DGAP-News: Wacker Neuson SE / Key word(s): Interim Report/Quarter
Results
Wacker Neuson SE: Strong start to the year for the Wacker Neuson Group
12.05.2015 / 07:59
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Strong start to the year for the Wacker Neuson Group
(Munich, May 12, 2015) The Wacker Neuson Group has reported a rise in
revenue and profit for the first quarter of 2015. The Munich-based light
and compact equipment manufacturer experienced strongest growth in the
Americas region. Currency fluctuations had a significant positive impact on
growth. The Group has confirmed its forecast for fiscal 2015.
Revenue 11 percent higher than the previous year
2015 got off to a good start for the Group with revenue for the first
quarter increasing 11 percent relative to the prior-year period to EUR
324.3 million (Q1 2014: EUR 291.6 million). This represents a record high
for Q1 revenue for the Group. "We have continued to implement our
strategies and they have proved effective even though - from a global
perspective - markets are moving in different directions. Our strong market
position, above all in Europe and North America, has enabled us to offset
negative market developments in South America, Russia and Australia,"
explains Cem Peksaglam, CEO of Wacker Neuson SE.
Revenue in Europe rose 7 percent compared with the previous year. This
region accounts for 71 percent and thus the lion's share of Group revenue.
The Group saw its strongest revenue growth in the Americas, however, which
posted a rise of 24 percent. Currency effects played a major role in this
region, with revenue growing 5 percent when adjusted to discount currency
fluctuations. Currency developments also impacted the Asia-Pacific region,
where Q1 revenue was 20 percent higher than in the prior-year period (6
percent when adjusted for currency effects).
Strategy increasingly paying off
The compact equipment segment again proved to be a strong revenue driver in
the first quarter of 2015. Segment revenue increased 18 percent on the
previous year (16 percent when adjusted for currency effects). "Our
strategy of harnessing and expanding our global sales network to
proactively distribute our excavators, wheel loaders, telescopic handlers,
dumpers and skid steer loaders in specific markets is increasingly paying
dividends. At the same time, we are also benefiting from our targeted
efforts to diversify into different markets. The fact that we were able to
increase revenue from machines for the agricultural industry by 15 percent
in Q1 despite the weak situation in the agricultural machinery sector
clearly confirms the effectiveness of our strategy," explains Peksaglam.
Revenue from light equipment rose 6 percent and was thus below Group
expectations. The late start to the construction season in the northern
hemisphere was one of the factors that affected performance here. The Group
generates a major part of its light equipment revenue outside of the
eurozone. Currency fluctuations therefore had a stronger impact in this
segment. When adjusted to discount currency effects, revenue was 5 percent
below the previous year's figure. Revenue from the services segment, which
includes the repairs and spare parts business, was 5 percent higher than
the prior-year quarter. When adjusted to discount currency effects, this
figure remained at the same level as the previous year.
The Wacker Neuson Group is committed to strengthening its position as an
innovation leader and its products regularly receive awards from
independent third parties. "In April, we presented many of our new products
and innovations to customers and business partners at Intermat in Paris,
this year's largest construction industry trade show. We unveiled our new
EW65 mobile excavator and the ET90 track excavator for the first time
together with the new zero-emissions DT10e electric track dumper," adds
Peksaglam.
Clear rise in profit
At EUR 31.7 million, profit before interest and tax (EBIT) for the first
quarter of 2015 was 43 percent higher than the previous year. This is a
record high for first-quarter profit for the Group. The EBIT margin
increased to 9.8 percent (Q1 2014: EUR 22.1 million; 7.6 percent). Profit
for the period amounted to EUR 21.3 million (Q1 2014: EUR 14.3 million).
This pushed up earnings per share by 49 percent to EUR 0.30 (Q1 2014: EUR
0.20). This tangible improvement in profit was fueled in no small part by
the Group's ongoing commitment to implementing efficiency-boosting measures
and leveraging synergies across the entire Group.
Increase in inventories for the start of the construction season
In contrast to the prior-year period, cash flow from operating activities
in the first quarter was negative at EUR -20.6 million (Q1 2014: EUR 18.7
million). This decrease stems, among other things, from the Group's
targeted efforts to increase inventories for the start of the 2015
construction season in its core markets. Before investments in working
capital, cash flow from operating activities amounted to EUR 38.1 million
(Q1 2014: EUR 35.0 million). Free cash flow came to EUR -45.9 million (Q1
2014: EUR -8.5 million). The company expects free cash flow be positive for
the year as a whole.
Growth forecast for 2015 confirmed
The Group is optimistic about the coming months and the construction season
will pick up during this period. "The growth strategies that we have
initiated are increasingly taking effect. Despite overall economic
uncertainties in individual markets and regions, these measures will
continue to secure our success for the rest of the year," confirms
Peksaglam. "We stand by our forecast of an overall revenue for the year of
between EUR 1.40 and 1.45 billion. This would correspond to growth of
between 9 and 13 percent relative to the previous year." The EBITDA margin
is expected to come in at between 9.5 and 10.5 percent (2014: 10.6
percent). For fiscal 2015, Wacker Neuson has earmarked around EUR 95
million in total for investments (2014: EUR 90 million).
2015 Annual General Meeting
The Group wants its shareholders to participate in its successful
performance over the past fiscal year. The Executive Board and Supervisory
Board will therefore propose a dividend payout of EUR 0.50 per share (2014:
EUR 0.40) at the Annual General Meeting, which will be held in Munich on
May 27, 2015. This corresponds to a distribution ratio of around 38 percent
of Group profit for 2014 and is thus in line with the Group's long-term
dividend policy.
Table: Revenue and earnings
Key figures in EUR Million_Q1/15_Q1/14_Change
Revenue_324.3_291.6_11.2%
EBITDA_47.4_36.2_30.9%
EBITDA margin as a %_14.6_12.4_2.2 PP
EBIT_31.7_22.1_43.4
EBIT margin as a %_9.8_7.6_2.2 PP
Your contact partner:
Wacker Neuson SE
Katrin Yvonne Neuffer
Head of Corporate Communication /
Investor Relations
Preussenstrasse 41
80809 Munich, Germany
Tel. +49-(0)89-35402-173
katrin.neuffer@wackerneuson.com
www.wackerneusongroup.com
The Wacker Neuson Group is an international family of companies and a
leading manufacturer of light and compact equipment with over 50 affiliates
and 140 sales and service stations. The Group offers its customers a broad
and deep portfolio of products, a wide range of services and an efficient,
global spare parts service. The product brands Wacker Neuson, Kramer and
Weidemann belong to the Wacker Neuson Group. 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
industries such as recycling and energy. In 2014, the Group achieved
revenue of EUR 1.28 billion, employing around 4,500 people worldwide.
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Language: English
Company: Wacker Neuson SE
PreuÃenstr. 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: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover,
Munich, Stuttgart
End of News DGAP News-Service
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356091 12.05.2015
DGAP-News: Wacker Neuson SE: Strong start to the year for the Wacker Neuson Group
| Source: EQS Group AG