12.05.2017

Good start for Wacker Neuson

Telehandler and general equipment manufacturer Wacker Neuson has reported a solid rise in first quarter revenues while profits slumped.

Total revenues for the quarter were a record €338.5 million, seven percent higher than this time last year, while pre-tax profit slumped 17 percent to €13.1 million, this due to a change in account practices for 2017 and higher executive expenses/costs. The Compact Equipment division - which includes telehandlers - also grew seven percent and now represents 52 percent of total revenues. Order intake improved 11 percent pushing the order book/backlog up 22 percent.

Outgoing chief executive Cem Peksaglam said: “The year has got off to a very promising start for our group. The investment mood among many national and international customers in most of our target industries was very positive. This pushed our revenue to a new record high for a first quarter. Business developed strongly in Europe, in particular in Germany and France. We also reported high double-digit growth from our business with key accounts in Europe. In addition, after experiencing significant downturns in recent years, the agricultural sector has started to recover, which is reflected in high order intake for our Weidemann and Kramer brands.”

“Revenue in the Americas grew even more rapidly than in Europe, with the group reporting a 13 percent increase relative to the previous year. Demand in the oil and gas sector in North America remained weak. However, we benefited from stronger demand in other areas, in particular the construction industry. Moving beyond persistent problems with the start-up of our skid steer loader production, these machines were now once again able to contribute to growth in the region during the first quarter. Business in South America also showed positive momentum as anticipated, with the region reporting double digit gains.”

“We expect the projected positive trend in our business to continue throughout 2017. Our optimism is strengthened by the current healthy order situation, positive trends in our core markets of Europe and the US, a more upbeat investment mood in the agricultural sector, growing business momentum in South America and a gradual recovery in markets dependent on the price of raw materials such as Australia. At March 31, 2017, accumulated order intake for compact equipment was around 11 percent higher than the prior-year figure. Order backlog lay an impressive 22 percent above the figure reported for the same period last year."
Vertikal Comment

Wacker Neuson has been steadily winning new customers for its compact equipment and spreading its geographic coverage. Those who own and operate its telehandlers speak highly of them in terms of quality and reliability, although the company is a tad slow in coming forward to market them.

The company has plenty of potential, and maybe a new chief executive will stimulate a more outgoing and adventurous approach for its larger equipment such as telehandlers?