05.08.2014

Record half for Wacker Neuson

Austrian telehandler and light equipment producer Wacker Neuson has reported record first half results.

Total revenues for the six months were up almost six percent to €620 million, the increase would have been closer to nine percent higher at constant exchange rates. Pre-tax profits for the period jumped over 64 percent to €60.4 million.

Looking at the second quarter revenues were marginally below last year’s record at €328.4 million, while pre-tax profits increased 44.7 percent to €39.8 million. Most of the increase came from the compact equipment sector although the company also made strong progress in the agricultural market. sales of Light equipment were slower.

Chief executive Cem Peksaglam said: “We were able to further expand our market position in Europe, boosting revenue here by 10 percent. We also reported growth in North America. However, South America and Asia-Pacific developed below our expectations due to falling demand and currency fluctuations.”

“Strong traction from established markets in Europe and North America, plus the momentum from our current strategy path are all set to benefit our business over the current year. Our order books are full and order intake for compact equipment up to the end of June was 30 percent higher than the same time last year.”

The group is still predicting total revenue for the year of €1.25 to €1.30 billion and has earmarked around €85 million off investment in 2014, of which €53 million has been spent in the first half.

Vertikal Comment

Another good quarter for Wacker Neuson demonstrates how the company is making solid and steady progress as it increases the market coverage and awareness for its range of high quality products, including compact telehandlers.

Given its current geographic spread and brand awareness the company still has a great deal of potential in large swathes of its core European market, where it is still a minor player and its brands less well known.