Wacker Neuson SE / Key word(s): Quarter Results/Forecast13.05.2011 / 07:37Wacker Neuson SE reports most successful quarter since over two yearsEarly start of construction season fuels business growth in Q1 2011 -events in Japan do not impact delivery capabilities so far - forecast for2011 and 2012 raised(Munich, May 13, 2011) Wacker Neuson SE managed to increase revenue andearnings for the first quarter of 2011 significantly relative to the sameperiod last year and also relative to Q4 2010. The Group is leveraging itsexcellent financial and asset position to capitalize on the upswing andexpects to break the EUR 1 billion revenue barrier in 2012, one yearearlier than anticipated.Strong growth of business and earningsDevelopment during the first quarter of 2011 was extremely positive acrossthe Wacker Neuson Group. With EUR 211.8 million, the Group increasedrevenue by 40.9 percent relative to the same quarter last year (EUR 150.3million). Revenue was also up on the equivalent figure for Q4 2010 (EUR206.3 million). In terms of revenue, Q1 2011 has been the Group's mostsuccessful quarter since over two years. 'This spring, favorable weatherallowed the construction season to get off to an early start in our coreregions of Europe and the US,' explains Richard Mayer, Spokesperson for theExecutive Board of Wacker Neuson SE. This drove light equipment sales up 44percent, compact equipment sales up 54 percent and sales in the servicessegment up 19 percent. Group earnings grew even faster than sales. Profitbefore interest, tax, depreciation and amortization (EBITDA) rose to EUR25.9 million during the first quarter. This corresponds to an EBITDA marginof 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 (previousyear's quarter: EUR -5.7 million). Events in Japan did not have a negativeimpact on the Group as we have been able to fall back on our own inventory,supplementing with components from European interim depots and utilizingfaster logistics paths.'Revenue for the first quarter of 2011 almost matches that of Q1 2008 (EUR228.2 million), our benchmark for pre-crisis figures. We are pleased toreport that our gross profit margin has already returned to our highpre-crisis level. This growth was fuelled by our success in lowering fixedcosts significantly. As revenue increases over the year, this will continueto strengthen our earnings potential,' continues Mayer. 'Following thesuccessful implementation of SAP in the first quarter of 2011, we are nowworking almost exclusively with a uniform IT system. Furthermore, at theforthcoming AGM, we intend to propose that Wacker Neuson SE be transitionedto a holding structure. This new structure will enable us to raiseefficiency levels even further,' reports Mayer.Leveraging strong financial and asset position to capitalize on upswingWith an equity ratio before minority interests of 76.1 percent, the WackerNeuson Group's financial and asset position remains very healthy. Netfinancial debt totaled EUR 41.8 million at the close of the quarter(December 31, 2010: EUR 13.7 million). 'We are currently utilizing thestrong financial position we established in previous years due touncertainties on the financial markets. Our strong balance sheet structuregives us the financial position to increase our working capital and financeour planned investments,' reports Günther Binder, CFO of Wacker Neuson SE.'Once our new production facility for excavators, dumpers and skid-steerloaders in Austria is finanlized, we will have the capacity we need toreach our ambitious growth targets for 2012 and beyond,' continues Binder.High new orders for agricultural machinesThe rise in revenue relative to the same period last year was largelyfuelled by continued strong demand for light equipment in the US andstrengthened by increased investments from major rental chains. 'Followingthe crisis, the light equipment segment was the first which showed signs ofrecovery. The fact that this revival is proving to be of a rather lastingthan a short-term nature is - in our view - a very positive indicator,'states Mayer.The Group is also leveraging existing sales synergies, using its salesnetwork to distribute its compact equipment portfolio to more and moremarkets outside of Europe. Demand for compact equipment is developingparticularly well, for example, in France, Sweden, Poland, the CzechRepublic, South Africa and Brazil. Accumulated new orders for theconstruction and agricultural sectors remain on a growth path, with figuresat March 31, 2011 over 40 percent up on the same period last year.As expected, the order backlog for compact equipment for the constructionand agricultural industries returned to normal levels as deliverybottlenecks eased. The order backlog at the closing date was around 140percent up on the prior-year's figure (December 31, 2010: +350 percent).Accumulated new orders grew especially rapidly in the first quarter, withorders for agricultural machines increasing by 60 percent relative to thesame quarter last year. Fuelled by rising incomes among agriculturallandholders, demand for Weidemann equipment is rising as operators arelooking to capitalize on the efficiency-enhancing potential of theseinnovative, well-designed machines.Forecast review - return to pre-crisis levels one year earlier thananticipatedIn light of the strong results of Q1 2011 and the continued positivebusiness outlook, the Wacker Neuson Group has reviewed its forecast for theentire fiscal year. It now expects revenue to climb to between EUR 880 and920 million (which corresponds to a growth rate of between 16 and 21percent) and the EBITDA margin to settle between 12 and 13 percent.Previously, the Group had projected that revenue would rise at least 15percent to EUR 870 million relative to 2010's figure (previous year: EUR757.9 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 developpositively, the company expects to exceed pre-crisis revenue levels (themerged Wacker Neuson Group reported pro-forma revenue of around EUR 1billion in 2007) one year earlier than anticipated in 2012. The companyalso expects to achieve an EBITDA margin of 15 percent when it reaches the1 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; differencesmay occur as a result of figures being rounded up or down.Your contact partner at Wacker Neuson:Wacker Neuson SE Katrin Yvonne NeufferHead of Corporate CommunicationInvestor relationsPreussenstr. 41 80809 Munich, Germany Tel: +49-(0)89-35402-173katrin.neuffer@wackerneuson.com www.wackerneuson.comAbout Wacker NeusonWacker Neuson SE is a global manufacturer of light and compact equipment.With over 30 affiliates and more than 180 locations across the globe, thecompany 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 productsmanufactured by the company are branded Wacker Neuson. The only exceptionsto this in Europe are Kramer Allrad products and Weidemann-brandedagricultural machinery. With over 300 product categories and complementaryrental, spare parts and repair services, Wacker Neuson is the partner ofchoice among professional users in construction, gardening, landscaping andagriculture, as well as among municipal bodies and companies in theindustrial and recycling sectors.End of Corporate News---------------------------------------------------------------------13.05.2011 Dissemination of a Corporate News, transmitted by DGAP - acompany of EquityStory AG.The issuer is solely responsible for the content of this announcement.DGAP's Distribution Services include Regulatory Announcements,Financial/Corporate News and Press Releases.Media archive at www.dgap-medientreff.de and www.dgap.de---------------------------------------------------------------------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 End of News DGAP News-Service --------------------------------------------------------------------- 124494 13.05.2011
