Strong first half for Wacker Neuson
Telehandler and light equipment manufacturer Wacker Neuson has reported a strong first half.
Revenues for the six months to the end of June was €825.1 million, up eight percent on the same period in 2017. This was made up of €599.2 million in Europe- up eight percent, €201.8 million in the Americas – an increase of nine percent and 24.1 million in Asia Pacific, up four percent on the year. In terms of products Light Equipment represented 230.1 million, a three percent increase, while Compact Equipment sales – which includes telehandlers – increased 11 percent to €450 million the rest was made up of service revenue which was eight percent higher.
Pre-tax profits for the period jumped 122 percent to €127.7 million – But – this includes a one off profit of €54.8 million on the sale of a property company owned by the group. Without it re-tax profits improved 27 percent to €72.9 million.
In the second quarter revenues were seven percent higher at €454.6 million with European sales rising eight percent to 331.4 million, the Americas by six percent to €110.1 million, while sales in Asia Pacific fell four percent to €13.1 million. As far as product group Light Equipment sales were one percent higher at €126.9 million, Compact Equipment revenues improved 10 percent to €250.6 million as did services to €86.4 million.
Pre-tax profits were 54.8 percent higher with the property company sale at €107.1 million, and 18 percent higher without - at €52.3 million.
Chief executive Martin Lehner said: “Our strong performance in Europe was fuelled by a buoyant construction market, positive development of our Kramer and Weidemann brands in the agricultural sector and growth in our services segment, which includes our maintenance and spare parts business.”
“In the Americas our skid steer loaders manufactured in the US are key products in our compact equipment portfolio, helping us to win more market share in the region with other products such as excavators and dumpers. Revenue for region rose nine percent, but the weak US dollar had a particularly strong impact in this region. When adjusted for currency effects, revenue rose 21 percent. A high level of investment activity among rental chains in North America and strong sales of compact equipment had a positive effect on business.”
“Revenue in Asia Pacific rose four percent, with the strong euro also squeezing growth figures here. Adjusted for currency effects, revenue rose 11 percent.”
Wacker Neuson continues to go from strength to strength, and is building a strong reputation for quality in some very challenging and competitive markets such as mini excavators and skid steers, not to mention telehandlers where the company possibly has the most scope for further revenue growth – given that its current market share is very small, and that it has the potential to increase its geographic coverage, expand the range of models it produces, step up its telehandler marketing and brand awareness, and take market share from others.
At its current growth levels the company looks set to become a $2 billion dollar company this year, and possibly a €2 billion euro company in 2019. A very positive and encouraging set of numbers while increasing profitability at the same time.