Wacker Neuson Group revises its forecast
Aug. 3rd. 2016, 20:37 h
Wacker Neuson Group revenue for the second quarter of 2016 amounted to EUR 381.4 million and thus almost matched the record figure reported for the previous year (Q2 2015: EUR 382.1 million). Profit before interest and tax (EBIT) remained almost unchanged from the previous year’s level at EUR 33.4 million (Q2 2015: EUR 34.0 million). The EBIT margin was 8.8 percent (Q2 2015: 8.9 percent).
In the first half of the year, Group revenue came to EUR 697.8 million (H1 2015: EUR 706.4 million) and was thus 1.2 percent lower than the previous year (H1 2015: EUR 706.4 million) – a development attributable to the weak first quarter of 2016. Due to the drop in Q1 earnings, EBIT for the first half-year decreased 23 percent relative to the previous year to reach EUR 50.7 million. The EBIT margin was 7.3 percent (H1 2015: EUR 65.7 million; 9.3 percent).
However, preliminary figures for July show that the Wacker Neuson Group experienced a weak start to the second half of the year. High-risk markets such as Russia, South Africa, Turkey and, most recently, the UK are currently generating increasing levels of uncertainty in Europe. The European agricultural market was also showing no signs of long-term recovery at the start of the second half of the year. At the same time, market weaknesses in North America are proving to be more persistent than expected and many emerging markets are still not showing signs of recovery. The company therefore expects revenue and profit for the second half of the year to develop below previous expectations.
In light of these developments, the Executive Board reduced its forecast for the year as a whole. It now expects revenue for fiscal 2016 to range between EUR 1,375 and EUR 1,425 million (previously: between EUR 1,400 and EUR 1,450 million) with an EBIT margin of between 6.5 and 7.5 percent (previously: between 7.0 and 8.0 percent).
Explanation on KPIs applied are described in the annual report of Wacker Neuson Group 2015 on page 158 (Website: wackerneusongroup.com/en/investor-relations/financial-reports-presentations/2015/)
Additional information on Wacker Neuson SE shares:
Admission: Regulated market / Prime Standard; Frankfurt Stock Exchange
Company headquarters: Germany
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Wacker Neuson SE
Katrin Yvonne Neuffer
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80809 Munich, Germany