International light and compact equipment manufacturer the Wacker Neuson Group has reported record revenue and earnings for the first half of 2015 despite what it called challenging regional market conditions.
Revenue for the six months to 30 June increased 14% year-on-year to €706.4 million, compared to €620 million in 2014. The group also reported a 4% rise in earnings before interest and tax (EBIT) to €65.7 million.
“Our business grew significantly despite negative market developments in many countries, especially outside the USA and Europe,” said Cem Peksaglam, CEO of Wacker Neuson SE.
“This is due to our strong market position and our continued commitment to implementing our strategy.”
In Europe, revenue rose 11% from the previous year, and now accounts for 72% of the group’s total revenue. The largest increase came from the Americas region, which reported a 22% rise in revenue, while the Asia-Pacific region was 21% higher. Taking currency effects into account, these figures were 3% and 8% respectively.
Compact equipment again proved to be the main growth driver, with revenue up by 25%.
However, the group said that light equipment, which was up 5%, fell short of expectations. This was mainly attributable to difficult market dynamics in countries such as Canada, Brazil, Chile, China, Australia and Russia.
Second quarter revenue was €382.1 million, a rise of 16% year-on-year, though profit was down 18% to €34 million compared to what the group described as an exceptionally strong quarter 12 months earlier.
Looking ahead to 2015, Mr Peksaglam said: “Our order books are full and we expect the promising conditions in established markets to have a positive impact on our business.
“The group expects revenue for the year to range between €1.40 billion and €1.45 billion, which corresponds to a rise of between 9% and 13% relative to the previous year. The EBIT margin should still be on target between 9.5% and 10.5%.”