Wacker Neuson looking to grow outside Europe
By Steve Ducker16 March 2015
Central Europe and North America were the best performing areas for Germany’s Wacker Neuson Group as it announced increased revenues and profits for 2014 with further growth expected this year.
The German equipment manufacturer achieved record revenues of €1.28 billion, up 11% on 2013, while EBITDA, at €196 million, showed a 28% rise. As a percentage of revenues, this was up just over 2% on the previous year’s figure, at 15.3%.
The group described the Central European and American markets as “comparatively robust”, and said overall revenues were line with its previous forecast of €1.25 billion to €1.3 billion. By contrast, it said South America had not developed as well as expected.
“The fact that our business in Europe grew by 12% despite regional weaknesses shows our strategy is delivering,” said chief executive officer Cem Peksaglam.
“In North America, a vigorous economy and the expansion of our dealer network helped drive growth in the region.
“As long as 2015 does not bring any further economic, financial or currency-related crises, we expect revenue to grow between 9% and 13%, or between €1.4 billion and €1.45 billion.”
In terms of products, the group reported a 17% increase in revenue from compact equipment, as a result of new customers in the agriculture, construction, landscaping, gardening and municipal sectors.
Compact equipment now provides nearly half the group’s total revenue. The balance comes from light equipment and service including spare parts, which posted smaller revenue increases of 4% and 10% respectively.
Wacker Neuson expects North America to be another strong growth driver in 2015 and beyond.
“We want to grow fastest outside of Europe and have identified enormous potential there,” commented Mr Peksaglam.
“Our long-term goal is to increase the revenue we generate outside of Europe from the current level of 29% to around 40%. Of course, this does not mean that we will be neglecting the European market. We still see many opportunities to expand our business here too.”