Record revenue figures have been reported by Wacker Neuson for the second quarter of 2017, along with improved profitability.
The German-based light and compact equipment manufacturer said that bolstered by a positive outlook for the second half of 2017, it had raised its revenue forecast for the current fiscal year.
It reported what it claimed was record revenue of €425.2 million for the second quarter – an increase of 11% over the same period last year when it was €381.4 million. Earnings before interest and tax (EBIT) was €46.7 million, a rise of 41% compared with the previous year’s €33.2 million.
Revenue for the first half of the year climbed 9% to €763.7 million – it was €697.8 million for the first half on 2016. EBIT increased by 20% to €61.0 million
In its largest market, Europe, which Wacker said currently accounted for around 73% of revenue, it reported a 6% rise in revenue compared to the previous year.
Revenue gains were higher in the Americas.
Cem Peksaglam, the Wacker Neuson’s CEO who is leaving the company this month, to be replaced by Martin Lehner, said, “We reported a 32% rise in revenue in North and South America for the second quarter and an increase of 23% for the first six months of the year.
“We are particularly pleased to see strong growth in compact equipment, especially with our skid steer loaders, wheeled loaders and telescopic handlers. We have also made further progress on expanding our dealer network.”
He added that the light equipment business was developing strongly at the moment.
“Worksite technology is leading the way here,” he said, “with products such as generators and light towers performing especially well in North America. We are also seeing strong results from compaction technology, in particular with products connected to our alliance with Hamm.”
In contrast, the group reported a drop in revenue in Asia-Pacific, where the share of total revenue was approximately 3%.
It claimed the decrease in revenue in this region was linked primarily to a one-off effect in the first quarter of 2016 involving dealers in China stocking up on compact equipment, which increased the baseline for comparisons.
Business in Australia and New Zealand showed double-digit revenue growth for the first half of 2017. Wacker reported that in the second quarter of 2017, revenue increased by 65% in Asia-Pacific.
The company said it was making good progress on its new factory near Shanghai, China.
“Reflecting our strategy to extend our international reach, we recently entered into two long-term distribution partnerships,” said Peksaglam. “In South Korea, we have teamed up with Everdigm, a manufacturer of construction equipment, mining equipment and special vehicles, while in Japan, we have started a distribution partnership with Iseki, one of the largest agricultural equipment manufacturers for tractors, agricultural machines and gardening equipment.”
Peksaglam added, “We are positive about the second half of 2017 due to the healthy order situation and positive mood across all key markets.
“In Europe, we expect the construction industry to continue on its positive growth path and demand in the agricultural sector to rise. In the Americas, we expect the strong performance of the first six months to continue, fueled in particular by business with compact equipment.”