Double-digit revenue growth in Q1 – confirmation of forecast for 2012Munich, 10-May-2012
Strong start to the year for Wacker Neuson
Business development during the first quarter of 2012 was very positive across the Wacker Neuson Group. At EUR 274.0 million, the Group increased revenue by 29.3 percent relative to the same quarter last year (previous year: EUR 211.8 million). Revenue was also up on the high figure reported for Q4 2011 (EUR 264.0 million). In fact, Q1 2012 produced the Group’s highest revenue figure ever. “The compact equipment segment and the Americas region were our two strongest growth drivers, reporting revenue gains of 51 percent and 34 percent respectively relative to the previous year’s quarter,” explains Cem Peksaglam, Wacker Neuson CEO. “Our expansion strategies are gaining traction. Despite general economic uncertainty in individual markets, they will continue to secure our success over the coming year.” Revenue generated by agricultural equipment was up 41 percent on the previous year. Demand for light equipment – utilities products in particular – also rose during the first quarter of 2012, fueling a 20-percent rise in revenue in this segment.
Dynamic growth in core markets of Europe and the Americas
Wacker Neuson supplies a broad product and service portfolio to customers across the globe. Europe continues to account for the lion’s share of Group revenue at 70 percent. “The strong 29-percent increase in Group revenue in Europe for the first three months of 2012 bears testament to the competitiveness of our innovative product portfolio and the efficiency of our organizational structures,” outlines Peksaglam. Growth hotspots beyond German- speaking countries were concentrated in France, Denmark, Norway and Poland as well as in South Africa and Russia – both of which are included in the Europe segment. At 34 percent, growth in the Americas region was slightly more pronounced than in Europe. The company’s performance in the US was bolstered by re-fleeting on the part of the rental channel and by its success in further expanding its presence in other target markets such as the energy and industrial sectors. In Q1 2012, the Americas region thus accounted for 26 percent of total revenue.
Increase in profitability
Earnings grew faster than revenue during the first three months of the year. Profit before interest, tax, depreciation and amortization (EBITDA) rose 49.6 percent to EUR 38.8 million. This corresponds to an EBITDA margin of 14.2 percent (prior-year quarter: EUR 25.9 million; EBITDA margin: 12.2 percent). Profit before interest and tax (EBIT) increased to EUR 26.3 million, while the EBIT margin climbed to 9.6 percent (previous year: EUR 14.9 million; 7.1 percent). At EUR 17.1 million, profit for the period was almost double the prior-year figure of EUR 9.0 million.
Strategies for further profitable growth
To meet rising demand for its products, Wacker Neuson has invested in production capacity for compact equipment. The company recently completed the new production facility in Hörsching, near the city of Linz, in Austria. “Construction work lasted just 11 months from the silver-spade ceremony in June 2011. We will be starting production here on May 10, 2012,” confirms Peksaglam.
Asia-Pacific is an important growth market for Wacker Neuson. Demand for high-quality products is rising steadily in this region. “We intend to introduce light equipment products tailored to market needs in Asia, thus bringing our high-quality portfolio to an even broader user base also in this region,” continues Peksaglam. Wacker Neuson aims to strengthen its presence in regions where it sees strong growth potential. These include emerging markets, particularly in South America, Eastern Europe and Asia.
Confirmation of forecast
Wacker Neuson has confirmed its optimistic outlook for 2012, bolstered by continued positive trends in its core markets of Central Europe and the Americas. However, the Group does not expect growth rates for upcoming quarters to be as dynamic as that reported for the first three months of 2012 (+29 percent). The Executive Board reaffirms its forecast for fiscal 2012 as a whole, expecting Group revenue to amount to around EUR 1.1 billion (a plus of 11 percent relative to the previous year) and the EBITDA margin to reach at least 15 percent.
Key figures: Wacker Neuson Group
|in EUR million||Q1 2012||Q1 2011||Difference|
|EBITDA margin as a %||14,2||12,2||+2.0PP|
|EBIT margin as a %||9,6||7,1||+2.5PP|
|Profit for the period||17,1||9||+90.5%|
|Earnings per share in EUR||0,24||0,13||+84.6%|
Your contact partner:
Wacker Neuson SE
Katrin Yvonne Neuffer
Head of Corporate Communication/ Investor Relations
80809 Munich, Germany
About Wacker Neuson
The Wacker Neuson Group is a leading manufacturer of light and compact equipment with over 40 affiliates and more than 140 sales and service stations across the globe. Manufacturing activities are distributed across three sites in Germany, one in Austria, a components manufacturing plant in Serbia, two sites in the US and one in the Philippines. Products manufactured by the company are branded Wacker Neuson. In Europe, the Group also distributes compact equipment under the brand names Kramer Allrad and Weidemann (agricultural machinery). With over 300 product categories and a global spare parts service, Wacker Neuson is the partner of choice among professional users in a wide range of industries including the construction, gardening, landscaping and agriculture sectors, as well as among municipal bodies and companies in the industrial, recycling and energy sectors.