Wacker Neuson SE: Wacker Neuson Group maintains course despite difficult market conditions
DGAP-News: Wacker Neuson SE / Key word(s): 9-month figures/Forecast
Wacker Neuson Group maintains course despite difficult market conditions
(Munich, November 12, 2015) Global light and compact equipment manufacturer the Wacker Neuson Group has reported revenue in excess of EUR 1 billion for the first nine months of 2015, an increase relative to the same period last year and a record high. In light of the marked downturn in key markets in the third quarter, the company revised its forecast for 2015 downwards. However, it still expects to achieve record revenue levels in 2015.
Revenue growth over first nine months of 2015, slowdown in the third quarter
Demand for light equipment in the raw material and energy sectors declined at an unexpectedly sharp rate in the third quarter. "Raw material prices are extremely low at present, making it almost impossible for companies to extract oil and gas profitably in North America. This has brought the industry more or less to a standstill. Difficult market conditions in South America compounded the situation here. In addition, declining demand in the European agricultural equipment sector together with disappointing levels of demand in markets such as France, Russia and Australia had an unexpectedly strong impact on our business," continues Peksaglam. As a result, Group revenue for Q3 2015 was 1.6 percent lower than the prior-year figure at EUR 311.0 million (Q3 2014: EUR 316.2 million). At EUR 107.2 million, revenue from the light equipment segment increased 1.2 percent compared with the previous year. When adjusted to discount currency effects, however, this figure was below last year's figure. Revenue from the compact equipment segment amounted to EUR 136.4 million, which is a decrease of 5.4 percent. Revenue for the services segment, which includes the Group's spare parts business, increased 4.3 percent relative to the prior-year quarter.
The industries in which the Wacker Neuson Group distributes its products and services can be volatile. The fall in revenue in the third quarter was primarily influenced by external factors and had a negative impact on cost ratios. Profit before interest and tax (EBIT) for the third quarter fell 61.3 percent to EUR 15.5 million (Q3 2014: EUR 40.1 million). This corresponds to an EBIT margin of 5.0 percent (Q3 2014: 12.7 percent). It should be noted, however, that the prior-year quarter was an unusually strong period for revenue and earnings. Major orders, an advantageous regional and product mix and clearly favorable currency gains positively influenced the Group's performance here. In contrast, currency gains declined markedly in the third quarter of 2015. "The strong US dollar made exports from our two production sites in the US more expensive. This had a negative effect on our profit levels. Profitability in South America, especially in Brazil, developed unfavorably under the pressure of the escalating local crises. The sharp depreciation in local currencies in recent months had a clear impact on revenue and earnings," adds Peksaglam.
EBIT for the first nine months of the year declined 21.5 percent to EUR 81.2 million (9M 2014: EUR 103.5 million). The EBIT margin amounted to 8.0 percent (9M 2014: 11.1 percent).
Focus on medium-term growth
Annual forecast for 2015
The company plans to announce its forecast for the coming year in March 2016 when it publishes its results for 2015.
Table: Revenue and earnings
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About the Wacker Neuson Group
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|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|