Wacker Neuson reports strong business development in first half of 2012

Wacker Neuson reported strong performance in the first two quarters of 2012. The group expects double-digit revenue growth for 2012 as a whole, despite signs pointing to a slowdown in demand in Europe for the second half of the year.

In the first quarter of 2012, Wacker Neuson saw an increase of 29 percent on the first quarter 2011, amounting to about $336 million. In the second quarter, the group saw a 7-percent rise on the prior-year quarter to nearly $349 million; it had been almost $328 million in the first quarter of 2011.

Wacker Neuson experienced a delay in deliveries of compact equipment as well as a rise in process and logistics costs, which the company says has dampened revenue and earnings in the second quarter. The group points to the relocation of its new research and development facility in Hörsching, Austria, as the cause; the facility began production of compact equipment weighing up to 14 tons in May. Despite the slowdown in revenue and earnings, the group has seen workflows have returning to normal levels as of July. The company expects to quickly work through the backlog of orders.

In the first six months of 2012, Wacker Neuson’s revenue was up 17 percent at $685.23 million, compared to the previous year’s $587.74 million. Revenue generated by light equipment products such as rammers, plates, rollers, light towers and generators increased by 14 percent relative to the previous year. Revenue in the compact equipment segment, which includes excavators, wheel loaders, dumpers and skid-steer loaders, rose 23 percent on the previous year; this segment also includes agricultural machinery, which reported a 28 percent rise in revenue. Revenue in the services segment, which includes spare parts, maintenance, repairs and used equipment sales, rose by 8 percent.

At $93.43 million, profit before interest, tax, depreciation and amortization (EBITDA) for the first half of 2012 was 6.3 percent higher than the previous year’s $87.91 million. This corresponds to an EBITDA margin of 13.6 percent, compared to the first half of 2011 with 15 percent. Profit before interest and tax (EBIT) was $60.40 million, compared to the previous year’s $59.67 million, resulting in an EBIT margin of 8.8 percent, compared to the first half of 2011, which was 10.2 percent. Profit for the period after tax and minority interests amounted to $37.93 million in the first half-year, compared to the previous year’s $38.67 million. At $0.54, earnings per share remained roughly on a par with the previous year’ $0.55.

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In other company news, Wacker Neuson has made changes to the executive board. On September 30, Richard Mayer will be withdrawing from his position as member of the Executive Board of Wacker Neuson SE responsible for light equipment.

Martin Lehner will take on responsibility for light equipment at Executive Board level in addition to his current role as head of compact equipment. He has been with the company since 1987 and is also deputy CEO to Cem Peksaglam.

Aligning the two product segments under a single Executive Board member will not affect segment reporting. The group will continue to report revenue according to the individual business segments of light equipment, compact equipment and services.