Wacker Neuson SE: Wacker Neuson makes a promising start to 2014

Wacker Neuson SE / Key word(s): Quarter Results/Forecast

13.05.2014 / 07:54

Wacker Neuson makes a promising start to 2014

(Munich, May 13, 2014) Munich-based compact and light equipment manufacturer Wacker Neuson reports further increases in revenue and profit for the first quarter of 2014. In Europe, an early start to the construction season and the continued economic upturn positively impacted customers' willingness to invest. In light of its performance, the Group confirms its forecast for 2014.

Revenue up 13 percent on previous year
Group revenue rose 13 percent on the same period last year to set a new Q1 record at EUR 291.6 million (Q1/13: EUR 257.1 million). The currencies of many emerging markets and the US dollar again lost ground against the euro in the first quarter of 2014. Discounting these adverse exchange rate effects, revenue grew 17 percent relative to the prior-year period. "Our business was bolstered by the steady upturn in the European construction industry, a more upbeat mood across the European agricultural sector coupled with a relatively mild winter and a general revival in the US construction industry. We were able to strengthen our position in almost all of our markets," says Cem Peksaglam, CEO of Wacker Neuson SE. Looking at the regional breakdown, Europe accounted for the lion's share of overall growth, with revenue up 20 percent compared with the first quarter of 2013. When exchange rate fluctuations are discounted, the Americas (+6 percent, in euro -2 percent) and Asia-Pacific (+5 percent, in euro -8 percent) regions also recorded revenue increases.

Earnings per share more than doubled
At EUR 36.2 million, profit before interest, tax, depreciation and amortization (EBITDA) rose 46 percent compared with the same period last year. The EBITDA margin thus increased to 12.4 percent (Q1/13: EUR 24.8 million; 9.7 percent). Profit before interest and tax (EBIT) effectively doubled to EUR 22.1 million (+99 percent), which corresponds to an EBIT margin of 7.6 percent (Q1/13: EUR 11.1 million; 4.3 percent). The Group's profit for the period amounted to EUR 14.3 million (Q1/13: EUR 6.4 million). At EUR 0.20, the earnings per share figure was 122 percent higher than in the same period last year (Q1/13: EUR 0.09). This significant improvement in earnings results from the Group's systematic implementation of its long-term strategy, synergy effects across the Group and measures introduced last year to increase process efficiencies and reduce costs. Another factor was the comparatively weak performance recorded in the first quarter of 2013.

Improvement in cash flow from operating activities
At EUR 18.9 million, cash flow from operating activities was positive in the first quarter this year (Q1/13: EUR -20.3 million). Free cash flow amounted to EUR -8.9 million (Q1/13: EUR
-39.3 million). The Group expects the full-year figure to be positive, however.

Group strategy continues to pay dividends
The compact equipment segment proved to be a strong revenue driver in the first quarter of 2014. Revenue was 21.0 percent higher than the previous year. The Group is thus increasingly seeing the dividends of its pro-active and targeted strategy of pushing the sale of excavators, wheel loaders, dumpers and skid steer loaders through Wacker Neuson's existing international sales network. Demand for Weidemann- and Kramer-branded compact equipment was also strong. The light equipment segment continued to grow, but the revenue figures were dented by exchange rate fluctuations (actual +8 percent, in euro only +1 percent). Revenue from services, which includes the repair and spare parts business, rose 20 percent compared with the previous year. "We will continue to look for sales opportunities in markets other than the construction and agriculture sectors and intend to align our products and services more closely with the needs of local customers," declared Peksaglam. The Group is focusing in particular on strengthening its position as an innovation leader. "Research and development - and the resulting innovations - are high priorities for our Group, also due to their importance in achieving our climate protection goals. Our aim is to ensure that we continue to deliver needs-driven, ergonomic, environmentally sound and safe products as we move forward," underlines Peksaglam.

Wacker Neuson confirms its growth forecast for 2014
The Group is optimistic about its prospects for the year ahead. "We assume that we will increase revenue overall to between EUR 1.25 and 1.30 billion, which would correspond to growth of between 8 and 12 percent on the previous year," confirmed Peksaglam. "Increasingly positive signals from Southern Europe, and - even more importantly - strong traction from established markets in Europe and North America, plus the momentum from our current strategy path are all set to benefit our business over the current year." The EBITDA margin is expected to move between 13 and 14 percent (2013: 13.2 percent), and the EBIT figure is expected to lie between 8 and 9 percent (2013: 8.2 percent). The Group has earmarked around EUR 85 million for investments in fiscal 2014 (2013: EUR 87 million).

2014 AGM
To give shareholders a reasonable stake in the Group's success over the past year, the Executive and Supervisory Boards will propose a dividend of EUR 0.40 per share at the upcoming AGM in Munich on May 27, 2014 (previous year: EUR 0.30). The distribution ratio of around 46 percent based on Group profit for 2013 is in line with the long-term dividend policy pursued by the Group.

Table: Revenue and earnings

Key figures in EUR millionQ1/14Q1/13Change
EBITDA margin as a %12.49.7+2.8 PP
EBIT margin as a %7.64.3+3.3 PP

Your contact partner:
Wacker Neuson SE
Katrin Yvonne Neuffer
Head of Corporate Communication/
Investor Relations
Preussenstrasse 41
80809 Munich, Germany
Phone +49-(0)89-35402-173

About Wacker Neuson: The Wacker Neuson Group is a leading manufacturer of light and compact equipment with over 40 affiliates, 140 sales and service stations and more than 12,000 sales and service partners across the globe. The Group can trace its roots back to 1848. 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 and energy. It also offers a global spare parts service. The Wacker Neuson Group includes the product brands Wacker Neuson, Kramer and Weidemann. In 2013, the Group achieved revenue of EUR 1.16 billion and employed over 4,100 people worldwide.

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267944  13.05.2014