08.05.2018
Wacker Neuson SE DE000WACK012
DGAP-News: Wacker Neuson SE: Record revenue for Wacker Neuson in Q1/18
DGAP-News: Wacker Neuson SE / Key word(s): Quarterly / Interim Statement
Wacker Neuson SE: Record revenue for Wacker Neuson in Q1/18
08.05.2018 / 07:58
The issuer is solely responsible for the content of this announcement.
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Record revenue for Wacker Neuson in Q1/18
Munich, May 8, 2018
- Revenue rises to record high
- Significant increase in EBIT
- Financing for "Strategy 2022" secured
- Guidance for 2018 confirmed
New record high for revenue in Q1/18
The Wacker Neuson Group started the year strong with revenue for the first
quarter of 2018 increasing by more than 9 percent to EUR 371 million (Q1/17:
EUR 339 million). All regions and business segments reported a rise in
revenue. This growth was primarily driven by continued rising demand in
European and North American construction markets as well as strong
performance from the Weidemann and Kramer brands in the agricultural sector.
When adjusted for currency effects, revenue increased at an even faster pace
of 14 percent relative to the previous year. Negative currency developments,
in particular the US dollar's weak performance against the euro, resulted in
translation effects, which impacted revenue in the amount of EUR -16
million. The current strained situation among some suppliers is proving a
challenge for manufacturers of construction and agricultural equipment, with
bottlenecks among suppliers delaying deliveries to customers.
Europe is the largest market for the Group, accounting for 72 percent of its
business. Revenue for this region rose 8 percent to EUR 268 million in the
first quarter of 2018 (Q1/17: EUR 248 million). Revenue for the Americas
grew at an even faster pace than in Europe, increasing 13 percent to EUR 92
million (Q1/17: EUR 81 million). Adjusted for currency effects, this
corresponds to a rise of 29 percent. "In the US, we benefited from a number
of trends including increased investments from rental chains stocking up on
worksite technology such as generators and heaters. Our performance was also
bolstered by strong sales of our US-produced skid steer loaders," explains
Martin Lehner, CEO of Wacker Neuson SE. Revenue for the Asia-Pacific region
rose 16 percent to EUR 11 million (Q1/17: EUR 10 million). Adjusted for
currency effects, this corresponds to a rise of 26 percent. Growth was
particularly strong in China, where the Group started series production of
mini excavators in January 2018.
Earnings significantly higher than previous year
Profit before interest and tax (EBIT) grew markedly by 61 percent to EUR 23
million in the first quarter (Q1/17: EUR 14 million). This corresponds to an
EBIT margin of 6.2 percent (Q1/17: 4.2 percent). The rise in revenue and an
improved cost structure had a positive impact on earnings. However, profit
was also dampened by a more unfavorable regional and product mix and
production delays.
Price adjustments for light and compact equipment
Increased raw material prices, higher personnel and transport costs as well
as new environmental, health and safety regulations for equipment have
driven up costs for the Group. The company remains committed providing its
renowned product and service quality at fair prices. To maintain its
capabilities here, the Group will be increasing sales prices across all
product segments and Group brands as of July 1, 2018. Thanks to its ongoing
measures to streamline internal processes, the Group is only passing on part
of the increase in costs to its customers.
Financing for "Strategy 2022" secured
At the end of March 2018, Wacker Neuson secured its financing for the medium
term. "We successfully placed a promissory note in the amount of USD 100
million in the US and agreed on medium-term credit lines totaling EUR 75
million with three banks. This provides us with the funds we need to finance
our growth strategy," explains Wilfried Trepels, CFO.
Guidance for 2018 confirmed
"In April, we presented a host of new products and innovations to our
customers and business partners at INTERMAT in Paris, which is this year's
largest construction industry trade show. The mood across the industry is
very positive," says Martin Lehner. Wacker Neuson generated a huge amount of
interest with its new electric excavators and vibratory plates, which round
off the company's fully electric offering for urban construction sites. With
its zero emission line, Wacker Neuson is the first manufacturer worldwide to
deliver an end-to-end product portfolio that supports the entire
construction workflow on smaller sites without releasing any emissions while
keeping noise levels to an absolute minimum.
The company has confirmed its guidance for fiscal 2018 and expects revenue
to rise by 8 to 11 percent to between EUR 1.65 and EUR 1.70 billion (2017:
EUR 1.53 billion). The target corridor for the EBIT margin remains at 9.0
and 10.0 percent. The situation with suppliers and future exchange rate
developments, however, remains uncertain, especially with regard to the US
dollar.
The Executive Board and the Supervisory Board will propose a dividend of EUR
0.60 per share at the Annual General Meeting on May 30, 2018. This is an
increase of 10 cents compared with the previous year.
Table: Revenue and earnings
Key figures in EUR million Q1/18 Q1/17 Change
Revenue 370.5 338.5 +9.5%
EBIT (adjusted)1 23.0 14.3 +60.8%
(23.0) (16.3) (+41.1%)
EBIT margin (adjusted)1 6.2% 4.2% +2.0PP
(6.2%) (4.8%) (+1.4PP)
Profit for the period 14.6 9.3 +57.0%
Earnings per share in EUR 0.21 0.13 +61.5%
1 Adjusted in Q1/17 for a negative one-off
effect resulting from changes to the Executive
Board.
The quarterly report for Q1/18 is available at
http://wackerneusongroup.com/en/investor-relations/financial-reports-presentations/.
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
About Wacker Neuson
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 2017, the Group achieved revenue of
EUR 1.53 billion, employing more than 5,500 people worldwide.
www.wackerneusongroup.com
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08.05.2018 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 - 173
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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