15.03.2016
Wacker Neuson SE DE000WACK012
DGAP-News: Wacker Neuson SE: Fiscal 2015 was another year of revenue growth for Wacker Neuson
DGAP-News: Wacker Neuson SE / Key word(s): Final Results/Forecast
Wacker Neuson SE: Fiscal 2015 was another year of revenue growth for Wacker
Neuson
15.03.2016 / 09:59
The issuer is solely responsible for the content of this announcement.
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Fiscal 2015 was another year of revenue growth for Wacker Neuson
(Munich, March 15, 2016) The Munich-based international light and compact
construction equipment manufacturer again reported growth in revenue for
fiscal 2015, despite difficult market conditions. The company's profit
levels, however, were affected by crises in key industries and regions. The
company has issued a cautious revenue and earnings forecast for 2016.
Revenue for 2015 climbs to EUR 1.38 billion
Despite difficult market conditions, the Wacker Neuson Group reported
revenue of EUR 1.38 billion for 2015. This is a rise of 7 percent relative
to the previous year (2014: EUR 1.28 billion). When adjusted to discount
currency effects, revenue grew by 3 percent.
Business performance in 2015 mirrored the high levels of volatility that
shaped various industries. During the first half of the year, revenue
developed very positively, growing 14 percent relative to the previous
year. However, the situation declined markedly in the second half of the
year, with revenue just 0.7 percent higher than the prior-year level.
The continued slump in the raw materials industry negatively impacted key
sales markets for the Group in Brazil, Chile, Russia, South Africa, Canada,
the US and Australia. "The oil and gas industry is currently facing an
existential crisis and many companies have already been forced to cease
operations. This is an important sector for us in North America. The crisis
has been largely triggered by the squeeze on oil prices, which dropped to a
ten-year low, making it impossible for companies to cost-effectively
extract raw materials in this region," explains Cem Peksaglam, CEO of
Wacker Neuson SE.
The downturn in the agricultural equipment sector left its mark on the
compact equipment segment. "During the first half of 2015, we were able to
buck the trend and remain on a growth path. By the second half of the year,
however, our agricultural business in Europe with wheel loaders, telescopic
handlers and tele wheel loaders contracted sharply," continues Peksaglam.
This was mainly due to the drop in prices for milk and other agricultural
products, which are currently at a six-year low and, as a result, are
dampening willingness to invest amongst agricultural landholders.
Nevertheless, the compact equipment segment again proved to be the main
growth driver in 2015, with revenue increasing by 15 percent. Revenue from
light equipment was one percent below the prior-year figure. When adjusted
to discount currency effects, it actually contracted by 9 percent. In the
services segment, which includes the service and spare parts business,
revenue grew by 4 percent. Compact equipment accounted overall for around
50 percent of Group revenue, light equipment for 30 percent and the
services segment for 20 percent.
Profitability trends
Earnings were negatively impacted by the situation in crisis-hit emerging
markets and industries as well as by increasing pressure on prices and
margins. Profit before interest and tax (EBIT) decreased by 24 percent to
EUR 103.6 million. The EBIT margin dropped to 7.5 percent (previous year:
EUR 136.2 million; 10.6 percent). The Group managed to meet its forecast,
which it had revised downwards in October (revenue: EUR 1.35 to 1.40
billion; EBIT margin: 7 to 8 percent).
At EUR 171.3 million, profit before interest, tax, depreciation and
amortization (EBITDA) for the period under review fell by 12.7 percent
relative to the previous year. The EBITDA margin was posted at 12.5 percent
(2014: EUR 196.3 million; 15.3 percent). Profit for the period amounted to
EUR 66.2 million (2014: EUR 91.5 million). Net earnings per share came to
EUR 0.94 (2014: EUR 1.30).
The Group is focusing more than ever on strict cost controls, targeted cost
optimization programs and process efficiency gains. "In the medium term, we
expect to achieve annual cost savings in the double-digit million range as
a result of procurement synergies, centralized logistics processes, a
strong focus on lean management and standardization across all areas of the
business," highlights Peksaglam. "We will also be leveraging our
aftermarket business to develop revenue and earnings potential," he adds.
Dividends
As in the previous year, management will propose a dividend in the amount
of EUR 0.50 per share to shareholders at the Annual General Meeting,
scheduled for May 31, 2016 in Munich. This figure corresponds to a total
payout of EUR 35.1 million, which, in turn, represents a payout ratio of 53
percent. "This reflects our confidence in our earnings potential and in the
success of our corporate strategy," continues Peksaglam.
Cautious outlook for 2016
Despite cautious expectations for 2016, the Group aims to remain on its
expansion path. "Unfortunately, the weak growth in Q4 2015 continued into
the first weeks of 2016. The agricultural and energy sectors are still
distressed and we do not expect this situation to improve permanently in
the coming months," elaborates Peksaglam. "In North America, we do not
expect to see any significant growth impetus until the second half of the
year at the earliest due to the oil and gas crisis, which is having a
negative impact on the light and compact construction equipment business.
In Europe, the picture for 2016 is more positive for us, at least in the
construction sector. Current order intake for compact equipment is
promising here."
The Group expects revenue for 2016 to amount to between EUR 1.40 and EUR
1.45 billion (which corresponds to revenue growth of 2 to 5 percent
relative to the previous year). The EBIT margin is expected to lie within a
range of 7 to 8 percent (same as the previous year). Furthermore, the Group
has earmarked around EUR 100 million for investments (2015: EUR 118
million).
The company will be showcasing a wealth of new products and innovations for
customers and business partners in Munich this April at bauma, the world's
largest construction industry tradeshow. Highlights will include
alternative drive technologies, including zero-emissions products such as
the new electric track dumper from Wacker Neuson and the electric wheel
loader from Kramer.
The Group aims to continue on its growth path by intensifying cross-selling
activities across business segments, further expanding profitable lines of
business and widening its international footprint.
Table: Revenue and earnings
Key figures in EUR million_FY 2015_FY 2014_Changes_Q4 2015_Q4 2014_Changes
Revenue_1,375_1,284_7.1%_358_348_2.8%
EBIT_104_136_-23.9%_22_33_-31.4%
EBIT margin as a %_7.5_10.6_-3.1PP_6.3_9.4_-3.1PP
Total profit/loss for the period (after minority
interests)_66.2_91.5_-27.7%_12.4_22.5_-44.9%
Your contact partner:
Wacker Neuson SE
Katrin Yvonne Neuffer
Head of Corporate Communication /
Investor Relations
Preussenstrasse 41
80809 Munich, Germany
Phone: +49-(0)89-35402-173
[email protected]
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
portfolio of products, a wide range of services and an efficient 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, energy and rail transport. In 2015, the Group achieved
revenue of EUR 1.38 billion, employing over 4,600 people worldwide.
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15.03.2016 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
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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: [email protected]
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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