Wacker Neuson SE: Wacker Neuson accelerates growth

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

11.08.2011 / 07:39

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Wacker Neuson accelerates growth

(Munich, August 11, 2011) The Wacker Neuson Group grew faster than the
overall market during the second quarter and generated its highest
quarterly revenue and profit figures since the 2007 merger. The Executive
Board has thus upped its forecast for fiscal 2011. Following the approval
of the drop-down and transfer agreement at the AGM, Wacker Neuson SE
operates as a management holding company with a central management
structure since July 28, 2011. Dr. Matthias Bruse is set to replace Dr.
Ulrich Wacker on the Supervisory Board.

Wacker Neuson improves profit margins
Munich-based light and compact equipment manufacturer Wacker Neuson grew at
an above-average rate during the second quarter of 2011. Revenue was up
30.0 percent to EUR 266.9 million (Q2 2010: EUR 205.3 million). 'We grew
significantly faster than the overall market during the second quarter,'
explains Richard Mayer, Spokesperson for the Executive Board. 'This acted
as a further lever for our earnings power and revealed efficiency gains
across the Group.' Group profit also reflected the upward trend in sales
and revenue. Preliminary profit before interest, tax, depreciation and
amortization (EBITDA) for the second quarter was up 69.3 percent on the
previous year at EUR 45.7 million (Q2 2010: EUR 27.0 million) - the highest
figure since the 2007 merger. This corresponds to an EBITDA margin of 17.1
percent (Q2 2010: 13.2 percent). Preliminary profit before interest and tax
(EBIT) increased to EUR 33.7 million (Q2 2010: EUR 17.2 million), resulting
in an EBIT margin of 12.6 percent (Q2 2010: 8.4 percent). Preliminary
profit for the second quarter after taxes and minority interests was up at
EUR 22.5 million (Q2 2010: EUR 10.9 million). This corresponds to earnings
per share of EUR 0.32 - double the same figure for the previous year.

Group revenue for the first six months of the year totaled EUR 478.7
million (H1 2010: EUR 355.6 million). The EBITDA margin amounted to 15.0
percent (H1 2010: 8.6 percent). Revenue in the light equipment segment was
up 26.0 percent at EUR 183.7 million during the first half-year. The
compact equipment segment proved a major growth driver, generating revenue
of EUR 202.4 million, an increase of 61.5 percent on the previous year.
'These strong growth rates bear testament to our strategies - primarily our
decision to leverage the synergies of our existing sales network to
distribute compact equipment outside of Europe,' continues Richard Mayer.
Favorable weather conditions brought an early start to the construction
season in the US and Europe. The start of the 'traditional' construction
season (April to June) further bolstered Group performance as demand for
equipment and services accelerated. Professional rental companies also
continued to rejuvenate their fleets and invest in new equipment.

Forecast adjusted upward - continued demand
On the back of these unusually positive results, the Executive Board upped
its forecast for the full 2011 fiscal year at the end of July and now
expects revenue to total between EUR 910 and 930 million (previous
forecast: EUR 880 to 920 million) and the EBITDA margin to amount to
between 13 and 14 percent (previous forecast: 12 to 13 percent). 'The first
half-year is typically our strongest period. However, all signs remain
positive for the second half of the year. Even if economic growth cools in
our core markets, we expect demand for our products to remain high,
bolstered in part by our sales strategies. We therefore remain committed to
our target of generating at least EUR 1 billion in revenue in 2012 and
achieving an EBITDA margin in excess of 15 percent,' reports Günther C.
Binder, Chief Financial Officer of Wacker Neuson SE.

Wacker Neuson SE becomes a group holding company
On May 26, 2011, the overwhelming majority of shareholders at the AGM
approved the proposal to drop down operating activities for the light
equipment segment in Germany (sales, production and logistics) to three
wholly owned affiliates headquartered in Munich. This transition came into
effect on July 28, 2011 upon entry in the Register of Companies. Wacker
Neuson SE continues to own over 30 other affiliates (primarily sales
affiliates outside of Germany). The company now operates as a management
holding with a central management structure that retains central Group and
corporate functions. The reorganization has no impact for shareholders.

