Wacker Neuson SE: Wacker Neuson cautious for H2 despite of a strong second quarter
DGAP-News: Wacker Neuson SE / Key word(s): Half Year Results/Quarter Results
Wacker Neuson cautious for H2 despite of a strong second quarter
(Munich, August 4, 2016) In the second quarter of 2016, leading international light and compact equipment manufacturer the Wacker Neuson Group almost equaled its record revenue from the prior-year quarter. In light of increased market uncertainties and volatility for H2, the Group revised its forecast for 2016.
Revenue in Q2 2016 almost matches previous year's record high
"We have every reason to be satisfied with our performance in the second quarter of 2016 in light of the ongoing crises in the agricultural and energy sectors in our home markets of North America and Europe, as well as increasing uncertainty in the UK, South Africa, Poland, Russia and Turkey, coupled with the difficult situation in South America and Australia," explains Cem Peksaglam, CEO of Wacker Neuson SE." The Group generates a large share of its revenue in Europe. Here, revenue for the second quarter rose 6 percent compared with the previous year. Revenue in the Americas and Asia-Pacific regions fell by 14 and 31 percent respectively compared with the previous year.
Earnings before interest and tax (EBIT) remained almost unchanged from the previous year at EUR 33.4 million (Q2 2015: EUR 34.0 million). The EBIT margin amounted to 8.8 percent (Q2 2015: 8.9 percent). Profitability was thus significantly higher than in the first quarter of 2016, when the EBIT margin amounted to 5.5 percent. Profitability was bolstered by the rise in revenue relative to the first quarter (+21 percent).
First quarter results impact half-year profit
Primarily due to the fall in earnings in the first quarter of 2016, EBIT decreased 23 percent in the first half relative to the previous year to reach EUR 50.7 million, which placed the EBIT margin at 7.3 percent (H1 2015: EUR 65.7 million; 9.3 percent). The crises in the energy and agricultural sectors in particular are having a negative impact on earnings, not least because they are causing a strong shift in Wacker Neuson's regional and product mix. Profit for the period came to EUR 33.8 million in the first half-year (H1 2015: EUR 45.2 million). This corresponds to earnings per share of EUR 0.48 (H1 2015: EUR 0.64).
Improved cash flow
Internationalization is a cornerstone of Group strategy
Forecasts for 2016 adjusted
In light of these developments, the Executive Board has lowered its forecast for the year as a whole. It now expects revenue to amount to between EUR 1,375 and EUR 1,425 million (previously: EUR 1,400 to 1,450 million) and the EBIT margin to move between 6.5 and 7.5 percent (previously: 7.0 and 8.0 percent). The Group has earmarked around EUR 100 million in total for investments throughout fiscal 2016 (2015: EUR 118 million).
The complete half-year report is available online at
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|