuson aims to capitalize on this growth potential and is increasing its efforts to distribute products and service tailored to local market needs. The core markets of Central Europe and North America also offer further opportunities for growth. 

The company will issue its outlook for fiscal 2014 in the first quarter of 2014.