Wacker Neuson SE: Wacker Neuson optimistic for 2012

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

22.03.2012 / 10:09

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Wacker Neuson optimistic for 2012

(Munich, March 22, 2012)

Rising demand coupled with the Group's growth strategy put Wacker Neuson in
an exceptionally strong position to capitalize on the global economic
recovery over the past two years. The light and compact equipment
manufacturer has reported record revenue and earnings for fiscal 2011.
Wacker Neuson has its sights set on further growth in 2012 and intends to
continue with its successful expansion strategy.


Record year 2011
In line with its growth strategy, Wacker Neuson focused on increasing
market penetration for its light and compact equipment offering in its core
markets in Europe and North America in 2011. At EUR 991.6 million (previous
year: EUR 757.9 million), Group revenue was up by 30.8 percent, making 2011
the best fiscal year in the company's history. Wacker Neuson has thus
achieved its goal of returning to 2007 pre-crisis figures even earlier than
expected. The euro and debt crises had hardly any impact on business
performance in 2011. 'Our commitment to retain our core workforce and to
keep crucial expertise in the company during the economic crisis is paying
off now. We are now in a position to seize market opportunities quickly. In
just two years, we have increased revenue by an impressive 66 percent,'
explains Cem Peksaglam, CEO of Wacker Neuson.

This growth was powered by the entire Group, with double-digit revenue
increases across all business segments. From a geographical standpoint, the
Americas region performed particularly well, reporting a 37 percent rise in
revenue compared with the previous year. Europe also put in a strong
performance with an impressive revenue jump of 30 percent. The compact
equipment business segment reported the most dynamic revenue trend, with a
52 percent rise on the previous year. Agricultural machinery is accounting
for an increasingly large share of the revenue mix, rising from 12 percent
in 2010 to 16 percent last year. Revenue in the light equipment segment was
up 25 percent on the previous year. North America proved to be a
particularly strong driver here, with revenue from utility products - above
all generators and light towers - experiencing exceptional growth.

Increased profitability
The Group also increased its profitability significantly in 2011. At EUR
162.6 million, profit before interest, tax, depreciation and amortization
(EBITDA) more than doubled, resulting in an EBITDA margin of 16.4 percent
(previous year: 10.3 percent). At EUR 85.8 million, net profit for the
period was 3.5 times higher than the prior-year figure (previous year: EUR
23.9 million). Earnings per share totaled EUR 1.22 (previous year: EUR
0.34). The transition to a holding organization has created a more
transparent, homogenous structure throughout the Group. This, together with
the Group-wide roll-out of a standardized enterprise resource planning
system, is enabling the company to optimize internal processes and
gradually reach its efficiency goals.

Strong financial position
With an equity ratio (before minority interests) of around 75 percent and
gearing of just 10 percent at the closing date, the Group's financials and
assets remain strong. This healthy position was confirmed in February 2012
when the Group successfully placed a Schuldschein loan in the amount of EUR
120 million at attractive conditions. The loan will initially be used to
redeem short-term lines of credit, while at the same time providing the
Group with the financial security and headroom to pursue its expansion
plans.

As scheduled, production of excavators, dumpers and skid steer loaders will
start in just a few weeks at the Group's new site in the Austrian town of
Hörsching, near Linz. The investment triples Wacker Neuson's production
capacity for compact equipment and will allow to meet rising demand. This
move means that all of the Group's production facilities for compact
equipment have been constructed in the last six years and are thus
state-of-the-art.

Double-digit revenue growth expected in 2012
Uncertainty regarding developments in the European construction sector
still remain due to the debt situation in a number of countries.
Nevertheless, demand for light and compact equipment is set to rise, driven
by the global trend for increased investments in infrastructure and
maintenance. Wacker Neuson is thus optimistic about 2012. 'The current
fiscal year got off to a good start. We are confident that our company can
absorb economic fluctuations best possible thanks to our financial
stability and diversified business base,' states Peksaglam. 'We have set
ambitious growth targets for the coming years - and we intend to achieve
these,' he continues. 'We have defined a variety of action items aimed at
profitable growth, in particular expanding our our international footprint
and bringing our innovative product and service offering to a wider
market.'

Over the coming years, the Wacker Neuson Group's strategy will focus on
establishing and expanding sales and service structures in Europe and North
America, as well as in dynamic geographies such as South America and Asia.
Wacker Neuson sees major growth opportunities in emerging markets. Today,
these economies only account for around 13 percent of revenue. 'In China,
we are currently expanding our light equipment portfolio for the mid-price
segment. We will unveil our new offering to the large crowds expected at
'bauma China 2012' in Shanghai,' explains Peksaglam.

Assuming market trends remain positive, the Executive Board predicts
overall revenue for fiscal 2012 of around EUR 1.1 billion and an EBITDA
margin of at least 15 percent. It also expects double-digit revenue growth
in 2013, with the same high levels of profitability. These forecasts take
into consideration the slight squeeze on mid-term margins associated with
the effort and expense involved in expansion. However, the company regards
expansion activities as an investment in its future success. 'Our growth
strategy is based on a strong foundation comprising our healthy financial
standing, innovation leadership and strong market position flanked by a
high level of brand awareness in our core markets. We will also continue to
evaluate alliances and acquisitions with a view to enhancing our product
portfolio and to expand our international footprint,' highlights Peksaglam.
The company aims to maintain its sound balance sheet structure with a high
equity ratio.

For the current fiscal year, Wacker Neuson has earmarked around EUR 100
million in total for investments (2011: EUR 106 million).

Key figures 
in EUR million_FY/2011_FY/2010_Difference
Revenue_991.6_757.9_+30.8%
EBITDA_162.6_77.8_+109.0%
EBITDA margin as a %_16.4_10.3_+6.1PP
EBIT_123.8*_36.7_+237.3%
Consolidated earnings_85.8*_23.9_+259.0%
Earnings per share in EUR_1.22_0.34_+258.8%
      
*Includes reversal of brand impairment in 2011 (refer to the 'Earnings'
section in the 2011 Annual Report for further details).


Your contact partner:

Wacker Neuson SE 
Katrin Yvonne Neuffer
Head of Corpoate Communication/
Investor Relations
Preussenstr. 41 
80809 Munich 
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 and more than 140 sales and service
stations across the globe. Manufacturing activities are distributed across
three sites in Germany, one in Austria, a components manufacturing plant in
Serbia, two sites in the US and one in the Philippines. 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 a wide range of industries including the
construction, gardening, landscaping and agriculture sectors, as well as
among municipal bodies and companies in the industrial, recycling and
energy sectors.


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Language:    English                                                
Company:     Wacker Neuson SE                                       
             Preußenstr. 41                                         
             80809 München                                          
             Germany                                                
Phone:       +49 - (0)89 - 354 02 - 0                               
Fax:         +49 - (0)89 - 354 02 - 390                             
E-mail:      info@wackerneuson.com                                  
Internet:    www.wackerneuson.com                                   
ISIN:        DE000WACK012                                           
WKN:         WACK01                                                 
Indices:     SDAX                                                   
Listed:      Regulierter Markt in Frankfurt (Prime Standard);       
             Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover,  
             München, Stuttgart                                     
 
 
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