Wacker Neuson SE: Wacker Neuson Group: Market squeeze in third quarter of 2015
DGAP-News: Wacker Neuson SE / Key word(s): 9-month figures/Preliminary Results
Wacker Neuson Group: Market squeeze in third quarter of 2015
(Munich, October 21, 2015) Global manufacturer of light and compact equipment, the Wacker Neuson Group, reported a new record revenue of over EUR 1 billion for the first nine months of 2015. The market experienced a sharp, unexpected squeeze, however, in Q3. The company revised its forecast for the year downwards as a result of this development; however, it still expects to report record revenue for 2015.
High levels of volatility in 2015
Varied performance across segments
Revenue for the compact equipment segment increased by 14.8 percent relative to the previous year (+13.3 percent when adjusted to discount currency effects). Revenue from light equipment increased by 3.6 percent (-5.3 percent when adjusted to discount currency effects). Revenue for the services segment, which includes the repair and spare parts business, increased 4.3 percent relative to the previous year. When adjusted to discount currency effects, revenue remained at the same level as the prior year.
Downturn in Q3 2015
The fall in revenue in the third quarter of 2015 had a negative impact on profit margins cost ratio. EBIT for the third quarter decreased by 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). In the third quarter, the Group implemented appropriate measures to adapt its cost structures. These will show initial results in the fourth quarter. The equivalent quarter in 2014 was a record quarter for the Group in terms of revenue and profit. In addition, profit in this prior-year period was tangibly bolstered by a more favorable regional and product mix plus beneficial exchange rate developments.
Growth forecast for 2015 revised
The company expects Group revenue to amount to between EUR 1.35 and 1.40 billion (2014: EUR 1.28 billion) and the EBIT margin to range between 7.0 and 8.0 percent (2014: 10.6 percent). The Group still expects free cash flow for the year to be positive.
The company will be publishing its nine-month report on November 12, 2015. It plans to issue its forecast for the coming year in March 2016 when it publishes its results for 2015.
Table: Revenue and profit (preliminary figures)
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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|