Wacker Neuson expects EBIT margin to be below recent guidance based on preliminary figures
Based on preliminary and unaudited figures for fiscal 2019, the Wacker Neuson Group expects Group revenue to reach around EUR 1.9 billion, with an EBIT margin of approx. 8.0 percent. In the previously published guidance, the Group expected revenue to come in at the upper end of the range of EUR 1,775 to EUR 1,850 million; the EBIT margin was projected at between 8.3 and 8.8 percent.
Efforts to streamline inventory resulted in large volumes of new equipment being sold off and the impairment of raw materials in North America in particular. This had a dampening effect on profit. Earnings were further affected by the persistently unfavorable product mix.
In light of current developments, the Executive Board approved today the key provisions of a program aimed at reducing costs and increasing efficiency. The Executive Board expects these planned initiatives to yield gradual savings of up to 50 million euros relative to fiscal 2019 over the next two years.
The full financial results for fiscal 2019 will be published on March 16, 2020.
Explanations of the indicators used here can be found on page 158 of the 2018 Wacker Neuson Group Annual Report.
Wacker Neuson SE
Head of Investor Relations
80809 Munich, Germany
Additional information on Wacker Neuson SE shares:
Admission: Regulated market (Prime Standard); Frankfurt Stock Exchange
Company headquarters: Germany