Wacker Neuson Reports 2018 First Half Revenues at Record High

A high level of investment activity among rental chains in North America and strong sales of compact equipment had a positive effect on business.

Wacker Neuson Group Hqm Munich
9538ec0b

The Wacker Neuson Group reported a marked rise in revenue and earnings during the first six months of 2018. Revenue for the first half of 2018 rose 8 percent to a new record high of EUR 825 million (H1/17: EUR 764 million). Adjusted for currency effects, this corresponds to an increase of 12 percent. Revenue growth was driven primarily by continued high levels of demand in the construction market and strong performance in the European agricultural sector. Bottlenecks among some suppliers prevented machines from being completed for customer orders and this had a dampening effect. Furthermore, unfavorable currency developments, in particular the US dollar’s weakness against the euro, resulted in negative translation effects.

Growth across all regions

In Europe, which is the Group’s largest sales market, revenue for the first half of 2018 rose 8 percent to EUR 599 million (H1/17: EUR 556 million). This region’s share of Group revenue remained unchanged at 73 percent. “Our strong performance in this region was fueled by a buoyant construction market, positive development of our Kramer and Weidemann brands in the agricultural sector and growth in our services segment, which includes our maintenance and spare parts business,” explains Martin Lehner, CEO of Wacker Neuson SE.

Revenue for the Americas region rose 9 percent to EUR 202 million (H1/17: EUR 185 million). The weak US dollar had a particularly strong impact in this region. When adjusted for currency effects, revenue rose 21 percent. A high level of investment activity among rental chains in North America and strong sales of compact equipment had a positive effect on business. “Our skid steer loaders manufactured in the US are key products in our compact equipment portfolio, helping us to win more market shares in the region with other products such as excavators and dumpers,” adds Lehner.

Revenue in Asia-Pacific rose 4 percent to EUR 24 million (H1/17: EUR 23 million). The strong euro also squeezed growth figures here. Adjusted for currency effects, revenue rose 11 percent. 

Significant rise in profitability

Profit before interest and tax (EBIT) grew by a substantial 28 percent to reach EUR 78 million in the first half year (H1/17: EUR 61 million). This corresponds to an EBIT margin of 9.5 percent (H1/17: 8.0 percent). The rise in revenue coupled with strict cost control measures and improvements to internal processes had a positive impact here. Increased material prices had a dampening effect, as did material bottlenecks among suppliers, which disrupted workflows at production facilities. Productivity was also affected by ongoing restructuring initiatives across US production plants and the start of production at the new factory in Pinghu, China. 

Click here for the full report...

Latest