Wacker Neuson SE: Slight growth for Wacker Neuson in Q3 2012

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

13.11.2012 / 07:31

Slight growth for Wacker Neuson in Q3 2012

Americas accounts for largest share of growth; services sector also develops positively; revenue forecast confirmed

(Munich, November 13, 2012) Business at Munich-based light and compact equipment manufacturer Wacker Neuson has developed positively since the start of the year. Third-quarter group revenue was up on the prior-year period despite the tense market situation in Europe. The company has confirmed its forecast for fiscal 2012.

Nine-month revenue at all-time high ( revenue increases in third quarter
In the first nine months of 2012, Group revenue rose 12 percent to EUR 812.6 million (9M 2011: EUR 727.6 million) ( a record result for the period. Light equipment and compact equipment were the strongest segments, reporting increases of 10 and 14 percent respectively. The Americas was the strongest regional revenue driver, with a rise of 22 percent. In Europe, revenue grew by 8 percent.

Group revenue for the period July through September 2012 rose by just 2 percent to reach EUR 254.5 million (Q3 2011: EUR 248.9 million). Even allowing for the fact that the prior-year period was relatively strong by comparison, the results nonetheless reflect a downturn in the economy, especially in the European construction sector. 'During the third quarter in particular, we felt the impact of falling demand in the European construction industry as a result of the ongoing finance and debt crisis,' explains Cem Peksaglam, CEO of Wacker Neuson SE. 'In contrast, our revenue in the Americas region continued to develop well, rising 10 percent on the prior-year period. The Asia-Pacific region reported 16 percent growth on the prior-year period,'. The services segment accounted for over one fifth of Group revenue. 'Our services segment also developed extremely well in the third quarter, increasing by over 13 percent on the previous year. Services will continue to play an increasingly important role for Wacker Neuson,' continues Peksaglam.

Profitability trends
Unfavorable market conditions in Europe caused the EBITDA margin for the first nine months of 2012 to fall to 13.6 percent (9M 2011: 16.7 percent) and the EBIT margin to drop to 8.5 percent (9M 2011: 11.9 percent). The relocation to the new production facility in Hörsching, near Linz, Austria, led to unexpected delays in product deliveries and additional one-off start-up costs, all of which had a further impact on revenue and earnings. Processes at the plant have now been optimized and the planned level of capacity utilization has been reached. As a result of these factors, earnings for the past three months were below expectations. The EBITDA margin amounted to 13.4 percent - a rise on the same figure for Q2 2012 (13.1 percent) but a significant drop on the prior-year period (Q3 2011: 19.9 percent; adjusted to discount one-off effects: 18.1 percent). During Q3, working capital hardly increased at all relative to the previous quarter. Cash flow from operating activities was thus positive. In the third quarter, the Group's cash flow from operating activities amounted to EUR 21.5 million, a significant rise on the previous year (Q3 2011: EUR 14.4 million).

Outlook and forecast for 2012
The fourth quarter got off to a promising start, although Group performance varied significantly from region to region. The Americas region looks set to continue on its growth path, whereas demand in Europe will most likely fall further. 'We will continue to monitor market developments closely and retain our high level of flexibility, thus enabling us to react rapidly to any market changes,' confirms Peksaglam. 'Our current order intake levels leave us optimistic for the fourth quarter of 2012.' Wacker Neuson has reconfirmed its forecast for the current year and expects revenue to amount to around EUR 1.1 billion (2011: EUR 991.6 million). It also expects the EBITDA margin level out between 13 and 15 percent (2011: 16.4 percent). Wacker Neuson will remain committed to its strategy of increasing core market penetration and expanding its international footprint. The company also plans to grow further in 2013, depending on how the general economic climate develops, especially in Europe.

Table: Revenue and earnings1

Key data
in EUR million
Q3/2012 Q3/2011 Change as a % 9M/2012 9M/2011 Change as a %
Revenue 254.5 248.9 +2.2 812.6 727.6 +11.7
Gross margin as a % 32.3 34.3 -2.0 PP 30.9 33.2 -2.3 PP
EBITDA 34.2 49.6 -31.0 110.3 121.2 -9.0
EBITDA margin as a % 13.4 19.9 -6.5 PP 13.6 16.7 -3.1 PP
EBIT 20.1 37.6 -46.5 69.3 86.2 -19.6
EBIT margin as a % 7.9 15.1 -7.2 PP 8.5 11.9 -3.4 PP
Profit for the period 13.5 27.4 -50.7 44.5 59.0 -24.6
Earnings per share in EUR 0.19 0.39 -51.3 0.63 0.84 -25.0


1 All figures include effects from purchase price allocation; differences may occur as a result of figures being rounded up or down. PP = percentage points.


Your contact partner:

Wacker Neuson SE
Katrin Yvonne Neuffer
Head of Corporate Communication /
Investor Relations
Preussenstr. 41
80809 Munich, Germany
Tel.: +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 Wacker sales and service stations and more than 12,000 partner sales and service stations across the globe. The Group can trace its roots back to 1848. Products manufactured by the company are branded Wacker Neuson. In Europe, the Group also distributes compact equipment under the brand names Kramer Allrad and Weidemann (agricultural machinery). With over 300 product categories and a global spare parts service, 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. The Wacker Neuson SE holding has been listed on the Frankfurt stock exchange since 2007.

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