Wacker Neuson SE: Covid-19 pandemic continues to have a significant impact in Q3
DGAP-News: Wacker Neuson SE / Key word(s): 9 Month figures
Wacker Neuson SE:Covid-19 pandemic continues to have a significant impact in Q3
Munich, November 5, 2020 - Leading light and compact equipment manufacturer the Wacker Neuson Group continued to clearly feel the effects of the Covid-19 pandemic in the third quarter of 2020. The Group reported revenue of EUR 390.8 million, which is a decrease of 16.5 percent relative to the previous year (Q3/19: EUR 468.2 million). Revenue for the first nine months of the year amounted to EUR 1,187.5 million, which is a drop of 16.4 percent (9M/19: EUR 1,420.8 million). "We again experienced a significant decline in revenue in the third quarter related to the coronavirus pandemic, albeit less pronounced than in the second quarter. However, we are also seeing positive changes in our industry that have been triggered or accelerated by the shift in circumstances. Through the crisis, our customers have become much more open to the possibilities of digitalization and electromobility in particular," explains Martin Lehner, CEO of the Wacker Neuson Group.
Regional trends in Q3
Revenue in the Americas, which continues to be hit hard by the Covid-19 pandemic, decreased 43.1 percent in Q3 (Q3/20: EUR 65.9 million; Q3/19: EUR 115.9 million). Adjusted for currency effects, this corresponds to a drop of 38.8 percent. Willingness to invest remained extremely low among dealers, key accounts and rental chains in the region. Although the US production plant had remained largely closed since April, the first production lines started to gradually ramp up towards the end of the third quarter.
In the third quarter, Wacker Neuson experienced slight growth in the Asia-Pacific region for the first time since the start of the year. The Group reported a significant double-digit revenue upturn in China as well as gains in Australia despite the challenging conditions there. In contrast, revenue in Southeast Asia halved due to the severe impact of the coronavirus crisis. Revenue for Asia-Pacific as a whole amounted to EUR 14.9 million (Q3/19: EUR 14.7 million).
Profitability impacted by downturn in sales volumes
Viewed over the first nine months of the year, EBIT amounted to EUR 73.2 million, which corresponds to a margin of 6.2 percent (9M/19: EUR 127.4 million; 9.0 percent). This includes a goodwill impairment of around EUR 9 million attributed to the US subgroup, which was reported in the second quarter.
Further reduction of net working capital, Q3 free cash flow again in high double digits
Free cash flow for the third quarter amounted to EUR 86.5 million. In the previous year, a sharp rise in net working capital resulted in negative free cash flow both for Q3 and for the nine-month period (Q3/19: EUR -15.5 million; 9M/19: EUR -200.0 million). Free cash flow for the first nine months of 2020 amounted to EUR 179.4 million. As a result, net financial debt declined markedly again, amounting to EUR 276.1 million at the close of the third quarter (September 30, 2019: EUR 513.1 million). Gearing was reported at 22.2 percent (September 30, 2019: 42.2 percent).
Still not feasible to quantify guidance for fiscal 2020 as a whole
Group expects to achieve Strategy 2022 goals one to two years later than planned
Key indicators for the Wacker Neuson Group
The Wacker Neuson Group's report for Q3 2020 is available at the following link: https://wackerneusongroup.com/en/investor-relations/financial-reports-presentations/2020
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About the Wacker Neuson Group:
The Wacker Neuson Group is an international network of companies, employing around 5,500 people worldwide. In fiscal 2019, the Group achieved revenue of EUR 1.9 billion. As a leading manufacturer of light and compact equipment, the Group offers its customers a broad portfolio of products, a wide range of services and an efficient spare parts service. Wacker Neuson Group is the partner of choice among professional users in construction, gardening, landscaping and agriculture, as well as among municipal bodies and companies in industries such as recycling and rail transport. The product brands Wacker Neuson, Kramer and Weidemann belong to the Group. Wacker Neuson SE shares are listed on the regulated Prime Standard segment of the Frankfurt Stock Exchange (ISIN: DE000WACK012, WKN: WACK01) and are member of the SDAX.
|Company:||Wacker Neuson SE|
|Phone:||+49 - (0)89 - 354 02 - 0|
|Fax:||+49 (0)89 354 02 - 298|
|Listed:||Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange|
|EQS News ID:||1145536|
|End of News||DGAP News Service|