Upgraded forecast from Wacker Neuson

Strong nine month results have prompted light equipment manufacturer Wacker Neuson to raise its full-year expectations for 2014.

Revenue for the nine months between January and September increased 9% year-on-year to €936 million, while earnings before interest and tax (EBIT) jumped 55% to €104 million.

CEO Cem Peksaglam said the compact equipment segment was a key revenue driver. “Revenue from this segment grew 17% in the first nine months of the year, and by an impressive 25% in the third quarter.

“Our strategy to expand our international footprint and diversify our target markets also boosted our performance here,” he added.

The light equipment segment reported a rise in revenue of 0.2% for the nine-month period – a result which Wacker Neuson said had been squeezed by the strong Euro and falling demand in key markets.

Forecast

The company said it expected the positive trends it saw in the first nine months of 2014 to continue.

It revised its profit forecast upward and said it now expected to report an earnings before interest, tax depreciation and amortisation (EBITDA) margin of between 14.5% and 15.5% (previously between 13% and 14%), and an EBIT margin of between 10% and 11% (previously between 8% and 9%).

The revenue forecast remained the same at between €1.25 and €1.30 billion. In 2013, the manufacturer reported revenues of €1.16 billion.