Wacker Neuson SE: Wacker Neuson improves earnings in Q3 2016 despite challenging environment
DGAP-News: Wacker Neuson SE / Key word(s): Quarter Results/9-month figures
Wacker Neuson improves earnings in Q3 2016 despite challenging environment
(Munich, November 10, 2016) Leading international light and compact equipment manufacturer, the Wacker Neuson Group, saw revenue and earnings for the third quarter of 2016 increase relative to the previous year. Viewed over a nine-month period, revenue remained at the prior-year level, balancing out the drop in earnings experienced during the first half of the year only partly.
Trends during the third quarter of 2016
Revenue in the core market of Europe increased by 9.0 percent in the third quarter of the year. This was primarily driven by stable demand from the construction sector in German-speaking countries as well as in France, Denmark, Sweden and the Benelux countries. In contrast, revenue in the Americas decreased by 15 percent. In North America, demand for new equipment is being dampened by high inventory levels among dealers and rental chains plus large volumes of used equipment circulating on the market at low prices. Despite growth in China, the Group experienced falling demand in Australia and New Zealand. Revenue decreased by 23 percent in the Asia-Pacific region.
Earnings before interest and tax (EBIT) for the third quarter of 2016 increased 25 percent to EUR 19.3 million (Q3/15: EUR 15.5 million). The EBIT margin rose to 6.1 percent (Q3/15: 5.0 percent). At EUR 12 million, profit for the period was higher than in the previous year (Q3/15: EUR 8.5 million). Earnings per share rose 42 percent to EUR 0.17 (Q3/15: EUR 0.12). Here it should be noted that revenue and earnings for the prior-year period were quite low by comparison. Weak demand in the agricultural sector together with the oil and gas crisis plus unfavorable currency effects negatively impacted results in Q3 2015.
Trends during the first nine months of 2016
Despite economic headwinds, the Group remains committed to its strategic direction. "2016 is undoubtedly a year of transition for the Group, during which we have optimized processes and structures and also laid the foundation for future growth," explains CEO Cem Peksaglam. "For example, we continued to expand our international footprint by establishing new production sites in Brazil and, in future, also China. We consolidated the different spare parts services at our compact equipment production facilities in Europe to create a central warehouse in Nuremberg and also merged our R&D center for light equipment from Munich with our production site in Reichertshofen. In addition to this, we launched our eCommerce platform. And at this year's bauma fair in Munich, the world's largest construction industry tradeshow, we again sent a strong signal to the industry with new models in our zero-emission product line. We are strengthening our organizational and execution capabilities so we can more effectively master growing global challenges over the coming years," adds Peksaglam.
Improved cash flow
Revenue and earnings at lower end of forecast
The full quarterly report is available online at http://wackerneusongroup.com/en/investor-relations/financial-reports-presentations/
Table: Revenue and earnings
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The Wacker Neuson Group is an international family of companies and a leading manufacturer of light and compact equipment with over 50 affiliates and 140 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 2015, the Group achieved revenue of EUR 1.38 billion, employing over 4,600 people worldwide.
|Company:||Wacker Neuson SE|
|Phone:||+49 - (0)89 - 354 02 - 0|
|Fax:||+49 - (0)89 - 354 02 - 390|
|Listed:||Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange|
|End of News||DGAP News Service|