Despite challenging market conditions, the Wacker Neuson Group reported record results in 2014 across most key performance indicators. Revenue increased 11 percent to a new record high of $1.38 billion (EUR 1.28 billion), which met the company's profit and revenue forecast. A vigorous economy and the expansion of Wacker Neuson's dealer network helped propel the company's growth in North America by 9 percent. European business grew by 12 percent while revenue in the Asia-Pacific region increased by 8 percent.
The compact equipment segment was the company's biggest growth driver with a 17 percent increase in revenue over 2013. “Broadening the reach of our compact equipment within Europe and beyond is paying dividends. We are gaining many new users in the agricultural and construction sectors. Companies in the gardening and landscaping sectors as well as municipal bodies and other industries are also investing in compact, powerful machines which increase the efficiency of their operations,” said Cem Peksaglam, CEO of Wacker Neuson SE. The light equipment segment reported 4 percent growth relative to the previous year, and revenue in the services segment – which includes service and spare parts – increased by 10 percent.
In an effort to grow the North American market even more, Wacker Neuson relocated production of skid-steer loaders from its Austrian plant to an existing plant near Milwaukee, Wis., at the end of 2014. “We want to grow fastest outside of Europe and have identified enormous potential here. Our long-term goal is to increase the revenue we generate outside of Europe from the current level of 29 percent to around 40 percent,” continues Peksaglam.
Wacker Neuson has plans to continue its expansion strategy and is optimistic for 2015 – despite challenging conditions in diverse markets such as Russia, Chile and Brazil. “The outlook for Central Europe and North America is promising. As long as 2015 does not bring any further economic, financial or currency-related crises, we expect to grow between 9 and 13 percent in revenue to amount between $1.5 billion and $1.55 billion (EUR 1.40 and 1.45 billion),” states Peksaglam. The Wacker Neuson Group has earmarked a total of around $102 million (EUR 95 million) for investments during the course of fiscal 2015, about $5 million (EUR 90 million) less than what the company invest in 2014.