Munich-based equipment manufacturer Wacker Neuson reports an increase in Group revenue and profitability in 2013. This has been achieved in spite of tough trading conditions and having met its targets for 2013, the firm aims to remain on track in 2014. The company achieved €1.16 billion in revenue and says it managed to boost market penetration of light and compact equipment in its core European and US markets. It also developed specific new markets. Group revenue rose 6% to €1.16 billion, compared with nea
Wacker Neuson’s headquarters is in Munich
Munich-based equipment manufacturer 1651 Wacker Neuson reports an increase in Group revenue and profitability in 2013. This has been achieved in spite of tough trading conditions and having met its targets for 2013, the firm aims to remain on track in 2014. The company achieved €1.16 billion in revenue and says it managed to boost market penetration of light and compact equipment in its core European and US markets. It also developed specific new markets. Group revenue rose 6% to €1.16 billion, compared with nearly €1.1 billion for 2012. The figures were dampened by currency fluctuations. Adjusted to discount these effects, revenue would have risen 8%. “We were able to further expand our market position, both in German speaking countries and abroad, even managing to report growth in partly declining markets. This confirms that our strategy is yielding the right results,” said Cem Peksaglam, CEO of Wacker Neuson SE.
This growth was powered by all business segments. The Americas experienced the largest rise in revenue, with an increase of 8% on the previous year (adjusted to discount currency fluctuations: 12%). The Group’s largest market, Europe, also recorded an increase in revenue, with figures 6% higher than the previous year. Revenue in the light equipment segment rose by 2% compared with the previous year (adjusted to discount currency fluctuations: 6%), while the compact equipment segment grew by 12% and the services segment (including repair and replacement) by 4%. The first quarter of 2013 got off to a weak start due to harsh weather conditions, which had a dampening effect on demand. However, the Group says it saw a significant rise in both revenue and profit relative to the previous year for each of the subsequent quarters.
Profit before interest and tax increased 12% to €94.7 million. The Group’s net profit for the year amounted to €61.2 million compared with €54.1 million in 2012. In 2013, cash flow from operating activities rose to €132.6 million from €13.6 million in 2012.
Infrastructure expansion and improvement projects outside of Europe offer business opportunities for Wacker Neuson. “Our long-term aim is to increase the revenue share of markets beyond Europe, which currently account for 29% of total revenue. We would like to see this figure rise to around 50 percent. Emerging markets promise great potential at the moment they account for around one eighth of our revenue,” Peksaglam said.
Wacker Neuson is already moving in this direction, as proven by developments in its compact equipment segment. “Our strategy to extend our existing compact sales platform beyond Europe to reach international markets is already paying dividends. Here we achieved compact revenue growth outside Europe of 40% in 2013,” Peksaglam continues. The Group sees particular potential in emerging markets in South America and South-East Asia, as well as in China, Russia and Turkey.
Further revenue growth is expected in 2014. Peksaglam said that if the positive trends recorded in the first few weeks and months continue throughout the year, the firm can expect revenue to reach between €1.25 and €1.3 billion.
This growth was powered by all business segments. The Americas experienced the largest rise in revenue, with an increase of 8% on the previous year (adjusted to discount currency fluctuations: 12%). The Group’s largest market, Europe, also recorded an increase in revenue, with figures 6% higher than the previous year. Revenue in the light equipment segment rose by 2% compared with the previous year (adjusted to discount currency fluctuations: 6%), while the compact equipment segment grew by 12% and the services segment (including repair and replacement) by 4%. The first quarter of 2013 got off to a weak start due to harsh weather conditions, which had a dampening effect on demand. However, the Group says it saw a significant rise in both revenue and profit relative to the previous year for each of the subsequent quarters.
Profit before interest and tax increased 12% to €94.7 million. The Group’s net profit for the year amounted to €61.2 million compared with €54.1 million in 2012. In 2013, cash flow from operating activities rose to €132.6 million from €13.6 million in 2012.
Infrastructure expansion and improvement projects outside of Europe offer business opportunities for Wacker Neuson. “Our long-term aim is to increase the revenue share of markets beyond Europe, which currently account for 29% of total revenue. We would like to see this figure rise to around 50 percent. Emerging markets promise great potential at the moment they account for around one eighth of our revenue,” Peksaglam said.
Wacker Neuson is already moving in this direction, as proven by developments in its compact equipment segment. “Our strategy to extend our existing compact sales platform beyond Europe to reach international markets is already paying dividends. Here we achieved compact revenue growth outside Europe of 40% in 2013,” Peksaglam continues. The Group sees particular potential in emerging markets in South America and South-East Asia, as well as in China, Russia and Turkey.
Further revenue growth is expected in 2014. Peksaglam said that if the positive trends recorded in the first few weeks and months continue throughout the year, the firm can expect revenue to reach between €1.25 and €1.3 billion.
