Munich-based compact equipment manufacturer Wacker Neuson has reported record revenue growth in its full-year financial results for 2019.
The group, which also manufactures agricultural equipment, said its performance had been good across all regions and business segments, adding that it had seen positive trends in both European and North American construction markets.
Wacker Neuson’s most important market – accounting for 72.5% of its total revenue – is Europe, which saw growth in revenue of 10.4%, to €1.38 billion.
Although the group’s full-year revenues reached €1.9 billion (a rise of 11.2% from the previous year), it did report a drop in its EBIT (earnings before interest and tax) to 8.1% for the same period (down 1.4 percentage points).
It said profitability had been negatively impacted by its efforts to streamline inventory, as well as the implementation of a restructuring strategy in North America.
The company also pointed to its ongoing efforts to reduce costs and improve efficiency and the far-reaching although as yet unquantifiable effects of the spread of the Covid-19 coronavirus.
Martin Lehner, CEO of Wacker Neuson SE, said, “Last year, we once again managed to gain shares in many markets – challenging markets included – thanks to our innovative product developments. “Strong demand for our products confirms that we are in tune with our customers’ needs and that our services resonate strongly with the market.”
Wilfried Trepels, CFO of Wacker Neuson SE, said, “We are not satisfied with the development of our profit figures. The program that has now been approved will help improve Group profitability sustainably and enable us to achieve the goals set out in our Strategy 2022.”