Light and compact equipment maker Wacker Neuson Group, based in Munich, Germany, reported record revenue and earnings for the first half of 2015.
Revenue for the first six months of 2015 increased 14% relative to the same period 2014, reaching €706.4 million, a record high, the company said in a written statement.
“Our business grew significantly, despite negative market developments in many countries, especially outside of the US and Europe,” said Cem Peksaglam, chief executive of Wacker Neuson.
RSSLight and compact equipment maker 1651 Wacker Neuson Group, based in Munich, Germany, reported record revenue and earnings for the first half of 2015.
Revenue for the first six months of 2015 increased 14% relative to the same period 2014, reaching €706.4 million, a record high, the company said in a written statement.
“Our business grew significantly, despite negative market developments in many countries, especially outside of the US and Europe,” said Cem Peksaglam, chief executive of Wacker Neuson.
In Europe, revenue rose 11% compared with the previous year. The region accounts for the lion’s share of revenue at 72%.
The largest revenue increase was in the Americas, which reported a 22% rise. This was significantly affected by currency fluctuations, which also impacted the Asia-Pacific region. Revenue in Asia-Pacific for the first half of 2015 was 21% higher than the previous year. When adjusted to discount currency effects, the rise in revenue was 8% in that region.
The groups said that compact equipment was again the main growth driver in the first half of 2015. Revenue for this segment increased by 25% relative to the previous year.
Meanwhile, revenue from the light equipment segment rose 5%, falling short of expectations, the group said. “This was mainly attributable to difficult market dynamics in countries such as Canada, Brazil, Chile, China, Australia and Russia. Exchange rate effects had more of an impact on this segment as a large part of revenue from light equipment is generated outside of Europe. When adjusted to discount currency effects, revenue here was thus 6% lower than in the previous year.”
Revenue for the services segment, which covers repair and spare parts, increased 4% on the same period last year. After discounting currency effects, revenue remained level.
Profit before interest and tax (EBIT) for the first half of 2015 rose 4% relative to the prior year to reach a new record high of €65.7 million. The EBIT margin amounted to 9.3% (H1/14: €63.4 million; 10.2%). Profit for the period came to €45.2 million (H1/14: €42.5 million).
The compact equipment segment’s share of group revenue exceeded 51%, while the light equipment’s share fell to just under 30%. The services segment accounted for 19% of revenue.
Peksaglam said the group intensified its production, research and development, as well as sales activities in response to the strong rise in revenue. “We are strengthening our foundation for future success by making carefully managed investments in our international organisation.
“Our order books are full and we expect the promising conditions in established markets to have a positive impact on our business,” he said.
Revenue for the year is expected to range between €1.40 billion and €1.45 billion, which corresponds to a rise of between 9% and 13% on the previous year. The EBIT margin should still be on target, between 9.5% and 10.5% (2014: 10.6%).
Revenue for the first six months of 2015 increased 14% relative to the same period 2014, reaching €706.4 million, a record high, the company said in a written statement.
“Our business grew significantly, despite negative market developments in many countries, especially outside of the US and Europe,” said Cem Peksaglam, chief executive of Wacker Neuson.
In Europe, revenue rose 11% compared with the previous year. The region accounts for the lion’s share of revenue at 72%.
The largest revenue increase was in the Americas, which reported a 22% rise. This was significantly affected by currency fluctuations, which also impacted the Asia-Pacific region. Revenue in Asia-Pacific for the first half of 2015 was 21% higher than the previous year. When adjusted to discount currency effects, the rise in revenue was 8% in that region.
The groups said that compact equipment was again the main growth driver in the first half of 2015. Revenue for this segment increased by 25% relative to the previous year.
Meanwhile, revenue from the light equipment segment rose 5%, falling short of expectations, the group said. “This was mainly attributable to difficult market dynamics in countries such as Canada, Brazil, Chile, China, Australia and Russia. Exchange rate effects had more of an impact on this segment as a large part of revenue from light equipment is generated outside of Europe. When adjusted to discount currency effects, revenue here was thus 6% lower than in the previous year.”
Revenue for the services segment, which covers repair and spare parts, increased 4% on the same period last year. After discounting currency effects, revenue remained level.
Profit before interest and tax (EBIT) for the first half of 2015 rose 4% relative to the prior year to reach a new record high of €65.7 million. The EBIT margin amounted to 9.3% (H1/14: €63.4 million; 10.2%). Profit for the period came to €45.2 million (H1/14: €42.5 million).
The compact equipment segment’s share of group revenue exceeded 51%, while the light equipment’s share fell to just under 30%. The services segment accounted for 19% of revenue.
Peksaglam said the group intensified its production, research and development, as well as sales activities in response to the strong rise in revenue. “We are strengthening our foundation for future success by making carefully managed investments in our international organisation.
“Our order books are full and we expect the promising conditions in established markets to have a positive impact on our business,” he said.
Revenue for the year is expected to range between €1.40 billion and €1.45 billion, which corresponds to a rise of between 9% and 13% on the previous year. The EBIT margin should still be on target, between 9.5% and 10.5% (2014: 10.6%).
