10.11.2016
Wacker Neuson SE DE000WACK012
DGAP-News: Wacker Neuson SE: Wacker Neuson improves earnings in Q3 2016 despite challenging environment
DGAP-News: Wacker Neuson SE / Key word(s): Quarter Results/9-month figures
Wacker Neuson SE: Wacker Neuson improves earnings in Q3 2016 despite
challenging environment
10.11.2016 / 07:46
The issuer is solely responsible for the content of this announcement.
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Wacker Neuson improves earnings in Q3 2016 despite challenging environment
(Munich, November 10, 2016) Leading international light and compact
equipment manufacturer, the Wacker Neuson Group, saw revenue and earnings
for the third quarter of 2016 increase relative to the previous year.
Viewed over a nine-month period, revenue remained at the prior-year level,
balancing out the drop in earnings experienced during the first half of the
year only partly.
Trends during the third quarter of 2016
Despite adverse market factors, including ongoing crises in many emerging
markets and key industries such as the agricultural sector, the oil and gas
industry and mining, Group revenue for the third quarter of 2016 rose 2
percent relative to the previous year to reach EUR 315.7 million (Q3/15:
EUR 311.0 million). Adjusted to discount currency effects, this corresponds
to an increase of 3 percent.
Revenue in the core market of Europe increased by 9.0 percent in the third
quarter of the year. This was primarily driven by stable demand from the
construction sector in German-speaking countries as well as in France,
Denmark, Sweden and the Benelux countries. In contrast, revenue in the
Americas decreased by 15 percent. In North America, demand for new
equipment is being dampened by high inventory levels among dealers and
rental chains plus large volumes of used equipment circulating on the
market at low prices. Despite growth in China, the Group experienced
falling demand in Australia and New Zealand. Revenue decreased by 23
percent in the Asia-Pacific region.
Earnings before interest and tax (EBIT) for the third quarter of 2016
increased 25 percent to EUR 19.3 million (Q3/15: EUR 15.5 million). The
EBIT margin rose to 6.1 percent (Q3/15: 5.0 percent). At EUR 12 million,
profit for the period was higher than in the previous year (Q3/15: EUR 8.5
million). Earnings per share rose 42 percent to EUR 0.17 (Q3/15: EUR 0.12).
Here it should be noted that revenue and earnings for the prior-year period
were quite low by comparison. Weak demand in the agricultural sector
together with the oil and gas crisis plus unfavorable currency effects
negatively impacted results in Q3 2015.
Trends during the first nine months of 2016
At the close of the first nine months of the year, Group revenue amounted
to EUR 1,013.5 million and thus almost remained at the prior-year level
(9M/15: EUR 1,017.4 million). A number of key factors impacted earnings for
the first nine months of 2016, including a weak first quarter and a
significant change in our regional and product mix. During this period,
EBIT decreased by 14 percent relative to the previous year to reach EUR 70
million and the EBIT margin narrowed to 6.9 percent (9M/15: EUR 81.2
million; 8.0 percent). Profit for the period amounted to EUR 45.8 million
(9M/15: EUR 53.7 million). This corresponds to earnings per share of EUR
0.65 (9M/15: EUR 0.77).
Despite economic headwinds, the Group remains committed to its strategic
direction. "2016 is undoubtedly a year of transition for the Group, during
which we have optimized processes and structures and also laid the
foundation for future growth," explains CEO Cem Peksaglam. "For example, we
continued to expand our international footprint by establishing new
production sites in Brazil and, in future, also China. We consolidated the
different spare parts services at our compact equipment production
facilities in Europe to create a central warehouse in Nuremberg and also
merged our R&D center for light equipment from Munich with our production
site in Reichertshofen. In addition to this, we launched our eCommerce
platform. And at this year's bauma fair in Munich, the world's largest
construction industry tradeshow, we again sent a strong signal to the
industry with new models in our zero-emission product line. We are
strengthening our organizational and execution capabilities so we can more
effectively master growing global challenges over the coming years," adds
Peksaglam.
Improved cash flow
Cash flow from operating activities amounted to EUR 94.3 million in the
first nine months of the year and was thus significantly higher than the
prior-year figure (9M/15: EUR 52.8 million). Working capital fell 7 percent
relative to the previous year. This was primarily due to the planned
reduction of inventory by 13 percent. Free cash flow came to EUR 10.2
million (9M/15: EUR -28.4 million).
Revenue and earnings at lower end of forecast
"Levels of uncertainty and volatility remain high in our markets. Business
in North and South America, which account for 21 percent of our Group
revenue, developed below our expectations as did markets in Australia and
Africa. However, we expect Europe to remain a robust sales region overall,"
continues Peksaglam. The company expects revenue and earnings for fiscal
2016 to come in at the lower end of its published forecast (revenue of
between EUR 1,375 million and EUR 1,425 million; EBIT margin between 6.5
and 7.5 percent). It has earmarked around EUR 120 million in total for
investments for fiscal 2016 (2015: EUR 118 million). Free cash flow is
expected to be positive.
The full quarterly report is available online at http://
wackerneusongroup.com/en/investor-relations/financial-reports-
presentations/
Table: Revenue and earnings
Key figures Q3/16 Q3/15 Change 9M/16 9M/15 Change in EUR million Revenue 315.7 311.0 1.5% 1,013.5 1,017.4 -0.4% EBIT 19.3 15.5 24.5% 70.0 81.2 -13.8% EBIT margin as a 6.1 5.0 1.1 PP 6.9 8.0 -1.1 PP % Profit for the 12.0 8.5 41.2% 45.8 53.7 -14.7% period Earnings per 0.17 0.12 41.7% 0.65 0.77 -15.6% share in EURYour 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. --------------------------------------------------------------------------- 10.11.2016 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. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de --------------------------------------------------------------------------- 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 --------------------------------------------------------------------------- 519133 10.11.2016
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