DGAP-News: Wacker Neuson SE: Wacker Neuson Group continues on growth path


DGAP-News: Wacker Neuson SE / Key word(s): Quarter Results/Half Year
Results
Wacker Neuson SE: Wacker Neuson Group continues on growth path

04.08.2015 / 07:33

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Wacker Neuson Group continues on growth path

(Munich, August 4, 2015) Leading international light and compact equipment
manufacturer the Wacker Neuson Group has again reported record revenue and
earnings for the first half of 2015 despite challenging regional market
conditions. The Group remains committed to its forecast for 2015.

Record six months in 2015
Revenue for the first half of 2015 increased 14 percent relative to the
prior-year period to EUR 706.4 million (+8 percent when adjusted to
discount currency effects) and thus reached a new record high for the
period (H1/14: EUR 620.0 million). "Our business grew significantly despite
negative market developments in many countries, especially outside of the
US and Europe. This is due to our strong market position and our continued
commitment to implementing our strategy," explains Cem Peksaglam, CEO of
Wacker Neuson SE.

In Europe, revenue rose 11 percent compared with the previous year. The
region accounts for the lion's share of revenue at 72 percent. The largest
nominal increase came from the Americas region, which reported a 22-percent
rise in revenue. This figure was significantly affected by currency
effects, however (+3 percent when adjusted to discount these). Currency
effects also impacted the Asia-Pacific region, where revenue for the first
half of 2015 was 21 percent higher than the prior-year. When adjusted to
discount currency effects, the rise in revenue was 8 percent in that
region.

The compact equipment segment again proved to be the main growth driver in
the first half of 2015. Revenue for this segment increased by 25 percent
relative to the previous year (+22 percent when adjusted to discount
currency effects). Revenue from the light equipment segment rose 5 percent
and thus fell short of expectations. This was mainly attributable to
difficult market dynamics in countries such as Canada, Brazil, Chile,
China, Australia and Russia. Exchange rate effects had more of an impact on
this segment as a large part of revenue from light equipment is generated
outside of Europe. When adjusted to discount currency effects, revenue here
was thus 6 percent lower than in the previous year. Revenue for the
services segment, which covers the Group's repair and spare parts business,
increased 4 percent compared with the previous year. After discounting
currency effects, revenue for the segment remained at the same level as the
prior year.

Profit higher than H1 2014
Profit before interest and tax (EBIT) for the first half of 2015 rose 4
percent relative to the prior year to reach a new record high of EUR 65.7
million. The EBIT margin amounted to 9.3 percent (H1/14: EUR 63.4 million;
10.2 percent). Profit for the period came to EUR 45.2 million (H1/14: EUR
42.5 million). This corresponds to earnings per share of EUR 0.64, which is
an increase of 6 percent relative to the previous year (H1/14: EUR 0.61).

Profit was affected by changes in the regional and sales mix relative to
the previous year. The compact equipment segment's share of Group revenue
exceeded 51 percent while the light equipment's share fell to just under 30
percent. The services segment accounted for 19 percent of revenue.

The Group intensified its production, R&D and sales activities in response
to the strong rise in revenue. "We are strengthening our foundation for
future success by making carefully managed investments in our international
organization," summarizes Peksaglam.

Revenue for second quarter of 2015 rises while profit falls below the
prior-year quarter
Group revenue for the second quarter of 2015 amounted to EUR 382.1 million
and is thus 16 percent higher than the record figure from the previous year
(Q2 2014: EUR 328.4 million). When adjusted to discount currency effects,
revenue for the quarter increased by 11 percent.

Profit before interest and tax (EBIT) for the second quarter of 2015
amounted to EUR 34.0 million and was thus 18 percent below the prior-year
quarter, which was an unusually strong period for the Group (Q2 2014: EUR
41.3 million). The EBIT margin amounted to 8.9 percent while the EBITDA
margin was posted at 13.3 percent (Q2/14: 12.6 percent and 17.3 percent).

Positive free cash flow expected for the year as a whole
At EUR 11.5 million, cash flow from operating activities for the first half
of the year was positive (H1/14: EUR 52.9 million). However, investment in
inventories had a key impact here. Discounting investments in working
capital, cash flow from operating activities amounted to EUR 87.4 million
(H1/14: EUR 84.2 million). The 19-percent increase in working capital since
the start of the year was attributable to rising demand and currency
effects. The investments in inventories were made to secure the Group's
delivery capabilities and to support its international expansion; the H1
level marks a working capital high and is forecasted to fall until end of
the year. Free cash flow came to EUR -43.2 million (H1/14: EUR 1.0
million). The Group expects free cash flow for the year as a whole to be
positive. 

Growth forecast for 2015 confirmed
The Group remains optimistic about the current year. "Our order books are
full and we expect the promising conditions in established markets to have
a positive impact on our business," continues Peksaglam. The Group expects
revenue for the year to range between EUR 1.40 and 1.45 billion, which
corresponds to a rise of between 9 and 13 percent relative to the previous
year. The EBIT margin should still be on target between 9.5 and 10.5
percent (2014: 10.6 percent). "Our plans to launch truly new and innovative
products to market together with continued stable business in the US,
initial signs of improvement in various crisis-hit countries and our
stronger services segment should all have a positive impact on Group
performance in the second half of 2015," concludes Peksaglam.

Table: Revenue and earnings

Key figures in EUR Million_Q2/15_Q2/14_Change_H1/15_H1/14_Change

Revenue_382.1_328.4_16.4 %_706.4_620.0_13.9 %
Gross profit margin as a %_29.1_30.7_-1.6 PP_29.4_30.1_-0.7 PP
EBITDA_50.8_56.8_-10.6 %_98.2_93.0_5.6 %
EBITDA margin as a %_13.3_17.3_-4.0 PP_13.9_15.0_-1.1 PP
EBIT_34.0_41,3_-17.7 %_65.7_63.4_3.6 %
EBIT margin as a %_8.9_12.6_-3.7 PP_9.3_10.2_-0.9 PP
EBT_32.3_39.8_-18.9 %_62.5_60.4_3.5 %
Total profit/loss for the period_23.9_28.2_-15.2 %_45.2_42.5_6.4 %
Earnings per share in EUR_0.34_0.40_ _0.64_0.61


Your contact at Wacker Neuson: 
Katrin Yvonne Neuffer
Head of Corporate Communication /
Investor Relations
Preussenstrasse 41 
80809 Munich 
Tel. +49-(0)89-35402-173
katrin.neuffer@wackerneuson.com 
www.wackerneusongroup.com

About the Wacker Neuson Group
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
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 over 4,500 people worldwide.



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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                                                      
Indices:     SDAX                                                        
Listed:      Regulated Market in Frankfurt (Prime Standard); Regulated   
             Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover,  
             Munich, Stuttgart                                           
 
 
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