04.08.2016
Wacker Neuson SE DE000WACK012
DGAP-News: Wacker Neuson SE: Wacker Neuson cautious for H2 despite of a strong second quarter
DGAP-News: Wacker Neuson SE / Key word(s): Half Year Results/Quarter Results
Wacker Neuson SE: Wacker Neuson cautious for H2 despite of a strong second
quarter
04.08.2016 / 07:59
The issuer is solely responsible for the content of this announcement.
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Wacker Neuson cautious for H2 despite of a strong second quarter
(Munich, August 4, 2016) In the second quarter of 2016, leading
international light and compact equipment manufacturer the Wacker Neuson
Group almost equaled its record revenue from the prior-year quarter. In
light of increased market uncertainties and volatility for H2, the Group
revised its forecast for 2016.
Revenue in Q2 2016 almost matches previous year's record high
Group revenue for the second quarter of 2016 amounted to EUR 381.4 million
and was thus almost equal to the record figure reported the previous year
(Q2 2015: EUR 382.1 million). Adjusted to discount currency effects, this
corresponds to an increase of 2 percent. Second quarter revenue grew 21
percent relative to the first quarter of the year (Q1 2016: EUR 316.4
million).
"We have every reason to be satisfied with our performance in the second
quarter of 2016 in light of the ongoing crises in the agricultural and
energy sectors in our home markets of North America and Europe, as well as
increasing uncertainty in the UK, South Africa, Poland, Russia and Turkey,
coupled with the difficult situation in South America and Australia,"
explains Cem Peksaglam, CEO of Wacker Neuson SE." The Group generates a
large share of its revenue in Europe. Here, revenue for the second quarter
rose 6 percent compared with the previous year. Revenue in the Americas and
Asia-Pacific regions fell by 14 and 31 percent respectively compared with
the previous year.
Earnings before interest and tax (EBIT) remained almost unchanged from the
previous year at EUR 33.4 million (Q2 2015: EUR 34.0 million). The EBIT
margin amounted to 8.8 percent (Q2 2015: 8.9 percent). Profitability was
thus significantly higher than in the first quarter of 2016, when the EBIT
margin amounted to 5.5 percent. Profitability was bolstered by the rise in
revenue relative to the first quarter (+21 percent).
First quarter results impact half-year profit
In the first half of the year, Group revenue came to EUR 697.8 million (H1
2015: EUR 706.4 million). Performance across the business segments varied
significantly. At 52 percent, the compact equipment segment accounted for
the lion's share of revenue. At the close of the first six months, revenue
for the segment was at the same level as the prior-year period. In
contrast, light equipment revenue fell 5 percent and accounted for 29
percent of Group revenue. Revenue for the services segment, which includes
the Group's repair and spare parts business, increased 3 percent compared
with the prior-year quarter. This segment thus accounted for 19 percent of
revenue.
Primarily due to the fall in earnings in the first quarter of 2016, EBIT
decreased 23 percent in the first half relative to the previous year to
reach EUR 50.7 million, which placed the EBIT margin at 7.3 percent (H1
2015: EUR 65.7 million; 9.3 percent). The crises in the energy and
agricultural sectors in particular are having a negative impact on
earnings, not least because they are causing a strong shift in Wacker
Neuson's regional and product mix. Profit for the period came to EUR 33.8
million in the first half-year (H1 2015: EUR 45.2 million). This
corresponds to earnings per share of EUR 0.48 (H1 2015: EUR 0.64).
Improved cash flow
Cash flow from operating activities amounted to EUR 35.7 million in the
first six months of the year and was thus considerably higher than the
prior year (H1 2015: EUR 11.5 million). Working capital fell 6 percent
relative to the previous year. This was primarily due to the planned
reduction of inventory by 10 percent. Free cash flow came to EUR -24.5
million (H1 2015: EUR -43.2 million). The company expects free cash flow
for 2016 to be positive.
Internationalization is a cornerstone of Group strategy
The Group opened its assembly plant in Itatiba, São Paulo (Brazil) in
April. The facility is manufacturing mobile generators for the regional
market, currently at a small scale. In June, the Group signed agreements
for the construction of a new production facility in China. The site is
located in the city of Pinghu, around 30 km from Shanghai. Compact
excavators will be manufactured for the local market from 2018 onwards.
Forecasts for 2016 adjusted
Many recent political and economic events have created considerable
uncertainty and volatility on global markets. "These challenging market
conditions are having a significant impact on our customers across the
globe and require exceptional initiative and flexibility from us," adds
Peksaglam. "High volatility and growing uncertainties in the ag
and construction business, increased risks in some European markets and the
persistent market weaknesses in North America and Australia, forced us to
lower our expectations for the second half", explains Peksaglam.
In light of these developments, the Executive Board has lowered its
forecast for the year as a whole. It now expects revenue to amount to
between EUR 1,375 and EUR 1,425 million (previously: EUR 1,400 to 1,450
million) and the EBIT margin to move between 6.5 and 7.5 percent
(previously: 7.0 and 8.0 percent). The Group has earmarked around EUR 100
million in total for investments throughout fiscal 2016 (2015: EUR 118
million).
The complete half-year report is available online at
http://wackerneusongroup.com/en/investor-relations/financial-reports-
presentations/2016/.
Table: Revenue and earnings
Key figures in EUR Million_Q2/16_Q2/15_Changes_H1/16_H1/15_Changes
Revenue_381.4_382.1_-0.2%_697.8_706.4_-1.2%
EBIT_33.4_34.0_-1.8%_50.7_65.7_-22.8%
EBIT margin as a %_8.8_8.9_-0.1PP_7.3_9.3_-2.0PP
Profit for the period_22.6_23.9_-5.4%_33.8_45.2_-25.2%
Earnings per share in EUR_0.32_0.34_-5.4%_0.48_0.64_-25.2%
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
[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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04.08.2016 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.wackerneusongroup.com
ISIN: DE000WACK012
WKN: WACK01
Indices: SDAX
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover,
Munich, Stuttgart, Tradegate Exchange
End of News DGAP News Service
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