The Wacker Neuson Group publishes preliminary figures for Q3/2019 and revises its forecast
The Wacker Neuson Group expects Q3 Group revenue of around EUR 467.2 million (Q3/18: EUR 415.8 million) and profit before interest and tax (EBIT) of approximately EUR 40.2 million (Q3/18: EUR 41.8 million) based on preliminary figures. This corresponds to an EBIT margin of 8.6 percent (Q3/18: 10.1 percent), which is significantly lower than the prior-year figure.
Weaker profitability in the third quarter is primarily attributable to a less favourable product and customer mix for new equipment sales and lower productivity levels at production plants. The latter is the result of cutbacks in production programs which proved to be more comprehensive than planned due to inventory reduction plans and an increasingly challenging market climate. Furthermore, expected improvements in profitability in the USA could not be realized in the planned period.
Against this backdrop, the Executive Board today decided to adjust its guidance for fiscal 2019. Full-year revenue is expected to come in at the upper end of the projected range of EUR 1,775 to EUR 1,850 million (previous guidance: upper half of the projected range of EUR 1,775 to EUR 1,850 million), while EBIT margin is now estimated at between 8.3 and 8.8 percent (previous guidance: between 9.5 and 10.2 percent). Net working capital expressed as a percentage of revenue is expected to be significantly higher than the prior-year figure (previous guidance: slightly higher than the prior-year figure).
The full Q3 report for 2019 will be published on November 7, 2019.
Explanations of the indicators used here can be found on pages 158 and 159 of the 2018 Wacker Neuson Group Annual Report. Profit before interest and tax for the previous year was adjusted retrospectively. Information on this is available on page 106 of the Annual Report.
Wacker Neuson SE
Head of Investor Relations
Additional information on Wacker Neuson SE shares:
Admission: Regulated market (Prime Standard); Frankfurt Stock Exchange
Company headquarters: Germany