Wacker Neuson SE: Wacker Neuson Group confident for 2016 - despite a difficult start to the year
DGAP-News: Wacker Neuson SE / Key word(s): Quarterly / Interim Statement
Wacker Neuson Group confident for 2016 - despite a difficult start to the year
(Munich, May 12, 2016) During the first quarter of 2016, international light and compact equipment manufacturer Wacker Neuson continued to feel the impact of difficult conditions across many of its markets, in particular in the Americas region. Although the Group managed to maintain revenue at almost the same level as the record-breaking prior-year quarter, it reported lower profit figures for the period. The world's largest construction equipment trade show, bauma, which was held in Munich in April, proved a great success for the Group. Company management has confirmed its forecast for fiscal 2016.
Revenue at almost the same record-breaking level as the previous year
Key markets remained in a state of crisis, as Cem Peksaglam, CEO of Wacker Neuson SE, explains: "In North America, the ongoing slump in demand in the raw materials and energy sectors negatively impacted our business, particularly in the worksite technology field. South America, and Brazil in particular, continues to be hit by political and economic uncertainties and shows no signs of picking up. By contrast, demand was high in the construction sector in central and northern Europe, and southern European countries improved on the previous year's performance. However, as expected, trade in compact equipment for the agricultural sector remained below the prior-year level. This is due to extremely low prices for foodstuffs, above all milk."
At 72 percent, Europe accounts for a very large share of Group revenue. Revenue for this region was 2 percent down on the previous year. Here, the Group was able to almost fully compensate for the downturn it experienced in demand for agricultural equipment. Revenue for the first quarter in the Americas region fell 15 percent, primarily due to the crisis in the oil and gas sector. Delays in the production of compact equipment in the US further impacted revenue for this region. In addition, the dollar's relatively strong rating had a dampening effect on the export of products manufactured at the Group's North American plants.
By contrast, the Group reported strong growth in the Asia-Pacific region, where revenue almost doubled. "Our business in Asia developed very positively, even allowing for the favorable effect of one-off items on first-quarter revenue growth and we expect these to balance out over the course of the year. Whereas demand for large machines is contracting overall in China, the market for our compact machinery is on a clear growth path," continues Peksaglam. The Australian economy, which is highly dependent on raw material prices, continued to suffer from the crisis in the mining industry. Overall, the whole region increased its share of total Group revenue by 2.7 percentage points relative to the previous year to reach 5.5 percent.
Trends in the business segments
Changes in the regional and product mix had a negative impact on profit
Working capital lowered
bauma 2016 a resounding success for the Group
Growth forecast for 2016 confirmed
The Group still expects 2016 revenue of between EUR 1.40 and 1.45 billion, which corresponds to an increase of between 2 and 5 percent relative to the previous year. The EBIT margin should still range between 7.0 and 8.0 percent (2015: 7.5 percent). The Group has earmarked around EUR 100 million in total for investments for fiscal 2016 (2015: EUR 118 million). The Executive Board and the Supervisory Board will propose a dividend in the amount of EUR 0.50 per share at the upcoming Annual General Meeting to be held in Munich on May 31, 2016 (2015: EUR 0.50).
The quarterly 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|
|End of News||DGAP News Service|