Wacker Neuson SE: Wacker Neuson optimistic for 2013


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

20.03.2013 / 11:10


Wacker Neuson optimistic for 2013

(Munich, March 20, 2013) Munich-based light and compact equipment manufacturer Wacker Neuson increased Group revenue significantly in 2012, despite the economic downturn in Europe. The Group achieved its goals, reporting a 10-percent increase in revenue on the previous year. Wacker Neuson intends to continue with its expansion strategy in 2013.


Revenue exceeds EUR 1 billion for the first time
In line with its growth strategy, Wacker Neuson focused over the past year on increasing market penetration for its light and compact equipment offering in its core markets of Europe and the US and also on entering new markets. Group revenue rose 10.1 percent to EUR 1,091.7 million (2011: EUR 991.6 million). 'Our strong competitive position and dedicated employees enabled us to achieve a double-digit increase in revenue despite difficult market conditions,' explains Cem Peksaglam, CEO of Wacker Neuson SE. All Group business segments experienced growth. Geographically speaking, the Americas region was the strongest driver, expanding twenty percent on the previous year. The Group's largest market, Europe, also reported strong growth of seven percent. Revenue in the light equipment segment increased eight percent on the previous year while compact equipment revenue rose twelve percent on 2011. The services segment (which includes repairs and spare parts) grew by eleven percent. A comparison of annual revenue, however, shows a downturn in the pace of growth throughout the year. Revenue for the first quarter of 2012 was significantly higher than expected (+ 29.3 percent relative to 2011). However, the downturn in Europe had a major impact during the second half of 2012, with revenue for the fourth quarter of 2012 increasing 5.7 percent on the prior-year quarter to reach EUR 279.1 million.

Profitability trends
In 2012, the Group achieved profit before interest, tax, depreciation and amortization (EBITDA) of EUR 141.7 million and an EBITDA margin of 13.0 percent (2011: 16.4 percent). 'We had already increased revenue by an impressive 66 percent in the post-crisis years of 2010 and 2011. In 2012, we had to adapt our cost structures to this much higher level of revenue and align headcount accordingly. In addition, the slowdown in Europe's construction industry prompted us to implement additional ( and successful ( sales strategies in new, sometimes more competitive markets,' adds Peksaglam. 'Our profit is still in our target corridor, albeit at the lower end.' As reported by the company during the course of the year, the relocation to the new production and development center for excavators, dumpers and skid steer loaders in the town of Hörsching (Austria) had an impact on profitability. This was only a short-term effect. The new facility is a defining step in the Group's future growth plans.

Group profit before interest and tax (EBIT) came to EUR 84.9 million (2011: EUR 123.8 million), which corresponds to an EBIT margin of 7.8 percent (2011: 12.5 percent; adjusted to discount special effects: 11.4 percent). When comparing with the prior-year figure, an accounting effect resulting from a write-up in the amount of EUR 10.8 million should be taken into account. This increased EBIT margin for 2011 by a full percentage point. A similar effect did not exist in 2012.

Net profit for the period amounted to EUR 54.1 million (2011: EUR 85.8 million). This results in earnings per share of EUR 0.77 (previous year: EUR 1.22).

Suggested appropriation of net profit
To enable shareholders to benefit from the success of the Group in the past year, the Executive Board and Supervisory Board will propose a dividend of EUR 0.30 per share at the forthcoming Annual General Meeting on May 28, 2013 (2011: EUR 0.50). The dividend ratio of around 39 percent is in line with the Group's dividend policy (2011: 41 percent).

Strong financials
The Group's financials and assets remain strong.
'Over the past six years, we have invested around EUR 475 million in the company - which is a significant amount for an organization of our size. It also clearly shows that we are laying the foundations for continued growth,' continues Peksaglam. Wacker Neuson is also investing in working capital to improve delivery capabilities and ensure that its products are available faster. 'We have had to introduce the more modern Tier-IV-compliant engine as a result of increasingly stringent emissions standards. This has had a number of implications for our logistics workflows,' says Cem Peksaglam. 'However, our healthy financials enable us to take early, focused action to master the resulting challenges.'

At EUR 13.6 million, operative cash flow was again positive in 2012 (2011: EUR 43.6 million). The Group's strong credit rating enabled it to successfully place a bonded loan (Schuldscheindarlehen) in the amount of EUR 120 million at attractive conditions in February 2012. The loan gives Wacker Neuson the long-term financial headroom and security to continue expansion in line with its strategy. Equity ratio (before minority interests) was around 68 percent while gearing amounted to 23 percent.


Further internationalization
The economies of many emerging markets are developing rapidly, with rising labor costs prompting companies to switch to more productive construction equipment. Infrastructure expansion and improvement projects here represent major opportunities for Wacker Neuson. 'We are currently expanding our presence in emerging markets, partly launching products tailored to the specific local needs. Our long-term goal is to increase the share of revenue from regions outside of Europe to around 50 percent (2012: 29 percent),' elaborates Peksaglam.

German-speaking markets continue to develop well for Wacker Neuson. In the US, the residential construction and rental markets have picked up. 'Our broad market reach has driven the success of our cross-selling strategy ( both across product segments and across market segments as we target new customers in energy, industry and agriculture for instance,' explains Peksaglam. In the future, the Group will be strengthening its presence in the fast-growing agricultural industry by launching a new 'green line' of wheel loaders and telescopic handlers specially produced by affiliate Kramer.

Revenue forecast of EUR 1.2 billion for 2013
Due to its effective execution strategies, Wacker Neuson remains optimistic about the current year. 'We expect business to increase, particularly in the second half of the year. From our current standpoint, we expect revenue to amount to EUR 1.2 billion,' underscores Peksaglam. The Group also expects the EBITDA margin to exceed 13 percent. Wacker Neuson has earmarked around EUR 80 million in total for investments in fiscal 2013 (2011: EUR 104 million).

Key figures

in EUR millionQ4 2012Q4 2011Q4 2011
adjusted1
FY 2012FY 2011Difference
Revenue 279.1 264.0264.0 1,091.7 991.6 +10.1%
EBITDA 31.4 41.341.3 141.7 162.6 -12.9%
EBITDA margin as a % 11.2 15.715.7 13.0 16.4 -3.4PP
EBIT 15.6 37.526.7 84.9 123.82 -31.4%
Consolidated earnings 9.7 26.916.1 54.1 85.82 -36.9%
Earnings per share in EUR 0.14 0.380.23 0.77 1.222 -36.9%

 

1 Adjusted for a write-up on intangible assets (brand value) in 2011 in the amount of EUR 10.8 million.
2 Includes a write-up on intangible assets (brand value) in 2011 in the amount of EUR 10.8 million.

Your contact partner:

Wacker Neuson SE
Katrin Yvonne Neuffer

Investor Relations
Preussenstr. 41
80809 Munich, Germany
Tel: +49-(0)89-35402-173
katrin.neuffer@wackerneuson.com
www.wackerneuson.com

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. In 2012, the Group achieved revenue of EUR 1.1 billion and employed over 4,000 people worldwide.



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204467  20.03.2013