Wacker Neuson SE / Quarter Results
14.05.2009
Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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Economic crisis and harsh winter in January and February lead to drop in
sales and first-quarter losses - with noticeable revival in March
(Munich, May 14, 2009) Wacker Neuson SE has maintained its stable financial
position in the first quarter of fiscal 2009 with a high equity ratio,
positive operative cash flow and low net financial debt. First-quarter
sales and profit were significantly down due to the economic crisis and a
harsh winter, leading the Group to intensify its cost-saving measures.
The company retains a positive operative cash flow and a high equity ratio
of 77.3 percent
The first quarter of the year confirmed fears that the global recession
would hit the construction industry. Harsh winter weather in January and
February compounded this situation and resulted in a drop in orders and
significantly lower sales compared with the same period last year. 'An
improvement in the weather saw business pick up in Europe during March. We
have increased our cost-cutting measures without compromising the core
competencies or performance levels of the company,' explains Dr.-Ing. Georg
Sick, CEO of Wacker Neuson SE. Cost cuts include lowering the investment
budget by 40 percent (compared with last year), postponing projects and
reducing work hours and personnel costs by 20 percent relative to the end
of 2008. To achieve this, the company is mainly focusing on expanding its
flexitime framework and implementing short-time work at individual
production sites in Germany and Austria, together with staff
rationalization in unavoidable cases. The company has also continued
reducing inventory in order to cut back on working capital. 'We have been
able to maintain our stable financial position with a high equity ratio of
77.3 percent, positive operative cash flow and a consistently low net
financial debt,' continues Sick. Sales fell 39.9 percent to EUR 137.3
million (previous year: EUR 228.2 million). Profit before interest, tax,
depreciation and amortization (EBITDA) dropped from EUR 29.4 million to EUR
-12.3 million, while quarterly earnings amounted to EUR -16.6 million
(previous year: EUR 12.3 million). Partly accountable for the drop in
earnings were one-off expenses of around EUR 5 million attributable to
restructuring measures.
Winning market share despite the recession
Short-term prospects for the construction industry continue to be
overshadowed by the overall economic recession and industry downturn.
'Despite experiencing a slight improvement in March, we are still extremely
cautious about further trends in 2009 and expect the global construction
industry to continue its downward spiral until well into 2010,' explains
Sick. Furthermore, increased competition is negatively impacting customer
order patterns. 'Order intake has dropped and it is unclear how order
patterns will develop in the coming months, thus making it impossible for
us to accurately forecast sales and earnings in fiscal 2009. However, we
still expect reduced sales and earnings for the current fiscal year and,
based on our current position, cannot rule out losses for the first six
months of the year,' states Sick. Nevertheless, the current situation is
leading to a rapidly rising backlog of infrastructure projects worldwide.
The Wacker Neuson Group therefore intends to continue investing wisely to
maintain its proven product and service quality and remain close to its
customers. The Group also remains committed to launching compact equipment
in new markets - with the ultimate aim of winning new market share. 'We are
also looking to consolidate our strong financial and asset position with a
high equity ratio of 77.3 percent and a debt level of just 7.0 percent. We
plan to lower our working capital by reducing inventory,' emphasizes Sick.
Key figures: Wacker Neuson Group*
in EUR million Q1/2009 Q1/2008 Difference
in %
Revenue 137.3 228.3 -39.9%
EBITDA -12.3 29.4 -
EBIT -22.6 19.1 -
EBT -23.0 18.5 -
Profit
for the period -16.6 12.3 -
* All figures include effects from purchase price allocation
Your contact partner at Wacker Neuson:
Wacker Neuson SE
Imre Szerdahelyi
Head of Corporate Communication
Preußenstr. 41
80809 Munich
Tel. +49 - (0)89 - 354 02 - 251
imre.szerdahelyi@wackerneuson.com
www.wackerneuson.com
About Wacker Neuson:
Completed in 2007, the merger between the parent company Wacker
Construction Equipment AG and Neuson Kramer Baumaschinen AG has created a
major global manufacturer of light and compact equipment. With over 30
affiliates and more than 180 sales and service stations across the globe,
the new company offers an unparalleled product portfolio. All products
manufactured by the company are now branded Wacker Neuson. The exceptions
to this in Europe are Kramer all-wheel loaders and the Weidemann brand,
which will be retained and further developed for the agricultural industry.
With over 300 product categories and extensive 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. A European company since February 2009, the group trades under the
name Wacker Neuson SE.
DGAP 14.05.2009
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Language: English
Issuer: 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, Hannover, Düsseldorf, Hamburg, München, Stuttgart
End of News DGAP News-Service
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DGAP-News: Wacker Neuson SE: Wacker Neuson SE maintains stable financial position in the first quarter of 2009
| Source: EQS Group AG