 
Changes to management
Dr. Ulrich Wacker has stepped down from his position on the Supervisory
Board due to health reasons. His resignation was effective as of July 28,
2011. 'On behalf of the Executive Board, I would like to thank Dr. Ulrich
Wacker for his outstanding contribution to the company at both Executive
Board and Supervisory Board level. He represents the fifth generation of
the Wacker family and it was an honor for all of us to work with him. Dr.
Wacker was at the head of the company for over thirty years. He was a
primary driving force behind the expansion of the Group and its brand,
building a platform for our continued success,' concludes Richard Mayer.
The Group intends to submit an application for the judicial appointment of
Dr. Matthias Bruse, attorney-at-law and founding partner of the P+P
Pöllath+Partners law firm based in Munich, to the Supervisory Board. He
will replace Dr. Wacker for the interim period until the next AGM. Dr.
Bruse knows the company extremely well and served as a member of the
Supervisory Board prior to the merger.

On September 1, 2011, Cem Peksaglam will assume the position of CEO of
Wacker Neuson SE. Mr. Peksaglam is a highly experienced manager who has
made a name for himself on the international stage. He succeeds Dr. Georg
Sick, who left the Executive Board on September 15, 2010.

 
Table: Revenue and earnings1*
Key figures
in EUR million 
Q2/2011; Q2/2010; Change as a %; H1/2011; H1/2010; Change as a %
Revenue 266.9; 205.3; 30.0; 478.7; 355.6; 34.6
Gross margin as a % 32.6; 33.0; -0.4 PP; 32.6; 31.0; 1.6 PP
EBITDA 45.7; 27.0; 69.3; 71.6; 30.7; 133.2
EBITDA margin as a % 17.1; 13.2; 3.9 PP; 15.0; 8.6; 6.4 PP
EBIT 33.7; 17.2; 95.9; 48.6; 11.2; 333.9
EBIT margin as a % 12.6; 8.4; 4.2 PP; 10.2; 3.2; 7.0 PP
EBT 32.8; 15.8; 107.6; 46.7; 9.1; 413.2
Profit for the period 22.5; 10.9; 106.4; 31.5; 5.2; 505.8
Earnings per share 0.32; 0.16; 100.0; 0.45; 0.07; 542.9

1All figures include effects from purchase price allocation; differences
may occur as a result of figures being rounded up or down. PP = percentage
points. Expenses for service technicians have been reported in the income
statement under manufacturing costs since Q1 2011. Previously, this cost
factor was reported under selling expenses. This adjustment was made to
report business activities more clearly under earnings. Expenses for
service technicians incurred during the period under review (half-year)
amounted to EUR K 6,181. The equivalent figures from the previous year were
adjusted by an amount of EUR K 6,080. For the second quarter expenses for
service technicians amounted to EUR K 3,191 (Q2/2010: EUR K 2,877).


Your contact partner:

Wacker Neuson SE 
Katrin Yvonne Neuffer
Head of Corporate Communications /
Investor Relations
Preussenstr. 41 
80809 Munich 
Tel: +49-(0)89-35402-173
katrin.neuffer@wackerneuson.com 
www.wackerneuson.com

About Wacker Neuson
Wacker Neuson SE is a global manufacturer of light and compact equipment.
With over 30 affiliates and more than 180 locations across the globe, the
company offers an exceptionally broad portfolio of products and services. 
Manufacturing activities are distributed across three German, one Austrian,
two American and one Philippine production sites. Almost all products
manufactured by the company are branded Wacker Neuson. The only exceptions
to this in Europe are Kramer Allrad products and Weidemann-branded
agricultural machinery. With over 300 product categories and complementary
rental, spare parts and repair services, 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 the
industrial and recycling 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                                                 
Listed:      Regulierter Markt in Frankfurt (Prime Standard);       
             Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover,  
             München, Stuttgart                                     
 
 
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