Wacker Neuson SE: Fiscal 2015 was another year of revenue growth for Wacker Neuson
DGAP-News: Wacker Neuson SE / Key word(s): Final Results/Forecast
Fiscal 2015 was another year of revenue growth for Wacker Neuson
(Munich, March 15, 2016) The Munich-based international light and compact construction equipment manufacturer again reported growth in revenue for fiscal 2015, despite difficult market conditions. The company's profit levels, however, were affected by crises in key industries and regions. The company has issued a cautious revenue and earnings forecast for 2016.
Business performance in 2015 mirrored the high levels of volatility that shaped various industries. During the first half of the year, revenue developed very positively, growing 14 percent relative to the previous year. However, the situation declined markedly in the second half of the year, with revenue just 0.7 percent higher than the prior-year level.
The continued slump in the raw materials industry negatively impacted key sales markets for the Group in Brazil, Chile, Russia, South Africa, Canada, the US and Australia. "The oil and gas industry is currently facing an existential crisis and many companies have already been forced to cease operations. This is an important sector for us in North America. The crisis has been largely triggered by the squeeze on oil prices, which dropped to a ten-year low, making it impossible for companies to cost-effectively extract raw materials in this region," explains Cem Peksaglam, CEO of Wacker Neuson SE.
The downturn in the agricultural equipment sector left its mark on the compact equipment segment. "During the first half of 2015, we were able to buck the trend and remain on a growth path. By the second half of the year, however, our agricultural business in Europe with wheel loaders, telescopic handlers and tele wheel loaders contracted sharply," continues Peksaglam. This was mainly due to the drop in prices for milk and other agricultural products, which are currently at a six-year low and, as a result, are dampening willingness to invest amongst agricultural landholders.
Nevertheless, the compact equipment segment again proved to be the main growth driver in 2015, with revenue increasing by 15 percent. Revenue from light equipment was one percent below the prior-year figure. When adjusted to discount currency effects, it actually contracted by 9 percent. In the services segment, which includes the service and spare parts business, revenue grew by 4 percent. Compact equipment accounted overall for around 50 percent of Group revenue, light equipment for 30 percent and the services segment for 20 percent.
At EUR 171.3 million, profit before interest, tax, depreciation and amortization (EBITDA) for the period under review fell by 12.7 percent relative to the previous year. The EBITDA margin was posted at 12.5 percent (2014: EUR 196.3 million; 15.3 percent). Profit for the period amounted to EUR 66.2 million (2014: EUR 91.5 million). Net earnings per share came to EUR 0.94 (2014: EUR 1.30).
The Group is focusing more than ever on strict cost controls, targeted cost optimization programs and process efficiency gains. "In the medium term, we expect to achieve annual cost savings in the double-digit million range as a result of procurement synergies, centralized logistics processes, a strong focus on lean management and standardization across all areas of the business," highlights Peksaglam. "We will also be leveraging our aftermarket business to develop revenue and earnings potential," he adds.
Cautious outlook for 2016
The Group expects revenue for 2016 to amount to between EUR 1.40 and EUR 1.45 billion (which corresponds to revenue growth of 2 to 5 percent relative to the previous year). The EBIT margin is expected to lie within a range of 7 to 8 percent (same as the previous year). Furthermore, the Group has earmarked around EUR 100 million for investments (2015: EUR 118 million).
The company will be showcasing a wealth of new products and innovations for customers and business partners in Munich this April at bauma, the world's largest construction industry tradeshow. Highlights will include alternative drive technologies, including zero-emissions products such as the new electric track dumper from Wacker Neuson and the electric wheel loader from Kramer.
The Group aims to continue on its growth path by intensifying cross-selling activities across business segments, further expanding profitable lines of business and widening its international footprint.
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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|