Wacker Neuson reports strong performance

1651 Wacker Neuson reports a strong financial performance in the second quarter of 2013, despite tough prevailing economic conditions. This represents an improvement also from the first quarter of 2013 when economic performance was weak. The Wacker Neuson Group’s second quarter revenue increased by 15.8% over the previous year, reaching €329 million compared to €284.2 million. An increase in construction activity in April helped boost sales. “In Q2, our revenue rose 28 % on the prior-year quarter to a new record high for the company. Despite a significantly more intensive competitive landscape, we were able to successfully maintain and in some cases expand our position,” explained Cem Peksaglam, CEO of Wacker Neuson SE.

The light equipment segment reported a 12% Q2 revenue increase relative to the previous year. Revenue from compact equipment such as excavators, wheel loaders, dumpers and skid steer loaders rose by 19$, while the services segment reported a 14% rise in revenue.

Profit before interest, tax, depreciation and amortization (EBITDA) rose 20.4% in the second quarter of 2013 to €44.9 million, compared with €37.3 million for 2012. This corresponds to an EBITDA margin for the quarter of 13.6% compared with 13.1% in 2012. The EBIT margin was 8.9% compared with 8% in 2012. During the first six months of 2013, revenue rose 5% to €586.1 million compared with €558.1 million in 2012. Revenue in the first quarter was 6.2% lower than the prior-year figure due to delayed construction activity. The Group quickly compensated for the drop, however.

The weak first quarter pushed profit for the first half of the year below the prior-year figure. EBITDA amounted to €69.7 million compared to €76.1 million in 2012. This corresponds to an EBITDA margin of 11.9% compared with 13.6% in 2012. Profit before interest and tax (EBIT) totalled €40.4 million compared to €49.2 million in 2012, which brought the EBIT margin to 6.9% compared with 8.8% in 2012.

Looking ahead the firm says it has identified new market opportunities in South America, Eastern Europe, Africa and Asia. To capitalize on this growth potential, Wacker Neuson is increasingly distributing products and services tailored to regional requirements. Further growth opportunities for the Group exist in its core markets of Europe and North America. The company reported a double-digit rise in order intake at the close of the first half year 2013. The overall forecast for the year remains strong.

“Despite our strong second quarter, we will have to keep working hard to meet our revenue and profit goals for the year. As such, we will keep a close eye on spending and focus on our strengths in production and distribution. I am confident that we will once again achieve our goals in 2013,” said Peksaglam.