DGAP-News: Wacker Neuson SE / Key word(s): Interim Report/Half Year
Results
Wacker Neuson SE: Wacker Neuson reports strong business development in
first half of 2012
09.08.2012 / 07:44
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Wacker Neuson reports strong business development in first half of 2012
Highest quarterly revenue, strong growth in the Americas, reaffirmation of
revenue forecast
(Munich, August 9, 2012) Munich-based light and compact equipment
manufacturer Wacker Neuson performed well in the first half of 2012. The
Group continues to expect double-digit revenue growth for 2012 as a whole
despite signs pointing to a slowdown in demand in Europe for the second
half of the year.
Above-average growth in the Americas in Q2 2012
The first quarter of 2012 proved a strong period for Wacker Neuson,
especially in its core markets of Europe and North America (EUR 274.0
million, increase of 29 percent on Q1 2011). Revenue continued to grow in
the second quarter, rising 7 percent on the prior-year quarter to EUR 284.2
million (Q2 2011: EUR 266.9 million). 'Demand in the European construction
and agricultural industries slowed during the second quarter, which
inevitably dampened revenue growth for this region,' explains Cem
Peksaglam, CEO of Wacker Neuson SE. 'By contrast, strong light and compact
equipment sales in the Americas pushed revenue in this region up 23 percent
on the previous year's quarter - a result that significantly exceeded our
expectations. This development confirms that a broader international
footprint enables us to absorb economic fluctuations more effectively.' One
event in particular impacted business in Europe during the second quarter,
when in May 2012, the Group started production of compact equipment
weighing up to 14 tons at its new research and development facility in the
Upper Austrian town of Hörsching. The relocation together with significant
changes to manufacturing processes delayed deliveries of compact equipment
and also caused process and logistics costs to rise. All of which dampened
revenue and earnings in the second quarter. Workflows have been returning
to normal levels as of July, and the Group expects to quickly work through
the backlog of orders.
Sharp rise in revenue in H1 2012
In the first six months of 2012, Group revenue was up 17 percent at EUR
558.1 million (H1 2011: EUR 478.7 million). Revenue generated by light
equipment products such as rammers, plates, rollers, light towers and
generators increased by 14 percent relative to the previous year. Revenue
in the compact equipment segment (including excavators, wheel loaders,
dumpers and skid-steer loaders) rose 23 percent on the previous year. This
segment also includes agricultural machinery, which reported a 28 percent
rise in revenue. The agricultural sector already accounts for 17 percent of
total Group revenue. Revenue in the services segment (spare parts,
maintenance, repairs and used equipment sales) rose by 8 percent.
Falling demand in Europe combined with the relocation of production
activities to the new facility in Hörsching squeezed profit. At EUR 76.1
million, profit before interest, tax, depreciation and amortization
(EBITDA) for H1 2012 was 6.3 percent higher than the previous year (H1
2011: EUR 71.6 million). This corresponds to an EBITDA margin of 13.6
percent (H1 2011: 15.0 percent). Profit before interest and tax (EBIT) came
to EUR 49.2 million (H1 2011: EUR 48.6 million), resulting in an EBIT
margin of 8.8 percent (H1 2011: 10.2 percent). Profit for the period after
tax and minority interests amounted to EUR 30.9 million in the first
half-year (H1 2011: EUR 31.5 million). At EUR 0.44, earnings per share
remained roughly on a par with the previous year (H1 2011: EUR 0.45).
Changes to the Executive Board
Wacker Neuson SE aims to unite its two product segments (light and compact
equipment) under single management in order to maximize synergies, in
particular with regard to international expansion. This will enable the
Group to further build on its market success. This strategy will also
result in certain changes at executive level. On September 30, 2012, Mr.
Richard Mayer will be withdrawing from his position as member of the
Executive Board of Wacker Neuson SE responsible for light equipment. Mr.
Mayer reached a mutual, amicable agreement with the Supervisory Board
providing for his early exit from the company.
Mr. Martin Lehner will take on responsibility for light equipment at
Executive Board level in addition to his current role as head of compact
equipment. Mr. Lehner has been with the company since 1987 and is also
Deputy CEO to Cem Peksaglam.
Aligning the two product segments under a single Executive Board member
will not affect segment reporting. The Group will continue to report
revenue according to the individual business segments of light equipment,
compact equipment and services.
Outlook and forecast for 2012
By diversifying its portfolio of products and services across additional
sectors and industries and expanding its international reach, the Group
expects to absorb any downturns in demand in individual countries or
regions more effectively. 'The increasing success of our active
cross-selling strategy across product segments provides positive proof that
Wacker Neuson is on the right path here. We remain committed to our goal of
exceeding the billion-euro revenue mark this year,' states Peksaglam.
The Group has reaffirmed its revenue forecast of around EUR 1.1 billion for
2012. In light of uncertainties surrounding European market developments as
well as the negative impact on revenue resulting from the relocation of
production activities, the Group now expects the EBITDA margin to level out
between 13 and 15 percent. At the start of the year, company management
predicted an EBITDA margin of at least 15 percent. In fiscal 2011, Wacker
Neuson reported revenue of EUR 991.6 million and an EBITDA margin of 16.4
percent.
Table: Revenue and earnings
|[![CDATA[|[pre|]]]|]
Indicators
in EUR million_Q2/2012_Q2/2011_Difference_H1/2012_H1/2011_Difference
Revenue_284.2_266.9_+6.5%_558.1_478.7_+16.6%
Gross margin as a %_29.5_32.6_-3.1PP_30.3_32.6_-2.3PP
EBITDA_37.3_45.7_-18.4%_76.1_71.6_+6.3%
EBITDA margin as a %_13.1_17.1_-4.0PP_13.6_15.0_-1.4PP
EBIT_22.8_33.7_-32.3%_49.2_48.6_+1.2%
EBIT margin as a %_8.0_12.6_-4.6PP_8.8_10.2_-1.4PP
EBT_20.8_32.8_-36.6%_45.6_46.7_-2.4%
Profit for the period_13.8_22.5_-38.7%_30.9_31.5_-1.9%
Earnings per share_0.20_0.32_-37.5%_0.44_0.45_-2.2%
|[![CDATA[|[/pre|]]]|]
Your contact partner:
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
The Wacker Neuson Group is a leading manufacturer of light and compact
equipment with over 40 affiliates and more than 140 sales and service
stations across the globe. Manufacturing activities are distributed across
three sites in Germany, one in Austria, a components manufacturing plant in
Serbia, two sites in the US and one in the Philippines. Products
manufactured by the company are branded Wacker Neuson. In Europe, the Group
also distributes compact equipment under the brand names Kramer Allrad and
Weidemann (agricultural machinery). With over 300 product categories and a
global spare parts service, Wacker Neuson is the partner of choice among
professional users in a wide range of industries including the
construction, gardening, landscaping and agriculture sectors, as well as
among municipal bodies and companies in the industrial, recycling and
energy sectors.
End of Corporate News
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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: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover,
München, Stuttgart
End of News DGAP News-Service
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181041 09.08.2012
DGAP-News: Wacker Neuson SE: Wacker Neuson reports strong business development in first half of 2012
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