Wacker Neuson SE: Wacker Neuson SE reports most successful quarter since over two years

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

13.05.2011 / 07:37

Wacker Neuson SE reports most successful quarter since over two years

Early start of construction season fuels business growth in Q1 2011 -
events in Japan do not impact delivery capabilities so far - forecast for
2011 and 2012 raised

(Munich, May 13, 2011) Wacker Neuson SE managed to increase revenue and
earnings for the first quarter of 2011 significantly relative to the same
period last year and also relative to Q4 2010. The Group is leveraging its
excellent financial and asset position to capitalize on the upswing and
expects to break the EUR 1 billion revenue barrier in 2012, one year
earlier than anticipated.

Strong growth of business and earnings
Development during the first quarter of 2011 was extremely positive across
the Wacker Neuson Group. With EUR 211.8 million, the Group increased
revenue by 40.9 percent relative to the same quarter last year (EUR 150.3
million). Revenue was also up on the equivalent figure for Q4 2010 (EUR
206.3 million). In terms of revenue, Q1 2011 has been the Group's most
successful quarter since over two years. 'This spring, favorable weather
allowed the construction season to get off to an early start in our core
regions of Europe and the US,' explains Richard Mayer, Spokesperson for the
Executive Board of Wacker Neuson SE. This drove light equipment sales up 44
percent, compact equipment sales up 54 percent and sales in the services
segment up 19 percent. Group earnings grew even faster than sales. Profit
before interest, tax, depreciation and amortization (EBITDA) rose to EUR
25.9 million during the first quarter. This corresponds to an EBITDA margin
of 12.2 percent (previous year's quarter: EUR 3.7 million; EBITDA margin:
2.4 percent). Profit for the period amounted to EUR 9.0 million (previous
year's quarter: EUR -5.7 million). Events in Japan did not have a negative
impact on the Group as we have been able to fall back on our own inventory,
supplementing with components from European interim depots and utilizing
faster logistics paths.

'Revenue for the first quarter of 2011 almost matches that of Q1 2008 (EUR
228.2 million), our benchmark for pre-crisis figures. We are pleased to
report that our gross profit margin has already returned to our high
pre-crisis level. This growth was fuelled by our success in lowering fixed
costs significantly. As revenue increases over the year, this will continue
to strengthen our earnings potential,' continues Mayer. 'Following the
successful implementation of SAP in the first quarter of 2011, we are now
working almost exclusively with a uniform IT system. Furthermore, at the
forthcoming AGM, we intend to propose that Wacker Neuson SE be transitioned
to a holding structure. This new structure will enable us to raise
efficiency levels even further,' reports Mayer.

Leveraging strong financial and asset position to capitalize on upswing
With an equity ratio before minority interests of 76.1 percent, the Wacker
Neuson Group's financial and asset position remains very healthy. Net
financial debt totaled EUR 41.8 million at the close of the quarter
(December 31, 2010: EUR 13.7 million). 'We are currently utilizing the
strong financial position we established in previous years due to
uncertainties on the financial markets. Our strong balance sheet structure
gives us the financial position to increase our working capital and finance
our planned investments,' reports Günther Binder, CFO of Wacker Neuson SE.
'Once our new production facility for excavators, dumpers and skid-steer
loaders in Austria is finanlized, we will have the capacity we need to
reach our ambitious growth targets for 2012 and beyond,' continues Binder.

High new orders for agricultural machines
The rise in revenue relative to the same period last year was largely
fuelled by continued strong demand for light equipment in the US and
strengthened by increased investments from major rental chains. 'Following
the crisis, the light equipment segment was the first which showed signs of
recovery. The fact that this revival is proving to be of a rather lasting
than a short-term nature is - in our view - a very positive indicator,'
states Mayer.

The Group is also leveraging existing sales synergies, using its sales
network to distribute its compact equipment portfolio to more and more
markets outside of Europe. Demand for compact equipment is developing
particularly well, for example, in France, Sweden, Poland, the Czech
Republic, South Africa and Brazil. Accumulated new orders for the
construction and agricultural sectors remain on a growth path, with figures
at March 31, 2011 over 40 percent up on the same period last year.

As expected, the order backlog for compact equipment for the construction
and agricultural industries returned to normal levels as delivery
bottlenecks eased. The order backlog at the closing date was around 140
percent up on the prior-year's figure (December 31, 2010: +350 percent).

Accumulated new orders grew especially rapidly in the first quarter, with
orders for agricultural machines increasing by 60 percent relative to the
same quarter last year. Fuelled by rising incomes among agricultural
landholders, demand for Weidemann equipment is rising as operators are
looking to capitalize on the efficiency-enhancing potential of these
innovative, well-designed machines.

Forecast review - return to pre-crisis levels one year earlier than
anticipated
In light of the strong results of Q1 2011 and the continued positive
business outlook, the Wacker Neuson Group has reviewed its forecast for the
entire fiscal year. It now expects revenue to climb to between EUR 880 and
920 million (which corresponds to a growth rate of between 16 and 21
percent) and the EBITDA margin to settle between 12 and 13 percent.
Previously, the Group had projected that revenue would rise at least 15
percent to EUR 870 million relative to 2010's figure (previous year: EUR
757.9 million) and that the EBITDA margin would be at least 12 percent
(previous year: 10.3 percent).

From today's perspective and assuming the market continues to develop
positively, the company expects to exceed pre-crisis revenue levels (the
merged Wacker Neuson Group reported pro-forma revenue of around EUR 1
billion in 2007) one year earlier than anticipated in 2012. The company
also expects to achieve an EBITDA margin of 15 percent when it reaches the
1 billion mark.

 
Key figures: Wacker Neuson Group*
in EUR million Q1_2011/Q1_2010/Q4_2010
  
Revenue 211.8/150.3/206.3 
EBITDA 25.9/3.7/22.1 
EBITDA margin as a %  12.2/2.4/10.7 
EBIT 14.9/-5.9/11.4 
EBIT margin as a %  7.1/-3.9/5.5 
Consolidated earnings 9.0/-5.7/8.6 
* All figures include effects from purchase price allocation; differences
may occur as a result of figures being rounded up or down.


Your contact partner at Wacker Neuson:

Wacker Neuson SE 
Katrin Yvonne Neuffer
Head of Corporate Communication
Investor relations
Preussenstr. 41 
80809 Munich, Germany 
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                                          
             Deutschland                                            
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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