Wacker Neuson publishes preliminary figures for fiscal 2019; Executive Board approves program aimed at improving efficiency
- Double-digit revenue growth to around EUR 1.9 billion
- EBIT margin at approx. 8.0 percent following a weak fourth quarter
- Executive Board approves key provisions of program aimed at reducing costs and boosting efficiency
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. This will be implemented with immediate effect. In the course of cost reductions, the Executive Board aims to also implement organizational changes to strengthen and stabilize the Wacker Neuson Group?s profitability. The global program will impact all areas and functions in the Group.
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 Group will announce further details about the program once it has finalized the individual efficiency-enabling measures.
The Group has confirmed its medium-term growth and profit targets set out in Strategy 2022. In addition, the Group has initiated measures to reduce inventory levels to around EUR 500 million by the end of fiscal 2020. At the close of fiscal 2019, inventory totaled approx. EUR 600 million.
The full financial results for fiscal 2019 will be published on March 16, 2020.
Wacker Neuson SE
Head of Investor Relations
About Wacker Neuson Group
The Wacker Neuson Group is an international family of companies and a leading manufacturer of light and compact equipment with over 50 affiliates and 150 sales and service stations. The Group offers its customers a broad portfolio of products, a wide range of services and an efficient spare parts service. The product brands Wacker Neuson, Kramer and Weidemann belong to the Wacker Neuson Group. Wacker Neuson 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, energy and rail transport. In 2019, the Group achieved revenue of around EUR 1.9 billion, employing more than 6,000 people worldwide. Wacker Neuson SE shares are listed on the regulated Prime Standard segment of the Frankfurt Stock Exchange (ISIN: DE000WACK012, WKN: WACK01) and the SDAX index of the German stock exchange.