12.11.2015
Wacker Neuson SE DE000WACK012
DGAP-News: Wacker Neuson SE: Wacker Neuson Group maintains course despite difficult market conditions
DGAP-News: Wacker Neuson SE / Key word(s): 9-month figures/Forecast
Wacker Neuson SE: Wacker Neuson Group maintains course despite
difficult market conditions
12.11.2015 / 07:26
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Wacker Neuson Group maintains course despite difficult market conditions
(Munich, November 12, 2015) Global light and compact equipment manufacturer
the Wacker Neuson Group has reported revenue in excess of EUR 1 billion for
the first nine months of 2015, an increase relative to the same period last
year and a record high. In light of the marked downturn in key markets in
the third quarter, the company revised its forecast for 2015 downwards.
However, it still expects to achieve record revenue levels in 2015.
Revenue growth over first nine months of 2015, slowdown in the third
quarter
Group revenue for the first nine months of 2015 rose 8.7 percent relative
to the prior-year period to reach EUR 1.017,4 million (9M 2014: EUR 936.2
million). "Bolstered above all by strong performance over the first six
months of the year, this is a good figure in light of the difficult
conditions that are affecting the construction equipment industry as a
whole," explains Cem Peksaglam, CEO of Wacker Neuson SE.
Demand for light equipment in the raw material and energy sectors declined
at an unexpectedly sharp rate in the third quarter. "Raw material prices
are extremely low at present, making it almost impossible for companies to
extract oil and gas profitably in North America. This has brought the
industry more or less to a standstill. Difficult market conditions in South
America compounded the situation here. In addition, declining demand in the
European agricultural equipment sector together with disappointing levels
of demand in markets such as France, Russia and Australia had an
unexpectedly strong impact on our business," continues Peksaglam. As a
result, Group revenue for Q3 2015 was 1.6 percent lower than the prior-year
figure at EUR 311.0 million (Q3 2014: EUR 316.2 million). At EUR 107.2
million, revenue from the light equipment segment increased 1.2 percent
compared with the previous year. When adjusted to discount currency
effects, however, this figure was below last year's figure. Revenue from
the compact equipment segment amounted to EUR 136.4 million, which is a
decrease of 5.4 percent. Revenue for the services segment, which includes
the Group's spare parts business, increased 4.3 percent relative to the
prior-year quarter.
The industries in which the Wacker Neuson Group distributes its products
and services can be volatile. The fall in revenue in the third quarter was
primarily influenced by external factors and had a negative impact on cost
ratios. Profit before interest and tax (EBIT) for the third quarter fell
61.3 percent to EUR 15.5 million (Q3 2014: EUR 40.1 million). This
corresponds to an EBIT margin of 5.0 percent (Q3 2014: 12.7 percent). It
should be noted, however, that the prior-year quarter was an unusually
strong period for revenue and earnings. Major orders, an advantageous
regional and product mix and clearly favorable currency gains positively
influenced the Group's performance here. In contrast, currency gains
declined markedly in the third quarter of 2015. "The strong US dollar made
exports from our two production sites in the US more expensive. This had a
negative effect on our profit levels. Profitability in South America,
especially in Brazil, developed unfavorably under the pressure of the
escalating local crises. The sharp depreciation in local currencies in
recent months had a clear impact on revenue and earnings," adds Peksaglam.
EBIT for the first nine months of the year declined 21.5 percent to EUR
81.2 million (9M 2014: EUR 103.5 million). The EBIT margin amounted to 8.0
percent (9M 2014: 11.1 percent).
Focus on medium-term growth
The Group is taking action to counter the current market squeeze. "As part
of our day-to-day approach to business, we are firmly committed not only to
strict cost control, but also to targeted implementation of
cost-optimization programs and further improvements in the quality and
efficiency of processes across all areas of the company. We systematically
analyze and leverage synergies and potential for improvement," assures
Peksaglam. All of these initiatives are already paying dividends and will
have an even more positive impact on earnings when markets recover.
Annual forecast for 2015
The Group recently adjusted its forecast for the current year as a result
of these latest business developments. It expects Group revenue to amount
to between EUR 1.35 and 1.40 billion (2014: EUR 1.28 billion) and the EBIT
margin to range between 7.0 and 8.0 percent (2014: 10.6 percent). The Group
has implemented measures to reduce inventory.
The company plans to announce its forecast for the coming year in March
2016 when it publishes its results for 2015.
Table: Revenue and earnings
Key figures in EUR Million_Q3/15_Q3/14 Change (adjusted for currency
effects)_9M/15_9M/14_Change (adjusted for currency effects)
Revenue_311.0_316.2_-1.6% (-4.4%)_1,017.4_936.2_8.7 % (4.0 %)
EBIT_15.5_40.1_-61.3%_81.2_103.5_-21.5%
EBIT margin as a %_5.0_12.7_-7.7 PP_8.0_11.1_-3.1 PP
Total profit/loss for the period (after minority
interests)_8.5_26.5_-67.9%_53.7_69.0_-22.2 %
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
About the Wacker Neuson Group
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, global
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 and energy. In 2014, the Group achieved revenue of EUR
1.28 billion, employing over 4,500 people worldwide.
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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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412065 12.11.2015
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