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Strong Start to the Year for the Wacker Neuson Group

MUNICH/GERMANY, May 30, 2015 – The Wacker Neuson Group has reported a rise in revenue and profit for the first quarter of 2015. The Munich-based light and compact equipment manufacturer experienced its strongest growth in the Americas region, however failed to meet its targets for light equipment sales. The Group has confirmed its forecast for fiscal 2015.

Key figures in EUR million

Wacker Neuson key figures of Q1 2015 in EUR million.
| Table: Wacker Neuson

Revenue 11 percent higher than the previous year

2015 got off to a good start for the Group with revenue for the first quarter increasing 11 percent relative to the prior-year period to EUR 324.3 million (Q1 2014: EUR 291.6 million). This represents a record high for Q1 revenue for the Group. “We have continued to implement our strategies and they have proved effective even though – from a global perspective – markets are moving in different directions. Our strong market position, above all in Europe and North America, has enabled us to offset negative market developments in South America, Russia and Australia,” explains Cem Peksaglam, CEO of Wacker Neuson SE.

Revenue in Europe rose 7 percent compared with the previous year. This region accounts for 71 percent and thus the lion’s share of Group revenue. The Group saw its strongest revenue growth in the Americas, however, which posted a rise of 24 percent. Currency effects played a major role in this region, with revenue growing 5 percent when adjusted to discount currency fluctuations. Currency developments also impacted the Asia-Pacific region, where Q1 revenue was 20 percent higher than in the prior-year period (6 percent when adjusted for currency effects).

Strategy increasingly paying off

The compact equipment segment again proved to be a strong revenue driver in the first quarter of 2015. Segment revenue increased 18 percent on the previous year (16 percent when adjusted for currency effects). “Our strategy of harnessing and expanding our global sales network to proactively distribute our excavators, wheel loaders, telescopic handlers, dumpers and skid steer loaders in specific markets is increasingly paying dividends. At the same time, we are also benefiting from our targeted efforts to diversify into different markets,” explains Peksaglam. Revenue from light equipment rose 6 percent and was thus below Group expectations. The late start to the construction season in the northern hemisphere was one of the factors that affected performance here.

The Wacker Neuson headquarters in Munich

The Wacker Neuson group's performance
partly benefited from the currency
fluctuations. | photo: Wacker Neuson

 

Clear rise in profit

At EUR 31.7 million, profit before interest and tax (EBIT) for the first quarter of 2015 was 43 percent higher than the previous year. This is a record high for first-quarter profit for the Group. The EBIT margin increased to 9.8 percent (Q1 2014: EUR 22.1 million; 7.6 percent). Profit for the period amounted to EUR 21.3 million (Q1 2014: EUR 14.3 million). This pushed up earnings per share by 49 percent to EUR 0.30 (Q1 2014: EUR 0.20).

Growth forecast for 2015 confirmed

The Group is optimistic about the coming months and the construction season will pick up during this period. “The growth strategies that we have initiated are increasingly taking effect. Despite overall economic uncertainties in individual markets and regions, these measures will continue to secure our success for the rest of the year,” confirms Peksaglam. “We stand by our forecast of overall revenue for the year of between EUR 1.40 and 1.45 billion. This would correspond to growth of between 9 and 13 percent relative to the previous year.” The EBIT margin is expected to come in at between 9.5 and 10.5 percent (2014: 10.6 percent). For fiscal 2015, Wacker Neuson has earmarked around EUR 95 million in total for investments (2014: EUR 90 million).
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