Revenues up at Wacker Neuson

Construction equipment manufacturer Wacker Neuson reported a 5% year-on-year increase in revenues for the first six months of 2013 to €586.1 million, but net profit fell nearly 20% to €24.9 million.

The company said strong second quarter results had been offset to some extent by the weak start it reported for first three months of the year.

Wacker Neuson CEO Cem Peksaglam explained, “2013 got off to a slow start due to sluggish economies in many target markets and poor weather conditions in the northern hemisphere. In the second quarter, however, our revenue rose 28% on the first quarter to a new record high for the company.”

Second quarter revenues jumped 16% year-on-year to €329 million on net profit of €18.5 million, up 35% compared to the same three months last year. The company said its light equipment segment saw a 12% increase in sales, while revenues from compact equipment such as excavators, wheeled loaders, dumpers and skid steer loaders were up 19%. The services segment reported a 14% rise in revenue for the second quarter.

Mr Peksaglam added, “Despite a significantly more intensive competitive landscape, we were able to successfully maintain, and in some cases expand, our position. Our ability to adapt to dynamically changing markets and our commitment to strategically implementing our international expansion and diversification strategy are crucial to our success.”

For the full-year, Wacker Neuson expects to report revenues of €1.2 billion, up from €1.1 billion for 2012, on an earnings before interest, tax, depreciation and amortisation (EBITDA) margin of over 13%. The 2012 EBITDA margin was 13%.

Wacker Neuson said it saw new market opportunities in South America, Eastern Europe, Africa and Asia. To leverage this growth potential, it said it was increasingly distributing products and services tailored to regional requirements. It added that further growth opportunities also existed in its core markets of Europe and North America.