07.08.2018
Wacker Neuson SE DE000WACK012
DGAP-News: Wacker Neuson SE: Wacker Neuson reports substantial increase in revenue and profitability
DGAP-News: Wacker Neuson SE / Key word(s): Half Year Results
Wacker Neuson SE: Wacker Neuson reports substantial increase in revenue and
profitability
07.08.2018 / 07:35
The issuer is solely responsible for the content of this announcement.
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Wacker Neuson reports substantial increase in revenue and profitability
Munich, August 7, 2018
- Revenue at record high
- Marked improvement in profit before interest and tax
- Bottlenecks among suppliers and currency developments have dampening
effect
- One-off earnings from the sale of a real-estate company
- Guidance for fiscal 2018 as a whole confirmed
New record revenue
The Wacker Neuson Group reported a marked rise in revenue and earnings
during the first six months of 2018. Revenue for the first half of 2018 rose
8 percent to a new record high of EUR 825 million (H1/17: EUR 764 million).
Adjusted for currency effects, this corresponds to an increase of 12
percent. Revenue growth was driven primarily by continued high levels of
demand in the construction market and strong performance in the European
agricultural sector. Bottlenecks among some suppliers prevented machines
from being completed for customer orders and this had a dampening effect.
Furthermore, unfavorable currency developments, in particular the US
dollar's weakness against the euro, resulted in negative translation
effects.
Growth across all regions
In Europe, which is the Group's largest sales market, revenue for the first
half of 2018 rose 8 percent to EUR 599 million (H1/17: EUR 556 million).
This region's share of Group revenue remained unchanged at 73 percent. "Our
strong performance in this region was fueled by a buoyant construction
market, positive development of our Kramer and Weidemann brands in the
agricultural sector and growth in our services segment, which includes our
maintenance and spare parts business," explains Martin Lehner, CEO of Wacker
Neuson SE.
Revenue for the Americas region rose 9 percent to EUR 202 million (H1/17:
EUR 185 million). The weak US dollar had a particularly strong impact in
this region. When adjusted for currency effects, revenue rose 21 percent. A
high level of investment activity among rental chains in North America and
strong sales of compact equipment had a positive effect on business. "Our
skid steer loaders manufactured in the US are key products in our compact
equipment portfolio, helping us to win more market shares in the region with
other products such as excavators and dumpers," adds Lehner.
Revenue in Asia-Pacific rose 4 percent to EUR 24 million (H1/17: EUR 23
million). The strong euro also squeezed growth figures here. Adjusted for
currency effects, revenue rose 11 percent.
Significant rise in profitability
Profit before interest and tax (EBIT) grew by a substantial 28 percent to
reach EUR 78 million in the first half year (H1/17: EUR 61 million). This
corresponds to an EBIT margin of 9.5 percent (H1/17: 8.0 percent). The rise
in revenue coupled with strict cost control measures and improvements to
internal processes had a positive impact here. Increased material prices had
a dampening effect, as did material bottlenecks among suppliers, which
disrupted workflows at production facilities. Productivity was also affected
by ongoing restructuring initiatives across US production plants and the
start of production at the new factory in Pinghu, China.
One-off earnings from the sale of a real-estate company held by the Group
In June 2018, Wacker Neuson SE sold a real-estate company with an industrial
property in Munich-Milbertshofen. The property was no longer required
following the construction of a new R&D center for light equipment in
Reichertshofen. The sale generated profit before tax of EUR 54.8 million.
This aligns with the expectations communicated by the Group in February
2017.
Guidance for 2018 confirmed
"Due to the current healthy situation on international construction and
agricultural markets, our most important target markets are intact and our
order books are well filled," continues Martin Lehner. The company has
confirmed its guidance for fiscal 2018 and expects revenue to rise by 8 to
11 percent to reach 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 to 10.0
percent. Uncertainties remain regarding the challenging situation with
suppliers and future exchange rate developments, especially in relation to
the US dollar.
Table: Revenue and earnings
Key figures in EUR million H1/18 H1/17 Change
Revenue 825.1 763.7 +8%
EBIT (adjusted)1 78.2 61.0 +28%
(78.2) (65.0) (+20%)
EBIT margin (adjusted)1 9.5% 8.0% +1.5
(9.5%) (8.5%) PP
(+1.0
PP)
Profit for the period 94.1 42.7 +120%
Earnings per share in EUR 1.34 0.60 +123%
1 Adjusted in H1/17 to reflect negative one-off
effects from value impairments of old inventory
and reorganization initiatives.
The half-year report is available at:
http://wackerneusongroup.com/en/investor-relations/financial-reports-presentations/.
Your contact partner:
Wacker Neuson SE
Christopher Helmreich
Manager Investor Relations
Preussenstrasse 41
80809 Munich, Germany
Tel. +49-(0)89-35402-427
[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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07.08.2018 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.
The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
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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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711399 07.08.2018
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